When exploring the option of adding a property to be listed at auction, its important to consider what might make that particular property suited to the auction process in Malta and Gozo.
Whilst all properties are saleable by auction – from residential property and vacant land through to commercial and industrial real estate – not all property may be best served by being sold at auction, especially if it might only appeal to a narrow market.
Generally, if two of the three parties involved in a property sale – that is the buyers, the seller, and the property itself – are favourable towards auction, then auction is a suitable sales possibility for that property.
Key factors that make a market favourable for property auction:
- It has too much relevant product, but buyers are still interested
- It is markedly changing
- There is a lack of a certain type of property, such as houses of character, ones with a view, or seafront houses
- It is an emerging market, where auctioned properties could inspire the sale of other new developments
- There is a recognised high demand within the sellers’ market which can inspire competition amongst potential buyers.
Key factors that influence a seller to consider real estate auction:
- The seller has experience regarding property auctions, and already possesses the necessary mindset
- The seller need to turn over the property in a short period of time,
- The seller may have personal lifestyle changes, such as retirement, break-up or relocation, that may require the quick sale of property
- The seller is experiencing financial difficulties
- The seller knows that an auction will fetch him a fair price
- The seller wishes to liquidise his property assets
- The seller has already purchased another house
- The seller is aware that the property will be sold at a reasonable market price or above
- The seller has an existing listing that will soon expire
Key factors that make a property suitable for listing at auction:
- It is unique, which may encourage competition amongst interested buyers
- It has pre-existing high maintenance costs for the owner
- It is vacant, and thus not earning any revenue
- It is otherwise difficult to appraise, in terms of suitability of other sales options
- It has equity of 25 percent or more.
Selling property through an auction is alternative that provides the benefits of having a specialised agent providing you constant feedback, multiple viewings from a network of 350+ agents and an eventual fair price.
With all of the above knowledge now in hand – do you think your property would make a good auction property? Contact Jeremy Borg Grech on tel:+356 9952 4111, or visit the Malta Property Auction Website