Auction with no bids (asta deserta): how much the price drops at the next round
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What «auction with no bids» means (asta deserta)Why does an auction get no bids?How much the price can fallA worked example with round numbersWhat changes for you when the price fallsA lower price is not an explanationIn practiceFrequently asked questionsSourcesIf an auction gets no bids, meaning nobody submits a valid offer, the price can fall at the next attempt. As a rule, the judge can lower the base price (prezzo base) by up to a quarter; after the fourth attempt that gets no bids, the reduction can be up to half.
What «auction with no bids» means (asta deserta)
An auction with no bids means that, at the deadline, no valid offer has arrived. It does not mean the property was rejected for a specific reason, nor that the proceedings are closed. It means the sale did not take place, and the judge or the sale delegate (professionista delegato) sets a new attempt.
To understand the numbers you need to know two terms. The base price is the figure from which the sale starts. The minimum offer (offerta minima) is the lowest price you can propose. If they are not clear, first read the difference between base price and minimum offer.
Why does an auction get no bids?
The reasons can vary. The base price may be higher than what interested parties are willing to offer. The appraisal report (perizia) may reveal defects, encumbrances, unauthorised building works (abuso edilizio) or an occupied property. Often there is no single reason, and the notice does not explain it. For this reason, before bidding, you must read the appraisal report carefully.
How much the price can fall
The reduction is not decided by you, nor by the seller. It is set by the judge within the limits of article 591 of the Code of Civil Procedure. The rules are these:
- after one attempt with no bids, the base price can be reduced by up to a quarter;
- after the fourth attempt with no bids, the base price can be reduced by up to half.
The new price is always stated in the new notice of sale. Do not calculate it yourself from another listing. The notice published on the Public Sales Portal (Portale delle Vendite Pubbliche, PVP) is what counts.
A worked example with round numbers
Let's take an invented case. The base price of the first attempt is €100,000. Nobody submits an offer. The judge sets the second attempt with the maximum reduction of a quarter.
- First attempt base price: €100,000.
- Second attempt base price, with a reduction of a quarter: €75,000.
- Minimum offer on the new price (three quarters of the base price): €56,250.
- Deposit (cauzione), if the notice requires 10% of the offer and you bid €56,250: €5,625.
If the later attempts also get no bids, the reduction down to half of the base price is possible only after the fourth attempt with no bids. The new base price is stated in the notice of sale. Note: these are invented numbers to explain the mechanism. They are not a price you will find, nor a promise of a bargain.
What changes for you when the price falls
A lower price does not make the sale simpler. Some things do change, others do not.
- The minimum offer falls together with the price, but remains 75% of the new base price. See how it is calculated in the guide on the 75% minimum offer.
- The deposit is calculated on the offer you make, not on the old base price. The percentages are those in the notice.
- The dates and times are those of the new notice. Check the deadline for offers, because a late submission means losing the right to take part.
- The competition rules remain written in the notice. To understand every line of the document, read how to read a notice of sale, line by line.
A lower price is not an explanation
An auction with no bids is information, not an answer. Before bidding, ask yourself why nobody made an offer. Read the appraisal report: check the condition of the property, building regularity, occupancy status and encumbrances. For how to read it, you can use the guide on how to read a property auction appraisal report, section by section.
In a forced sale there is no warranty for defects (art. 2922 of the Civil Code). You therefore cannot ask for a price reduction or termination for defects you have not checked. For this reason, the appraisal report must be read before, not after.
In practice
- Check in the notice which attempt you are at: the base price changes at every round.
- Calculate the minimum offer on the price in the new notice, not on the first one.
- Calculate the deposit on the offer you intend to make, not on the base price.
- Read the appraisal report and look for the reason the sale got no bids.
- Note the date and time of the deadline for offers of the new attempt.
Frequently asked questions
If I made no offers, did I pay the deposit?
No. The deposit is paid only if you submit an offer. If you bid and are not the successful bidder (aggiudicatario), the deposit is refunded by bank transfer after the auction. The timing is as stated in the notice.
Can I offer less than the minimum offer of the new attempt?
No. An offer more than a quarter below the base price is ineffective. The limit must be calculated on the price set in the new notice.
Can the price fall below half the base price?
Under the rules of article 591, the maximum reduction after the fourth attempt with no bids is half the base price. If a notice states a different figure, ask the sale delegate for clarification before bidding.
Sources
In the same chapter
- Base price (prezzo base) and minimum offer (offerta minima): the difference explained with an exampleThe base price (prezzo base) is the starting point of the auction, the minimum offer (offerta minima) is the threshold below which you cannot bid. Here is the difference with an example using round numbers.
- Minimum bid increment: how much and when you bidThe minimum bid increment (rilancio minimo) is the smallest amount by which each offer must rise during the auction: it is set by the sale notice, and you will find it in the line dedicated to the auction.
- Sale without judicial auction, synchronous, asynchronous and mixed: what it meansSynchronous: online bidding at a fixed time. Asynchronous: online bidding over several days. Mixed: online or in the room, together. The sale notice says which one applies.
General information, not legal or tax advice: the law and the notice of sale prevail.
