Things Your Estate Agent Will Likely Discuss With You
1. Are you looking to sell a property in Malta?
The estate agent will need to determine if you’re a prospective buyer and, more importantly, whether your ability to purchase a new property depends on selling your current home. This applies primarily if you already own a property in Malta or Gozo. Understanding this helps the agent assess your financial readiness and how strong your position is in the property market.
2. Are you a cash buyer?
This question is important to the seller, as they need to know whether you can purchase the property right away. If you’re not a cash buyer, the agent may hesitate to show you properties that require immediate purchase, since you wouldn’t be able to secure a mortgage quickly.
For the agent, showing properties to someone who cannot buy them would likely lead to dissatisfaction. So, this question is crucial early on in the process.
A “real cash buyer” has the full amount of money available right now to pay for the property. A “second type of cash buyer” is someone who doesn’t need to sell anything but will require a mortgage to complete the purchase and cover any unexpected costs.
3. How is the sale of your property progressing?
If you’re trying to sell your property in Malta and haven’t received much interest, there could be a few reasons behind it. It might be due to the property being overpriced or perhaps you’re not in a hurry to sell.
In such cases, this can signal to the agent that you may not be in an urgent rush to purchase a property in Malta either. This information will guide them when showing you potential homes. If you’re eager to sell but struggling to attract buyers, the agent might offer to assess the value of your property and provide suggestions on how to improve its marketability. They might even recommend listing your property with their agency.
4. Have you explored mortgage options yet?
While this question might seem a bit personal, it’s actually quite practical. If you haven’t already checked with the bank to determine how much you can borrow, you might end up viewing properties outside your budget. Without a clear understanding of what you can afford, disappointment could follow.
In the Malta property market, banks frequently adjust their criteria for home loans, and it’s not always the case that what worked for a friend will apply to you. Banks are becoming increasingly cautious, so it’s advisable—both for your benefit and the agent’s—to consult with a bank before you start viewing homes. This way, you can plan your budget effectively and avoid wasting time. Plus, you might realize that waiting a year could give you more purchasing power and allow you to buy a property that better suits your needs.
How long has the property been listed for sale?
This will give you a good idea of how the property has been received in the market. If it hasn’t been listed for long, using the property’s exposure time to negotiate a better price may be challenging. However, if a property has been on the market for a prolonged period, it’s important to ask yourself, “Why?” This leads to the following important questions:
Is the Property Priced Competitively and Realistically?
The agent should provide an honest answer to this question, as it’s not in their best interest to back an inflated price. If the property is overpriced, it’s unlikely to sell, and that serves no purpose. A reputable agent will confirm whether the property is correctly priced.
What Have Similar Properties in the Area Sold For Recently?
A good agent will have researched other properties in the area and should be able to provide you with recent sales prices for similar properties. This can help you gauge whether the property is priced fairly.
Are There Any Structural Issues with the Property I Should Be Aware Of?
Agents are legally obligated to disclose any issues they are aware of. However, it’s important to remember that agents are salespeople, not structural engineers, so they cannot be held responsible for any problems they have not been made aware of, or issues you may discover later during the process.
Is There Any Uncertainty Regarding Ownership?
Thorough due diligence and research into the property’s ownership history should be available to the agent. If there are any doubts about ownership, these can be clarified with the help of a notary and/or the deeds office.
Does Anything Regarding the Property Need to Be Regulated?
Older properties, in particular, may require regulation, as many have been under the same ownership for decades, predating current legislation concerning alterations and additions. While this should not pose a significant issue, the necessary steps must be taken to ensure compliance with regulations.
Is a Property Report by an Architect Available?
Neither the agent nor the owner is obligated to provide a property report. If you’re serious about purchasing the property, you will need to hire a specialist, such as an architect or engineer, at your own expense to conduct an assessment.
Does the Property Qualify for Any Government Discounts or Subsidies?
Many properties are eligible for government incentives. Factors such as design, age, and location can influence whether a property qualifies. The agent will be able to confirm which schemes apply to the property you’re interested in.
Are the Views Guaranteed?
This is a common concern for many buyers, but unfortunately, no views are guaranteed in Malta or Gozo.
Can I Choose the Notary?
- While the agent will likely have a preferred notary to streamline the process and expedite the sale, as a buyer, you have the right to appoint the notary of your choice.
Will the Seller Be Willing to Fix a Few Things if I Make an Offer?
The agent can negotiate this as part of the sale conditions with the seller, and in most cases, the seller will be open to it. However, if you choose to make an offer, ensure that any agreements regarding repairs are clearly stated in all contracts.
Does the Property Have Any Ground Rent or Levies?
This is an important consideration that many buyers overlook, only to be surprised by a bill later on. Your agent can inform you if ground rent applies to the property and whether an apartment is subject to the recently introduced regulations. These rules require the appointment of a managing agent for apartment blocks with more than four units.
How Long Do You Expect the Entire Process to Take?
To get an exact timeframe, your agent can assess the process based on the complexity of the property you’re interested in. Each property is unique, with different rules or conditions that may affect the timeline.
Are There Any Additional Savings I Should Know About?
Some real estate companies, such as Frank Salt Real Estate, offer excellent buyer’s packages for first-time and second-time buyers. Through their network of suppliers, retailers, and legal partners, they’ve created incredible deals that can save buyers like you tens of thousands of euros. Be sure to ask your agent about these opportunities!
