We gained valuable insights during our journey of purchasing a home in Italy. Although buying property in Italy is not inherently more difficult than in the US, it's important to understand that the system and process can differ significantly and are not always straightforward.
While the general steps, such as property searches, contracts, and transactions, may be similar, local customs can vary greatly, and language barriers can present challenges. Also, terms that seem familiar in English might have entirely different meanings in Italian! Interested in exploring the unique aspects and cultural quirks of Italian real estate market compared to the US? Let’s dive in...
Crickets
One common hurdle for foreigners seeking to purchase property in Italy is the difficulty in getting responses from realtors. That was definitely our case before we sought the help of our consultants. The realtors in Italy often seem less motivated to sell houses, particularly in tourist areas where they encounter many "tire kickers" – curious tourists without genuine intent to buy.
To get the attention of realtors and ensure they respond to inquiries about properties, foreign buyers should communicate clearly and professionally, ideally in Italian (Google Translate is your friend) to show respect for the local culture. Highlighting serious intent by detailing your budget, timeline, and specific requirements, as well as providing complete contact information, is crucial. Persistence is key, so follow up if you don’t receive a response within a week. Connecting with a local real estate agent or real estate lawyer, like we did, can greatly facilitate communication and navigation of the market. Mentioning any personal connections or referrals can also help. Finally, we recommend confirming your appointments to view properties to convey your seriousness.
Types of Properties
In the US, the term "condo" typically refers to individually owned residential units in a larger building that can be bought and sold by individuals, offering the benefits of homeownership without the maintenance responsibilities of single-family homes. In Italy, the term "apartment" (or "appartamento" in Italian) refers to a similar type of housing unit within a multi-unit building or complex. However, unlike in the US, apartments in Italy are predominantly owned rather than rented. While condos in the US offer a form of ownership within a shared community, apartments in Italy are mostly seen as individual properties available for purchase. In Italian, the term "villa" typically refers to a large, luxurious country residence or estate, often with expansive grounds or gardens. Our home is actually a condo because we share the private garden space with a handful of other owners.
Stalked by Sellers
Italian sellers want to know who’s peeking through their closets and inspecting their pantries. Don’t be surprised if you’re followed around during house viewings by curious sellers. It’s like house hunting with an audience – you’re basically a real estate reality star!
Italians often prioritize personal connections and relationships in various aspects of life, including business dealings like selling a home. Meeting the person buying their home allows them to establish a personal connection, build trust, and ensure a smooth transaction. The seller of our home wanted to meet us over Zoom to get to know us and personally tell us that she was accepting our offer.
Realtor Roulette & Representation
In the United States, the process of engaging with real estate agents revolves around selecting a representative who shares your goals and will advocate for your interests. Typically, this entails forming a formal relationship with a buyers' or sellers' agent, depending on your role in the transaction. These agreements establish clear terms under which the agent will assist you in your property search or sale. However, in Italy, the real estate landscape takes on a different rhythm.
In Italy, the concept of exclusive representation is less common. There's no Multiple Listing Service (MLS) in Italy. Properties can be listed across various platforms by different realtors, leading to a potential maze of listings for buyers to navigate. During our search, we viewed nearly a dozen properties, meeting a new realtor at each property. This decentralized approach can sometimes result in confusion, as identical properties may appear in multiple listings with different agents. We found ourselves saying, "wait a minute, isn't that the same red couch from the other apartment?" This lack of centralized representation adds an extra layer of complexity to the home-buying process, requiring buyers to be vigilant and discerning as they explore their options. We felt very fortunate that we won the game of realtor roulette when the selling agent for our home, Luca Sighieri of Living in Centro, was so incredibly helpful and responsive to us during our purchase process and beyond.
When engaging with Italian realtors, do not assume they will speak English. While many do have basic proficiency, many do not, and misunderstandings can easily arise. To ensure clear communication and avoid potential pitfalls, bring a translator if you are not conversationally fluent in Italian. This not only helps in accurately conveying your needs and understanding the realtor’s responses, but it also demonstrates respect for their language and culture. Utilizing a translator can make the process smoother and more efficient, ultimately leading to a more successful experience.
First Dibs
While Italy doesn't have buyer's and seller's agent agreements, there is a custom known as "provvigione all'incaricato" or "compenso al primo incaricato," which translates to a commission or compensation to the first real estate agent who introduces a buyer to a property. This means that if a buyer is shown a property by a particular real estate agent, and then decides to purchase that property, the buyer is typically expected to work with that agent for the transaction, and the agent will receive the commission for facilitating the sale. This practice emphasizes the importance of loyalty between the buyer and the agent who initially showed them the property.
