Housing Authority:
Click on each step to view what it entails.
Viewing Properties
After setting your budget and wish list, the next step is property viewings. You can search and view properties with the help of a real estate agent, or you can independently view homes listed directly by the owner. Both methods come with their own advantages and disadvantages. Here is a list of common benefits associated with each buying method:
Real Estate Agent
Efficiency: Since real estate agents typically have a large portfolio of properties, you can communicate your budget and wish list, and the agent will try to find the right property for you or one that matches the closest with your criteria.
Knowledge: Their day-to-day experience in the property market equips them with enough knowledge about which properties to avoid, price recommendations, rules and regulations, market conditions, and trends, among others.
Skilled and Unemotional Negotiators: During the negotiations, your emotions may run high, potentially hindering your chance at getting a good deal. Agents are often skilled negotiators who can assist you in securing a better deal through negotiations on your behalf.
DIRECT FROM OWNER
Potential Savings: Purchasing directly from the owner eliminates intermediary costs, such as real estate agent fees and commissions. This can result in a lower overall property price.
Negotiation: Direct communication with the owner allows you to build a personal relationship, which can offer more control and flexibility during price negotiations.
Potentially Faster Property Transaction: Buying directly from the owner may simplify the process and lead to a quicker transaction, as fewer parties are involved.
While purchasing with the assistance of a real estate agent or directly from the owner remains the most common method in Malta, another option is to use property brokerage services (sensar), which legally can only charge a 1% commission from either party. It is important to note that regardless of which intermediary service you use, they all must have a valid licence to work in the real estate industry. Intermediaries who do not conduct more than two transactions per year do not require a licence.
You can use any of the following online or offline methods to find properties for sale:
Online Methods:
Social media: Facebook Marketplace, Facebook Groups, Facebook Pages, Instagram, TikTok
Websites: Real Estate Agent Websites, Property Broker Websites, Developer Websites
Applications: Real Estate Apps
Offline Methods:
Newspapers
Magazines
Word of Mouth
Visiting Real Estate Agents or Property Brokers in Person
Walking around in areas of interest looking for ‘For Sale’ signs
Once you find a property (or more than one) that meets your criteria and budget, the next step is to schedule a viewing. If you have not engaged a real estate agent, you can contact the owner directly to arrange a visit. Otherwise, your agent will handle the viewing appointments on your behalf.
What should you take with you
when viewing a property:
Considerations
During the property viewing process, you should consider the following factors:
Price: Is the property overpriced or underpriced compared to comparable properties in the same locality/area? A significantly lower asking price may be an indication of significant costs (e.g., renovation) or an indication that something is wrong.
Nearby Listings: Several properties nearby are all listed for sale. This may be an indication of potential issues within the area.
Structural Damages: Structural damages may include structural movement cracks and signs of settlement, deteriorated beams and concrete slabs, as well as cracked masonry ceiling slabs (xorok). While these are not reasons to back out of a potential purchase, you should factor these repair costs into your overall budget. Significant damages could result in costly repairs, so identifying them in advance can help with price negotiations or ensure that all necessary repairs are completed before the purchase. Assistance from an architect is recommended since not all damages are easily visible to the untrained eye.
Water Ingress and Inadequate Waterproofing
Damages to Finishes: Damaged finishes may include signs of humidity, mould growth, insect infestations, and cracked windows.
Suspicious Work: Keep an eye out for any work that appears suspicious. Verify whether the owner has obtained the necessary permits for that work.
Duration of Property on the Market: How long has the property been listed? Extended listing times may suggest overpricing, condition issues, or other potential concerns.
Finishings: Ask the owner or agent for a list of finishes to understand what the price includes. This is especially important for off-plan properties and those sold as finished, as it clarifies whether items like doors, bathrooms, and common area expenses are included.
Expected Move-in Time: Consider the expected move-in time, especially for properties still under construction, as they may have longer waiting periods. Ensure the timeline fits your needs, but always allow some flexibility for potential delays.
Developer Reputation: When purchasing on-plan properties or properties under construction, consider the developer’s reputation. Some developers may have a history of delays or other issues, so you should assess their track record.
Nearby Developments: Check whether there are any planned or potential developments on neighbouring properties or nearby sites.
Third-party Servitudes and Easements: Check if there are any third-party apertures directly or indirectly overlooking the property; any rights of access allowing third parties to enter the property or parts thereof; shared water cisterns, drainage, or water catchment systems; or the passage of third-party services through the property.
Property Age and Last Renovation Date: Older properties without recent renovations may require repairs. Consider the costs for maintenance and upkeep when viewing these properties.
Previous Owners’ Tenure: Properties sold after a short period of ownership may indicate potential issues. However, always ask the owner/agent about the reason for the sale, as there could be other contributing factors, such as financial reasons and divorce, among others.
Issues/Disputes/Ownership Uncertainties: Check for any disputes related to building permits or uncertainties regarding ownership. Purchasing a property with such issues can lead to complications and delays during the process.
Apartments: When viewing apartments, clarify how many units are in the block, whether any units were sold, if there is an active association to join, and any associated costs, including lift maintenance and condominium fees.