Vol. 80 (2022)
Original Articles - Urban, Land, Environmental Appraisal and Economics

The assessment of the forced sale value in the Italian residential market

Felicia Di Liddo
Department of Civil, Environmental, Land, Building Engineering and Chemistry, Polytechnic University of Bari
Francesco Tajani
Department of Architecture and Design, Sapienza University of Rome
Paola Amoruso
Department of Finance, Management and Technology, Lum University
Rossana Ranieri
Department of Architecture and Design, Sapienza University of Rome
Debora Anelli
Department of Civil, Environmental, Land, Building Engineering and Chemistry, Polytechnic University of Bari
Published May 19, 2022
Keywords
  • Auction market,
  • Forced sale value,
  • Econometric methods

Abstract

The present research has focused on the development and experimentation of a model for the forced sale value determination. With reference to six study samples consisting of residential properties sold through judicial auctions between November 2020 and May 2021 and each of them located in an Italian region, the forced sale price, the market value assessed by a judicial valuer and the main influencing factors have been detected. The implementation of an econometric technique has allowed to obtain models for the forced sale value assessment and for the analysis of the factors that mostly influence the final hammer price and, therefore, the discount between the market value evaluated and the judicial price. In the context of the existing literature, the study represents the first attempt that proposes a quantification of the discount/premium coefficient based on the specific factors of the property, in order to provide a reliable assessment of the forced sale value.

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