Sell Your Property

SELLING YOUR HOME

When it comes to selling your home there are a number of things which you should take into consideration if you want a successful and affordable sale. Increasing the saleability of your home means looking at the condition of the property and the costs involved in selling property, to ensure that you get a fair price and avoid excessive expenses in order to make your sale.

WHY ARE YOU SELLING YOUR HOUSE?

When selling property for the first time, make sure that you know what your goal is. We asked a few of our past clients why they sold their property and what they hoped to get out of it, and the answers fell into two categories:

1. Maximizing the value of the property
2. Selling the property as quickly as possible

There are lots of factors involved:

1. The quality of the property itself and its location
2. Selling at the right time – demand on the market for that location and property type
3. Finding the best buyer and understanding how to match what they want
4. Knowing the proper market value and finding buyers who match the asking price
5. Getting lots of requests from buyers so as to be in a better negotiating position
6. Avoiding mistakes when selling (knowing the legal procedure)

Our clients all stressed that it’s very important that when selling your first property you don’t end up feeling like you could have gotten more afterward – both you as the seller and the buyer should walk away feeling like you got the best deal possible.

For instance, if you’re selling a property you bought as a pure investment, your goal is probably to maximize your return. If you’re moving to another country or are buying a second home in a different location, your goal should be to sell fast. These different goals often overlap but knowing what your priority is as a property seller is crucial so you can work with your agent to adjust your marketing strategy and know what buyers are looking for.

EXPERT TIPS TO SELL YOUR HOME QUICKLY

In our experience, it takes some effort to sell a property. Once you have made the decision to sell, it is in your best interest to prepare your property for market attention. Here are a few quick tips for putting your place up for sale and making sure that it’s sold quickly:

• First Impressions Count. Make your home as appealing as possible to potential buyers, present it in top shape – all repairs must be completed before any buyer visits your home. Be sure to take care of small things such as squeaky doors, stubborn stains, and missing keys.
• Give your property a facelift. You should also carry out any necessary aesthetic work, such as painting and cleaning. This will improve saleability and increase the value of your home. Paint any peeling walls, remove mold spots, treat any insect infestations, fix broken windows/doors/cracked tiles. You won’t get the chance for a second impression without a good first impression.
• In-depth renovation. If time permits, consider carrying out more in-depth improvements that will increase both the value and the saleability of your home, such as replacement windows, a new kitchen or bathroom, and improved heating within the home. Often, taking out a home improvement loan to carry out these works will allow you to recoup costs through the increase in the value of the home. Sometimes, these repairs can be included in the promise of sale document, so getting them out of the way early puts you at an advantage.
• Clean & tidy. Always keep your home clean & tidy. Dirt does not appeal to anyone. Studies have shown that cluttered and dirty property will take longer to sell, as potential buyers cannot imagine themselves in the home. For the same reason, put away any family photos.
• Get your agent involved. Once your home is shipshape and ready to go, your estate agent will be in a much better position to help you sell your property. Your agent will meet up with you and take photos in order to bring your property to the market. The agent will advise you on valuation, asking price, and how long it may take to sell – issues which are different in each case. If you have any questions or concerns, do speak to your agent as they will most likely have an answer or be in a position to help you out. Dhalia consultants are trained to give an accurate valuation, and their knowledge of the market allows them to give an accurate estimate of time on the market.

KNOW THE VALUE OF YOUR PROPERTY BEFORE SELLING

The most important part of the selling process is the asking price. As a seller, you want to get a fair price for your property and recoup any expenses incurred while bringing it to market.

At Dhalia Real Estate Services, all of our consultants are highly trained and keep up to date with the state of the property market. Each consultant specialises in a particular geographic area of Malta, which allows them to constantly update their market information and present clients with highly accurate estimates. As professional property consultants with experience in both buying and selling, Dhalia estate agents know the ins and outs of the business. Their focus is on all aspects of selling property, from the legal requirements to the architectural and environmental regulations. To put your mind at rest and be sure to get help from the best, you can trust the professionals at Dhalia Real Estate Services.

