Why use an Estate Agent in Malta?

Whether you buy or sell a property in Malta, you have the choice of using an estate agent to assist you or not. What value can an agent add to your property if you are selling, and how can the agent help you to find your new home? Let’s split that question into two separate ones as they are fundamentally different.

Question 1 – Selling your Property

When you put your house up for sale, you invariably want to sell as fast as possible. Having worked in the property for several years in Malta, I have seen properties listed and remaining unsold for years. If you aren’t under pressure to sell, then skip this part. However, if you want to sell as soon as possible, like most people, the fastest way is to engage an agency to assist up with your sale.

Why Engage a Listing Agent?

The agency will have multiple listings of similar properties to yours and access to actual sale prices in your area as opposed to advertised prices which are considerably different. Any agent worth his salt can provide you with a realistic price bracket for your property based on fact, not hearsay. That alone is well worth its weight in gold. Try discovering the actual sale prices of property in Malta, and you will be facing a brick wall. While abroad there are publicly available databases of property sales and selling prices, in Malta that information is solely in the hands of estate agencies.

That’s just the tip of the iceberg! An agent can provide you with the services of an architect. You will need one to produce an energy compliance certificate. You need one to sell your property, and without it, you cannot sell.

The agent can inform you about any taxes you will be liable when you sell your property, and that is a tricky question as there are many variables and different situations. The agency can also market your property on the website, social media, the local press, and even overseas.

Question 2 – Buying Property

The perks of using an estate agent to help you find a property are more apparent. The agency will have an extensive database of vacant dwellings you can check out online. You can then choose a handful of homes you would like to view, and an agent will take you on viewings.

Negotiating a Price and Recommending an Architect

Once you select a property, the agent will negotiate a deal for you. As a buyer, you aren’t obliged to pay an agency fee, as that is the vendor’s responsibility. The agent will recommend an architect to inspect your chosen property to ensure it is structurally stable, and that there are no illegalities such as ceilings lower than the legal requirement and internal shafts aren’t smaller than permitted by law. Such irregularities will stop the sale from going forward or worse still, and you end up buying it, as you will be unable to sell iron later.

Notary Public – Promise of Sale & Final Contract

The agent will also recommend a notary public to draw up and oversee the promise of sale and final contract. Buyers have the right to choose a notary, and the vendor is obliged to accept. Many first-time buyers are unaware of that and may go ahead using the vendor’s notary to their disadvantage. The benefits of using a local buying agent are numerous.

The After-Effects of COVID-19 on the Local Property Market

More buyers are looking to buy a property with outdoor space since the pandemic outbreak in 2020. Demand was already high, and buyers frequently demanded property with a terrace, balcony, yard or garden before 2020. That demand has intensified tremendously with many buyers making it a prerequisite, and demand for a property without outdoor area has declined considerably.

Surge in Demand

Values of properties such as maisonettes and penthouses have soared to unprecedented heights, making such property types much sought after. Moreover, apartments with terraces and sizable balconies, and ground floor apartments with large yards or back terraces have also experienced a surge in demand. The same goes for townhouses and villas.

Finding your Dream Home

If you own a home with an outdoor area, you are sitting on a gold mine! You will be able to sell your property quickly, provided it has a realistic price. On the other hand, if you are looking to purchase such a property, now is the time to buy. You can still pick up a bargain while most property owners are still unaware of the increase in demand for properties such as theirs. An estate agent can help you find the property of your dreams with an outdoor area and with a realistic price. There will always be individuals who need to sell fast. Only an estate agent will know of such situations.

Is the Price Negotiable?

The majority of properties with outdoor space are in the North of the island. However, it isn’t easy to identify the ones that aren’t overpriced. Try checking advertised prices, and you will get the impression that they are out of your budget. An estate agent will know how negotiable the owners are since the property would have been listed with the agency. That means a property priced at €300,000 may be negotiable by €50,000, while others only by a thousand or two. That makes a considerable difference in the eventual selling price.

Moreover, you will miss the opportunity to buy that property if your budget is around €250,000. You will also waste time viewing properties priced at €300,000 under the mistaken impression the owner will come down to €250,000 if he or she isn’t negotiable. That accentuates the value of using an agent to assist you in buying your dream property with an outdoor area.

The price of an apartment with a back or front terrace isn’t beyond your budget. There are numerous new units under construction with large balconies, and the stock of older apartments is still there. They aren’t overpriced, and you will be surprised by what you will find. If you buy on-plan, you can save even more if you are prepared to wait a few months until the block is ready. In that case, you will also be buying a property at today’s prices, rather than the price in a year, which may be up to 10% higher. We can assist you in finding your dream property, whatever your budget and personal requirements. A home with a large outdoor space can be yours!

Why do you need a Garage?

