Buying Property Direct From The Owner in Malta
There are many risks in buying a home or property direct from the owner without a Real Estate Agent in Malta and Gozo.
Recently, a lot has been written about the various risks involved in being a private home seller here in Malta, but not as much about the buyer's risk of purchasing direct from an owner. Unfortunately, these risks are also considerable, especially in Malta and Gozo.
If you are contemplating buying a home in Malta, the chances are you have wondered if you need the services of a Maltese real estate agent or not.
You may have seen the property of your dreams in Facebooks marketplace or other social media.
The property looks like a bargain! Buying Property Direct from The Owner in Malta
If the property is for sale directly from the owner and looks too good to be true, buyer beware!
If the property looks too good to be true, it probably is!
In Malta or anywhere in the world, buying a property is maybe the most significant transaction you and your family will ever have to negotiate.
The growth of the real estate industry during the past few years in Malta and now Gozo has seen a massive increase in the amounts of real estate agents, property brokers and property consultants. Their primary role is to act as an intermediary in negotiating and arranging transactions involving the acquiring or disposing, or leasing various types of property.
Real estate agents worldwide are often portrayed negatively, especially in films and TV, which naturally leads to the idea that they may be untrustworthy. Generally, this is not true.
There are also no laws in Malta requiring you to use a real estate agent, so what's the point?
The reality is, buying a home in Malta or Gozo without an authorised real estate agent can carry various risks and lead to issues that many people are not aware of.
In Malta and Gozo, there are plenty of professional, hard-working agents in Malta who focus on what is best for their clients. The benefits of having a reliable buyer's agent are immeasurable. Excel Homes Real Estate agents are among those agents.
You should be aware of the risks of buying a property in Malta before you decide to buy without Maltese Real Estate representation because you may discover that the potential problems of dealing with the purchase directly from the property owner far outweigh the possible benefits.
Buying a home in Malta or Gozo without a real estate agent can be disastrous in many ways, financially and legally, if you're not very careful!
Those thinking of buying a property in Malta or Gozo need to bear a few things in mind. First, an exceptional buyer's agent represents your best interests. The agent owes the buyer of the Malta Property undivided loyalty, confidentiality, reasonable care, and obedience to lawful Maltese Real Estate instruction, and of course, accountability.
The best buyer's agents here in Malta put your needs above their own.
When you buy property direct from the owner and purchase your home without an agent, you are at a disadvantage.
The biggest problems occur when a buyer tries to purchase a Malta Property for sale direct from the owner without a Real Estate Agent.
Of course, Maltese homeowners selling without a Real Estate Agent usually do so to save money on a commission. However, there are pros and cons of selling a home in Malta without a real estate agent, and the same is true when buying one.
Here are some tips on why you should think twice about Buying A Property Direct from the owner Here in Malta
Overpaying for Malta or Gozo Property.
The price of the Property in Malta or Gozo is decided by the owner, who may or may not have any idea what the house's actual value is.
Homeowners in Malta and elsewhere are notorious for overestimating the value of their homes. You don't hear many undervaluing their home, do you?
The house owner in Malta could ask for any price, and you will not have a way to verify the validity of that price on your own.
An excellent real estate agent in Malta will do the comparables with years of data at their disposal. Those buying a property direct from the owner do not benefit from this valuable information.
Those selling A property directly from the owner for sale via various channels usually use fundamental ways of coming up with an asking price, including social media and gossip. Some sellers even guess a value based on what they need or want for their home.
Disclosure Issues Buying Property Direct from The Owner in Malta
If a professional real estate agent knows about some problem with a home here in Malta, it must be disclosed to the purchaser! Unfortunately, there are few examples where a real estate agent in Malta can avoid disclosing a condition that would make a buyer think again about purchasing a house in Malta.
For example, if the Maltese property seller's basement floods often, a Malta real estate agent should disclose this and any other essential information to any potential buyer who may be interested in the property for sale.
Those selling a property direct from the owner may even market their home as being sold as-is. However, a huge red flag should go up if you purchase a Malta home from a for sale by owner and they are selling as-is!
Without an agent, you will also not be aware of the different types of architectural inspections that are advisable for the area of Malta or Gozo. Many old houses of character and farmhouses were built hundreds of years ago. These properties will usually have flat roofs and unique construction methods peculiar to Malta and Gozo.
You may need to do a damp inspection, a radon inspection, an inspection for insect infestation, or some other special inspection. Again, your Real Estate Agent can help with these.
Location, Location, Location.
Knowing how to pick the right neighbourhood in Malta and Gozo is essential. The district you choose can significantly impact the value of your house. A few metres away, a property can be substantially higher or lower in value.
You are not just buying a physical home; you are buying property in a particular area of Malta.
A knowledgeable Maltese buyers agent helps give you the big picture, whether a small village or a larger town in Malta such as Valletta.
Valuation Problems Buying Property Direct from The Owner in Malta
Can you imagine having your home under agreement or Promise of Sale as it is called in Malta, getting an offer accepted on a for sale by owner only to find out if the bank does not agree with the valuation?
Real estate law in Malta is complex and varies from year to year, and is continually updated.
You will need a Maltese Notary to help you with the sale. There are many pitfalls that if you are buying property direct from the owner, you need to be aware of that the seller will probably not tell you.
You are paying too much for your home in Malta. Buying Property Direct from The Owner in Malta
It is unlikely that you have the ability or skill to determine the true value of the homes you are looking at unless, of course, you have real estate experience. With an agent in Malta, you have free advice on when a property is overvalued.
Without an estate agent here in Malta, you are extremely likely to pay more for a home than you would with an agent working for the seller. After all, part of the seller's agent's job is to get their client the most money!
Negotiating it's an art.
Real estate agents negotiate for every client they work with, month after month, year after year.
In the long run, you are far better at employing the services using an authorised agent rather than buying a property directly from the owner here in Malta. It will give you peace of mind and save you money.