Once you decide to list your property with Dhalia, one of our property consultants will visit the property in order to prepare a valuation. This service is free of charge and is determined with reference to the property’s location, size, type, age, and in-depth market analysis, as well as other factors. The relationship between the property’s valuation and the asking price is often the determining factor when it comes to how much time the property spends on the market. Your consultant will be able to guide you in selecting the most appropriate asking price, in order to avoid excessive time on market-leading to unnecessary revisions in the asking price.

WORKING WITH REAL ESTATE AGENCIES TO SELL YOUR PROPERTY

When placing your property on the market you may run the risk of over-pricing or under-pricing it. Overpricing normally leads to a reduction in price and imposes a delay in selling your property. You may want to avoid paying agency fees. Do keep in mind that you could end up with less in your pocket at the end of the day, through extended time on the market and lack of negotiation skills. As an established real estate agency, we provide considerable experience and skill in assessing market value. This enables us to conduct a competitive market analysis thus providing you with an accurate valuation of your property.

The advantage of using an agency to sell your property is undoubtedly the level of experience one brings to the table. Most people do not know the details of what is required when transferring property. Details such as the energy performance certificate, tax requirements, and what demands a buyer can make can be challenging.

If you are thinking of using an agency, you now must decide whether you will be listing your property with only one agency (sole agency, as it is called in the business), or whether you will list with many agencies (known as open agency). If you choose to sell your home in a sole agency agreement with Dhalia, then this gives the agency an exclusive right to promote the property on the market and dedicate more resources to it, while the agency fee is lower than the standard, at 3.5%. A sole agency agreement is often limited to a timeframe, not less than 3 months. Over 70% of properties placed with Dhalia on a sole agency basis have been sold. With an open agency agreement, multiple agencies will have access to the property and the agency fee is usually set at 5%.

THE SELLING PROCESS

Dhalia consultants have a network of clients that is refreshed each day with new inquiries. We also have a robust and effective marketing strategy to engage property buyers. Every day, we receive a constant high volume of property inquiries. These requests are processed and sent to our property consultants.
All these efforts result in viewings of your property. After securing a viewing request, the consultant will give you a call to arrange a viewing appointment at a date and time that is convenient for you. During the appointment, the consultant will show your property to potential buyers.
After the viewing, the consultant will receive feedback from the potential buyers. If everything goes smoothly, and the buyers are interested, then the negotiation process begins. At this point, the consultant negotiates a fair price that suits both parties.

When both parties have come to an agreement on the price, a promise of sale agreement is drawn up. This binds the parties to the transaction on the satisfaction of certain terms and conditions. At this point, a 10% deposit is paid by the buyer and held by the notary. The promise of sale agreement will be limited to a term, during which the notary carries out searches on the property to determine the legal title. At the end of the term, and once both parties have fulfilled the conditions set out in the promise of sale, the final deed can be signed and the ownership of the property is transferred.

ENERGY PERFORMANCE CERTIFICATE

When selling your property, an energy performance certificate is required by law and must be presented to the buyer. This document informs the buyer about the energy performance of a building. It also gives recommendations for cost-effective improvement to upgrade its current energy efficiency class. Certificates are prepared by a qualified assessor who is registered with the Building Regulation Office. The certificate is valid for 10 years unless there are significant changes made to the building. The assessment will take into consideration the property’s construction, finishing material, the quality of insulation, and double or triple glazing.

More information can be found here.

TAX

The tax that is charged on the sale of a property is called withholding tax or property transfer tax. This tax is paid to the notary on the signing of the final deed, and the notary passes it on to the Inland Revenue Department. The seller must pay the final withholding tax, usually amounting to 8% of the value of the property. However, there are different rates for different situations.

Details of this regulation (last updated on: 19/05/2020) can be found here.

PROPERTY FLIPPING IN MALTA

Property flipping is the business of acquiring a property and adding value to it before swiftly selling it for a profit. Property flippers look for a property with potential that may require some work to bring it up to standard. Often, they limit their search to areas that are highly in demand. This kind of arrangement works well for those with a good amount of capital readily available, however, bridge loans are also common. Flippers can benefit from the wide-ranging network of clients available through Dhalia, from finding their property to selling it quickly.