Everyone knows it’s hard to find a parking place in densely populated locations and town centers. The first question a buyer asks is the availability of a lock-up garage or parking space. There has been a surge in car importations in the last decade, and most families have two cars. More luxury cars have been imported and populate our streets. That has led to an increase in demand for parking facilities by property buyers. Many people own an expensive vehicle that they want to keep in good condition. If you are selling your property, it could be a deal-breaker. If you do have one, well and good, but what if you don’t?

What can you do if your Property doesn’t have a Garage?

If you happen to reside in a densely populated area, the chances are that there are a few new apartment blocks under construction in your location. Larger blocks, in particular, will have several lock-up garages and car spaces available in the building. There may be a few for sale, as not every buyer in that block will have bought one. Buying a parking space for €20,000, or a lock-up garage for €30,000 can boost the value of your property considerably. Investing in parking facilities to offer with your property will increase the selling price by far more than the price you pay for the parking space or garage.

A Prerequisite for many Property Buyers

Without a garage, your property is at a disadvantage when compared to the competition. You will automatically be eliminating a large chunk of buyers who won’t even view a property unless it has one, no matter how much of a bargain it is. Lock-up garages are a must for buyers who own more than one car and those who own expensive luxury vehicles. Any sort of parking facility adds value to your property whether parking is a problem on your locale or not.

Double Benefits

Not only will a parking space or garage increase the value of your property, but you will struggle to sell it at its market value. Luckily, there are options for you to consider, such as buying a space or lock-up garage in a block near yours. There may be stand-alone garages for sale that aren’t overpriced. Even buying one at €20,000 might make sense if your property is in the €250,000 to €300,000 price bracket. Without one, your property is worth less than you think. You need all the advantages available to sell fast, and parking space is top of that list. It doesn’t need to be a street-level five-car lockup garage, although that would be the ultimate benefit for prospective buyers. A car space in a block of apartments nearby will do. At least you can then market your property with parking space and not lose out to the majority of buyers who won’t see a property without one. We have an extensive database of such options that will increase the value of your property and enable you to sell it faster.

How do the latest government property measures affect buyers?

2020 has been an unpredictable year with the pandemic initially interrupting the property market due to the lock-down in the first half of the year. Nevertheless, the local market has proved to be resilient with sales booming in August, creating unprecedented demand that surpassed the previous four years’ sales. The Malta Developers’ Association announced that over 1,300 promises of sale were registered with a monetary value of over €300 million.

Increased Savings for First-Time Buyers

To boost demand further, the government announced in the 2021 budget that the scheme for first-time buyers will be extended to March 2021 for the promise of sale agreements and signing of contracts to December of the same year. Moreover, the property value ceiling is being increased to €200,000, up from the previous limit of €175.000 for high demand areas. The scheme exempts first-time buyers from 5% stamp duty on the first €200,000 that will create additional savings. Anything above €200,000 up to €400,000 is liable to a 1.5% stamp duty and anything above the €400,000 value is liable for the standard rate of 5%.

Why Buy Property in the North?

If buyers choose a property located in Gozo or an Urban Conservation Area, the stamp duty is reduced further to 1.5% on the amount above €200,000, up to €400,000. Buying property in the North is of particular interest as it creates additional savings for first-time buyers, making it a more attractive proposition. Property in the North isn’t plagued by parking problems or overcrowding, and property prices aren’t exaggerated as they are in locales such as Sliema or St Julian’s. Resale values are improving as more locals and foreigners are coming to realize the investment potential of buying a property. The scheme favours those buying property in the North, making it more affordable for first-time buyers who are usually on a tighter budget. The savings can be used for furniture, decorating and internal fittings like floor tiles, bathrooms and electronic appliances such as air-conditioning units.

Who can apply for the Scheme?

Maltese and EU citizens buying their primary residence in Malta are eligible for the scheme, while non-EU residents aren’t, and will still need to apply for an AIP permit. The property should be the first residence. The scheme applies to immovable property, while furniture and fittings are tax-free. The government adopted suggestions put forward by The Malta Developers’ Association that recommended extending the program. It is the second time that the government has increased the ceiling, and other property-related incentives were announced, like raising the tax-exempt threshold for property donations to €250,000, up from €200,000.

What are the Benefits for First-Time Buyers?

The newly introduced property scheme favours first-time buyers who make the bulk of property purchases. The Northern part of Malta provides better value and is more affordable. Furthermore, many buyers today are purchasing semi-finished properties or buying on-plan since the cost savings are more significant, and they are less expensive. The new scheme will undoubtedly boost sales, particularly in locations that are affordable for individuals who are buying their first property. Areas like St Paul’s Bay, Mellieha, Gharghur and also Gozo are now even more attractive than they ever were. Get in touch with us at justproperties.com.mt for a free consultation and an overview of the best value properties for sale in the North before it’s too late, and the scheme ends in December 2021.