The Benefits of a Real Estate Auction
- Articles, Selling Property in malta, Contributors, Jeff Buttigieg, Real Estate Auctions
A real estate auction accelerates the sale of your property beyond the traditional methods of listing, viewing and offers, to a process that takes only enough time to receive bids as per a standard auction. This intense and highly competitive system enables the public sale of any real estate in Malta and Gozo, in any condition, in a minimum time period.
Many may not understand the benefits of selling your home “under the hammer”. Why not sell my property through an open agency where I will have several agents viewing my property? What benefits would make me understand the advantages of listing my home for sale on an Auction agreement?
Below is a break-down of the benefits one should expect when take the leap and taking advantage of this fairly new method of selling.
Why should I sell my property via a real estate auction?
- Your property will be offered to a group of pre-qualified individuals who are all ready and willing to make a purchase
- It will be a quick and hassle-free sale
- You are assured your property will be sold at least at its true market value
- The added element of competition between buyers may increase the sale price of the property
- The process reduces long-term maintenance costs of your property through instant sale
- There’s a guaranteed timeframe for the sale
- It ensures your property is included in an intensive marketing scheme that boosts visibility and interest in Maltese press and media, social media, foreign and local magazines and in-flight magazines, for example.
- There’s no hassle normally associated with numerous house-viewings of various parties, who may not be serious buyers
- As the seller you need not be involved in the negotiation process
- All potential buyers must pre-qualify for financing, so no disappointments following an offer, and full buyer commitment following the sale
- Your property is also pre-qualified to ensure an unencumbered sale
Why should I buy a property at a real estate auction?
- You are assured that all properties offered at the auction have been committed to sale by the seller
- There’s the convenience of being able to view multiple properties in the same place at the same time
- All potential buyers receive transparent information regarding each property, so no blind purchasing
- The bids by the group of buyers determine the final purchase price, not the seller or estate agent
- There are no long negotiation periods associated with more traditional methods of real estate sale
- Competitive bidding means properties are usually purchased at market value
- The time it takes to purchase the property is significantly reduced
- Purchase and closure dates are known, and agreed upon by all parties
- There’s an equal and fair market amongst all potential buyers.
The average time period to sell on auction property is approximately 45 – 70 days, a period that is far less than an open agency which in many cases can be way over 180 days (6 months). If you are motivated to sell your property, you want to do away with anxiety that goes with waiting for a buyer to reach your doors, make an offer, bring an architect and hope the sale will come through. An auction house takes care of the necessary errands and checks that are required to ensure that a sale will go through without the added stress, leaving you with the convenience of only showing up to sign the Konvenju.
In conclusion, both the seller and the buyer benefit through a property auction creating a win-win situation. It is important that you always check out the latest upcoming auctions available in your area. The list of properties will usually range from one/two bedroom apartments to 5-star luxury Villas with pool so there is a great chance you will find a suitable a home.
Post by Jeff Buttigieg
Jeff Buttigieg is Co-Founder and COO of RE/MAX Malta and JK Properties Ltd. He overseas the marketing, PR, IT and business development of the company. He has a vast experience in real estate having been an associate and manager himself for several years.