What you need to know about selling in a sellers market
Market knowledge means property selling success as a property owner in Malta and Gozo.
When demand outweighs supply in the property game, this tends to create what is referred to as a sellers market. Helpful Indicators of this can be when sale prices are seeming to exceed what properties are listed for, the economy appears robust and healthy, and there are seemingly fewer properties available on the market.
With more people looking to work from home and kitchens turning to classrooms, this is of course great news for those wishing to sell property in Malta. However careful consideration needs to go into managing the sales process to ensure you achieve the best price possible. Whilst some of them seem counter-intuitive, taking some of the below steps can help ensure selling success, and a smooth and lucrative process with your property for sale in Malta.
Preparation as a priority
Before anyone even steps foot in your property, you will want to ensure that it's in good condition to motivate and appeal to potential buyers, so they are more inclined to put in an offer. This means a deep clean, along with taking care of any outstanding maintenance or issues relating to general care of the property.
An inspection of carpets and painting is generally considered a good idea, however don't get caught in the trap of over investing on upkeep in the hopes of securing a higher asking price. Completely stripping and fitting a new bathroom, or other fairly costly additions don't always translate to buyers reaching for their wallet quicker. In fact, as a sellers market generally indicates a lack of supply, buyers are more often inclined to overlook minor issues, and will be focused on securing their dream property in a market where options are limited.
Pricing is everything
The general expectation is that a sellers market allows property owners to seek the highest asking price possible straight off the bat. However doing this can do more harm than good, and understanding pricing strategy can ensure you walk away with a sale that satisfies both you and the buyer.
Conducting market research in your area (available with help from local agents), can help determine the current market rate for properties similar to your own. By looking to put your Maltese property for sale at slightly less than the standard market price is more likely to foster interest, and subsequently invite a bidding war. When this happens, offers from potential buyers can quickly move beyond a higher initial asking price as people fear losing out on a home they have sought after when options are scarce.
This can be further leveraged by making use of fixed viewing times, which raises the chance of more than one buyer visiting the property at a time, and fostering a sense of competition and urgency.
Assistance from Agents
Not only will agents have a detailed knowledge of the local market, but they can also help in formulating a successful sales strategy that works in your favour. This can include understanding appraisals and how this impacts on your asking price, as well as suggesting whic contingencies in the deal are re-evaluated to help secure the sale.
As a seller, you want to offer as few contingencies as possible, as this will reduce the risk for the buyer and yourself, making the likelihood of a sale much higher. Common contingencies are those relating to appraisals (where the home must sell for an equal or higher value than the appraisal for it to go through), or being part of a chain (where the buyer's property must sell before they move forward on an offer for a new home). Reducing or removing contingencies such as these can often result in a swift, successful sale of property in Malta.
Ultimately you want to look at the way in which you translate buyer offers and how this will impact selling your property in Malta. The highest offer doesn’t necessarily mean it’s the best for you. This could require higher loans for the buyer, meaning a higher risk of refusal, and you being pushed back to market. Cash offers are therefore generally perceived as safer than those buyers requiring finance.
You should also look at exit strategies, in the form of next steps after accepting an offer. In a sellers market, properties generally move pretty quickly, and you don't want to get caught having to rent for an extended period of time as you haven't thought about your own property purchase in a market with fewer offerings.
With the largest database of properties across the Maltese islands, you can rest assured that buyers turn to us first when seeking to purchase a new property, no matter the state of the market. Contact any of our dozens of branches, with a guarantee of close and personalised service to help you get the most out of your property for sale in Malta.