Hurry Up and Wait
People often comment on Italy's pace of life with admiration, describing it as leisurely, relaxed, and deeply ingrained in the country's cultural fabric. The concept of "dolce far niente" or the sweetness of doing nothing, is celebrated in Italian culture, reflecting a mindset that prioritizes quality of life over productivity and haste. While this slower pace of life can sometimes be frustrating for those accustomed to a more fast-paced lifestyle, many find it refreshing, allowing them to fully immerse themselves in the richness of Italian culture and enjoy a more balanced approach to living. When working through a real estate transaction, this cuts both ways and a slower pace can be especially exasperating if you don't level-set expectations. Patience is paramount.
Historical Home Hindrances
Italy is renowned for its rich cultural heritage and abundance of historic properties, ranging from ancient ruins to Renaissance palaces and medieval villages. It's safe to say that a substantial portion of Italy's housing inventory consists of historic properties subject to preservation regulations. One significant hurdle that can slow down the purchase of an historical property is the involvement of The Soprintendenza ai Beni Culturali, the governmental body tasked with protecting Italy's cultural heritage. When purchasing a historic property, there's a mandatory waiting period of 60 days during which the Soprintendenza has the authority to intervene if they determine the property holds significant cultural value to Italy. Basically, they have the right of first refusal to buy the property. This waiting period was nerve-wracking for us as it introduced an additional element of uncertainty into the transaction. I'm more of an instant gratification girl, so waiting out the 60 days was painful!
A Note on Notaries
In Italy, property transactions are overseen by notaries, rather than attorneys as in the U.S. Notaries wield authority similar to judges, ensuring legal integrity. They manage closing processes, verify documents, and enforce legal requirements, similar to a judge in court. Deposits, usually around 10%, are held by notaries until closing. This occurs post-Compromesso, prior to final closing, symbolizing commitment to your Italian home. In the US, notaries mostly just witness the signing of important documents.
Cadastral Value
You might encounter the term "cadastral value," or "valore catastale," during the property listing phase or when discussing the financial aspects with a seller or real estate agent. Cadastral value is a value assigned to a property by the Italian government for tax purposes. This value is typically lower than the market value and is used to calculate various property-related taxes, such as the purchase tax (imposta di registro), municipal property tax (IMU), and inheritance tax. Determined based on the property's size, location, and intended use, the cadastral value provides a standardized measure that ensures consistent tax assessments across different regions and property types. Similar to the assessed valued of a property in the US, being aware of the cadastral value can help buyers better estimate their overall tax liabilities when purchasing property in Italy.
Lost in Translation?
When buying property in Italy, all legally binding documents are obviously written in Italian. For American buyers, this necessitates the translation of every document to fully understand the details. Some real estate agents provide pre-printed contracts with English translations when working with foreign buyers. However, these translations are often inaccurate, leading to potential misinterpretations of the contract's content. In case of any legal disputes, the Italian version of the contract will always prevail. Therefore, it's critical never to sign an Italian legal document without the guidance of a bilingual qualified lawyer who can clearly explain the full scope of the agreement and its legal implications in English. This ensures that American buyers are fully informed and can avoid costly errors in the property purchasing process. Dario is fluent in Italian, but there were still several instances where having our lawyer to translate was helpful.
The Geometra
Unlike in the US, it is not standard practice to do a final walk through of the home prior to closing. Enter
the geometra. The geometra in Italy serves as an essential guide through the complexities of real estate, from assessing structural integrity to deciphering zoning regulations. When we hired a geometra for our home, we had assumed it was similar to a home inspection, so we were surprised to discover some issues in our new home that hadn't been mentioned. Unlike American home inspectors, their role focuses more on the property's history and regulations than on uncovering hidden flaws like a leaky shower. While employing a geometra is not legally required when buying a house in Italy, it's highly recommended due to the intricate legal and bureaucratic processes involved. Geometras possess expertise in architecture, engineering, and construction, making them invaluable allies for buyers navigating the Italian real estate market. Their multifaceted role includes ensuring compliance with regulations, streamlining the process, and providing peace of mind to buyers.
Investing in La Dolce Vita
While the process is not inherently more complicated than in the US, it does present unique challenges, especially for foreign buyers. Understanding the nuances of the Italian real estate market, from navigating language barriers to dealing with legal requirements, is essential. Despite the hurdles, it's so worth it! Whether you’re dreaming of an historic villa or a cozy apartment, being well-informed and prepared will help you successfully navigate the exciting adventure of owning property in Italy.
Buona fortuna!
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