When beginning the search for a property to purchase, it is crucial to inquire about various aspects, including those that may not seem significant initially. The criteria may differ depending on whether you plan to reside in the property or use it as an investment for renting out. However, the key question to ask yourself is: “Will it generate profit and prove to be a sound long-term investment?” The ideal response to this query should always be a resounding “Yes!”
How long has the property been on the market?
This will help you understand how well the property has been received in the market. If the property hasn’t been advertised for a long time, it will be challenging to use its exposure period as a bargaining tool for a better price. If a property has been on the market for an extended period, it’s important to question why that is the case. This leads us to other important considerations:
Is the asking price realistic and competitive?
The agent should provide you with a truthful response because it is not beneficial for them to endorse an exaggerated price for a property that is unlikely to sell and has no purpose. A reliable agent will verify if the property is priced accurately.
Are there other interested buyers or offers on the property?
This will help you determine if you need to act quickly to secure the property and also impact the amount you are prepared to offer.
What is the timeline for the sale of the property?
If the seller is in a hurry to sell and wants to do so quickly, they might be more open to considering a lower, yet still fair, offer.
Why are the owners selling?
Various factors, such as the seller purchasing another property, downsizing, going through a divorce, and more, could contribute to their decision to sell. It’s important to maintain confidentiality regarding any information you receive. These circumstances may impact the seller’s willingness to accept an offer, depending on the urgency of their situation.
What direction is the home facing?
The orientation of the property can impact the amount of natural light and warmth it receives daily, influencing your yearly electricity usage. Inquire about features like insulation, double-glazed windows, smart technology, and other relevant factors.
What are the selling prices of comparable properties in the vicinity
Any reputable agent would have conducted a thorough analysis of comparable properties in the vicinity and should be able to provide information on the selling prices of similar properties.
Are there any concerns about the property’s ownership status?
The agent will have access to the historical ownership records of the property through due diligence and research. If there are any uncertainties, they can be resolved with the assistance of a notary public or the deeds office.
Is there a property report prepared by an architect available?
The agent or owner is not required to furnish you with this report. If you are interested in purchasing the property, you will need to hire a specialist like this yourself.
Are the views guaranteed?
This is a favourite of many a buyer but alas, no views are guaranteed in Malta or Gozo.
What is included in the sale?
Before making an offer, request a list of items that will be part of the sale and inspect their condition. This may encompass fixtures, fittings, appliances, furniture, and other relevant items.
What deposit is expected?
This is usually 10% of the agreed purchase price for EU nationals and 20% for non EU nationals and a good agent will be able to tell you whether a seller is open to being more flexible, especially with more expensive properties.
Are you able to choose your own notary?
The agent will already have a notary in mind and to keep things simple and expedite a sale, it is better to keep it under one roof, but as a buyer you have the right to appoint the notary of your choice.
Are there any extra costs on the purchase price?
The agent can give you approximate figures or percentages related to the property’s purchase, but since these can vary, the agent will need to conduct some research and consult with the notary and seller to confirm the exact amounts.
Can you negotiate with the seller to fix a few things when you make an offer to purchase?
The agent can discuss this as part of the sales agreement with the seller, who is usually open to it. Trust the agent to handle this, but if you decide to make an offer, ensure that it is included in all the contracts.
How long does it take for the entire process?
If you require a specific timeline, your agent can determine the duration based on the intricacies of the property you wish to purchase. This process is typically individualized, as each property is subject to its own set of regulations and conditions.
Are there any extra levies or ground rent?
This is often overlooked by many individuals and only becomes apparent when a bill is received at a later stage. Your agent can inform you about the presence of ground rent on the property and whether the apartment is subject to the recent regulations mandating the appointment of a managing agent by law for blocks of apartments with more than 4 units.
Get in touch with Malta Invest for any assistance
