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PROPERTY

Why one Sicilian town has put the price of its €1 homes up to €3

The cheap homes hotspot of Sambuca di Sicilia has launched its latest property offer, selling off 12 abandoned properties - this time for the symbolic price of €3.

Published: 20 June 2024 15:54 CEST
Updated: 23 June 2024 08:12 CEST
Why one Sicilian town has put the price of its €1 homes up to €3
A new batch of homes in Sambuca di Sicilia is going on sale for as little as three euros. Photo: David Tip on Unsplash

Over the last decade, Italy’s famous one-euro home offers have been making headlines internationally – and they show no sign of stopping.

Perhaps no town in Italy has been quite as successful at selling them as Sambuca di Sicilia, a village in the eastern part of Sicily.

The town, with a population of around 5,000, first came into the spotlight five years ago for being among the first to offer abandoned houses for one euro.

READ MORE: Can you still buy Italy’s one-euro homes in 2024?

The mayor reported a “property stampede” at the time as his council was inundated with enquiries from around the world.

It repeated the process two years later in 2021, when the price started from two euros. The village is now on its third batch of sales and is upping the starting price again – this time to three euros.

According to newly-elected mayor Giuseppe Cacioppo, who introduced the first offer as deputy mayor in 2019, the price is going up by one euro every time because “we just want to make it clear that by numbering these batches, more sales will likely follow in coming years.”

The cheap home offers had been “a hit so far” among foreign buyers, and the town had timed the latest sale to coincide with the tourist season, he told CNN.

“Tourists and interested buyers currently travelling to Italy, and those planning a trip in spring and summer, can come take a look,” he said.

MAP: Where in Italy can you buy homes for one euro?

Cacioppo told The Local in 2022 that cheap property sales had boosted the local economy by €100 million in two years.

The 12 properties included in this year’s €3 offer are currently under the ownership of the town hall, having reportedly been abandoned following an earthquake in 1969.

Cacioppo first announced the latest round of sales in November, telling Sicilian regional press: “We continue to believe that the one-euro house project is the right way to create development.”

As with all of Italy’s famous cheap home offers, the true cost involved is slightly more than the symbolic price of €3.

The purchase process varies by town, but in Sambuca’s case this is just the starting bid in an auction process, with houses in previous years being sold for anything between one and 25,000 euros.

READ ALSO: Six things to know about Italy’s one-euro homes

Those taking part in the auction are required to pay a deposit of 5,000 euros and must commit to renovating the property within three years, at their own expense.

Anyone interested must submit their application by 1pm on August 5th in a sealed envelope containing a bank transfer receipt for the €5,000 deposit and a photocopy of an identification document, according to the town council’s instructions.

More information about the offer is available on the council’s website.

Please note The Local is unable to help you purchase a one- (or three-) euro home in Italy. Although please let us know if you decide to make an offer!

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PROPERTY

Five expensive mistakes to avoid when buying a house in Italy

Italy may be known for property bargains, but the purchase process itself isn't cheap - and certain mistakes can make it far more costly for buyers.

Published: 27 June 2024 11:05 CEST
Five expensive mistakes to avoid when buying a house in Italy

There’s always a lot to keep in mind when buying property, but the Italian purchase process may be quite different to what you’re used to in your home country.

As well as involving high taxes and fees, it’s likely to be more complex and formal in some ways – and this can lead to potentially costly pitfalls.

The Local spoke to three Italian property law experts at legal firm Mazzeschi to find out what foreign buyers should be aware of before they sign anything. 

1) Check your estate agent’s contract

If you use a real estate agency in your Italian home search, normally you’ll need to sign a contract with them. That contract should stipulate their fees, their duties, and their tax information.

There is one other thing in the contract which potential buyers must look out for: an exclusivity clause, meaning the potential buyer may use only that estate agent in their property search for a set period of time.

“Usually in Italy estate agents like using this exclusivity clause. It is normally the same for sellers as it is for buyers. It means you cannot have another estate agent and usually contracts say this, “says Caterina De Carolis, Lawyer at Mazzeschi.

READ ALSO: How to avoid hidden traps when buying old property in Italy

“If the time frame is not yet up, and the potential buyer uses another agency, they may still be liable to pay the agency fee for the initial estate agent they entered their contract with,” she adds.

Some contracts might not have an exclusivity clause. It’s always worth double-checking.

“If you use another agency to find a house, you’ll be liable to pay the agency with the exclusivity clause in the contract around 2-5 percent of the house’s sale price,” says De Carolis.

“The exact percentage is always in the contract.”

2) Make sure to agree on a price beforehand

This rule is universal, and may sound obvious. But there are costly consequences in Italy if the price is not formally agreed and written down.

Lawyers at consultancy firm Mazzeschi urge their clients to make sure the full price of the property is declared in the transfer deed (l’atto di trasferimento).

This is because if you resell at a market price higher than your purchase price, you are subject to pay a capital gains tax called plusvalenza. Plusvalenza is the difference between purchase and sale price.

Checking the price of the property beforehand will save you in the long run. Photo by Kirill KUDRYAVTSEV / AFP.

3) Don’t change your mind – it will cost you

If the potential buyer has signed a binding proposal (proposta vincolante) – the process before a preliminary contract is drawn up – it becomes less straightforward to withdraw from the purchase.

“This is because the binding proposal in Italy is a lot more formal,” says Mario Mazzeschi, Head of and Attorney at Law of Mazzeschi Consultancy. 

The binding proposal works similarly to an offer. When the potential buyer puts forth their offer, the potential seller decides whether or not to accept. The period of time for this part depends on the proposal drawn up.

READ MORE: Five things non-residents need to know about buying property in Italy

If, before the time is up, the potential buyer decides to withdraw their offer for any reason, they will likely lose their deposit.

“This deposit is usually around 5-10 percent in most cases, so the buyer will have to pay that,” says De Carolis.

“If the buyer decides to withdraw, they are usually liable to pay the seller twice the amount of the deposit.”

If the proposal is not accepted by the potential seller, the potential buyer pays nothing.

4) Don’t pay anything before the preliminary contract is signed

With the exception of the above, buyers are advised not to pay anything until the preliminary contract is signed. The preliminary contract allows both parties to set out clear guidelines.

“The buyer should check with a lawyer before signing the preliminary contract as it will save them in the long run,” says Mazzeschi.

A notary should be present at this signing, adds Giuditta De Ricco, Lawyer at Mazzeschi Consultancy.

“Notaries are public functionaries. They are never on the side of the buyer or the seller, but for sure a notary is needed.”

“They are completely neutral and often it is wiser and safer for the potential buyer to put their deposit into the notary’s escrow account so the notary can transfer the money to the potential buyer.” 

5) Have the property checked beforehand

While the notary will normally check the paperwork before the sale goes through, you’ll need a different professional to check the property itself.

It may then be in the buyer’s best interest to hire a contractor themselves (this will normally be a qualified geometra, or surveyor) to get the structure of the building checked out and detail any faults or repair work needed.

This should be done before the negotiation stage, as unless there is something specific in the preliminary contract you may lose anything you have paid by pulling out of the purchase at this stage.

“The only way out of this after signing a contract is if you can prove the seller acted maliciously,” says Mazzeschi.

Key vocabulary

Transfer deed – l’atto di trasferimento

Binding proposal – proposta vincolante

Notary – notaio

Preliminary contract – contratto preliminare di vendita

Final contract – atto di vendita or rogito notarile

Deposit – caparra

Surveyor – geometra

Estate agent – agente immobiliare 

Please note that The Local cannot advise on individual cases. For more information about how you can buy property in Italy, contact a qualified professional. 

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