Base price (prezzo base) and minimum offer (offerta minima): the difference explained with an example
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What the base price means in simple termsWhat the minimum offer is and why it existsHow it is calculated: an example with round numbersHow the minimum offer works in the bidding roundWhen an offer below the base price can winWhat happens if the auction has no bidsThe relationship with the depositThe most common mistakesIn practiceFrequently asked questionsSourcesThe base price (prezzo base) is the amount at which the auction starts, set by the judge on the basis of the appraisal report (perizia). The minimum offer (offerta minima) is the lowest price at which you can take part: by law, it cannot fall below three quarters of the base price. Example: base price €100,000, minimum offer €75,000.
What the base price means in simple terms
The base price is the starting value of the court sale. The judge sets it based on the estimate of the appraiser (perito), who in the appraisal report describes the property and calculates its market value, adjusted for its actual condition, occupancy and any irregularities.
In the notice and the sale announcement you will find it written as «prezzo base». It is not the price you will pay: it is the reference from which offers are calculated.
What the minimum offer is and why it exists
The minimum offer is the amount below which your offer is not valid. The law sets the limit: an offer is ineffective if it is more than a quarter lower than the price set by the judge (art. 571 of the Code of Civil Procedure). In practice, the minimum offer is equal to three quarters of the base price.
It serves to prevent very low offers, which would slow down the sale without leading to a reasonable price for the creditors.
How it is calculated: an example with round numbers
Example. Let us take an invented case.
- Base price: €100,000.
- Minimum offer: €75,000 (three quarters of €100,000).
- If you decide to offer €80,000, you are above the threshold and your offer is valid.
- If you offer €70,000, you are below the threshold: your offer is not effective and is discarded.
The difference between the two figures is €25,000. This does not mean you have saved €25,000: it means you can offer up to €25,000 less than the base price, and no one is obliged to accept less.
The calculation must always be redone on the base price written in your notice, not on that of another listing.
How the minimum offer works in the bidding round
It is not enough for your offer to exceed the minimum offer to win. When several valid offers arrive, a bidding round opens among the bidders, starting from the highest offer. The minimum bid increment (rilancio minimo), that is the minimum increase to be made at each bid, is set in the notice (see how to read a sale notice line by line).
If no one bids higher, the highest bidder wins. If several offers have the same amount, the order of preference is indicated in the notice: usually the highest deposit counts first, and then the shortest payment term.
When an offer below the base price can win
If you submit a single offer equal to or higher than the base price, the judge accepts it. If it is lower than the base price but not below three quarters, the judge may award the property to you. However, this is not automatic: the judge may consider that a higher price is likely with a new sale, or the creditor may ask to keep the property.
Therefore, an offer at the minimum does not guarantee you the award. It is worth knowing that this possibility exists, but do not count on it.
What happens if the auction has no bids
If no one submits a valid offer, the sale does not take place and the judge sets a new attempt. The price may fall, but only within precise limits: after the first attempt with no bids, the reduction can reach a quarter of the base price.
Example: base price €100,000. At the second attempt the price may fall to €75,000, and the minimum offer will be €56,250. The new price is always written in the notice. To understand how the price changes in the following rounds, read auction with no bids: how much the price falls in the next round.
The relationship with the deposit
To take part you must pay a deposit (cauzione), that is a sum paid as a guarantee before the bidding round. The law states that it must be no less than one tenth of the price you propose, that is 10%. The calculation is made on your offer, not on the base price.
Example: if you offer €80,000, the minimum deposit is €8,000. The notice may require a higher percentage: always use the one written in the notice. For details on refunds and timing, read deposit: how much to pay, how and when it is returned.
The most common mistakes
- Confusing the base price with what you will have to pay. The award price is added to taxes and costs.
- Calculating the minimum offer on the market value or on a different listing, instead of on the base price in the notice.
- Calculating the deposit on the base price instead of on your offer.
- Thinking that an offer at the minimum always wins: the judge may decide otherwise.
In practice
- Look in the sale notice for the line «prezzo base» and note it down: it is the starting point.
- Calculate the minimum offer by dividing the base price by four and multiplying by three, and check that the result matches the figure given in the notice.
- Calculate the deposit on the offer you intend to make, not on the base price, and check the percentage required.
- Factor in taxes and costs: the amount you bid is not everything you will pay.
Frequently asked questions
Can I offer less than the minimum offer?
No. An offer more than a quarter below the base price is ineffective, that is, it is not considered. For this reason the minimum limit is always written in the notice and must be checked before making an offer.
If I lose the auction, is the deposit refunded?
Usually yes. The deposit of non-successful bidders is returned after the bidding round, within the timing indicated in the notice. Check the procedures written in the sale notice.
Can the base price change during the proceedings?
Yes: if the auction has no bids, the judge may set a new attempt with a lower price, within the limits of the law. The updated price is always indicated in the new notice.
Sources
In the same chapter
- Auction with no bids (asta deserta): how much the price drops at the next roundAuction with no bids (asta deserta): the price can fall by up to a quarter at the next attempt, and by up to half after the fourth. Example with numbers and what to check.
- 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.
