The Hallmarks of a Good Auction Property

To auction or not? When exploring the option of selling your property at an auction, it’s important to consider what might make that particular property suited to the auction process in Malta and Gozo.

Whilst all properties are saleable by auction – from residential property and vacant land through to commercial and industrial real estate – not all property may be best served by being sold at auction, especially if it might only appeal to a narrow market.

Generally, if two of the three parties involved in a property sale – that is the buyers, the seller, and the property itself – are favourable towards the auction, then the auction is the possibility of a suitable sale for that property in Malta or Gozo.

Key factors that make a market favourable for property auction

What are the hallmarks of a good auction property when selling it at an auction?

• It has too many relevant products, but buyers are still interested.
• It is markedly changing.
• There is a lack of a certain type of property, such as houses of character for sale, ones with a view, or seafront houses.
• It is an emerging market, where auctioned properties could inspire the sale of other new developments.
• There is a recognised high demand within the sellers’ market which can inspire competition amongst potential buyers.

Read more about a guide to selling an inherited property like an apartment or a house of character for sale on the property market.

Key factors that influence a seller to consider real estate auction

What are the key factors that influence people to sell their property in Malta at an auction?

• The seller has experience regarding property auctions, and already possesses the necessary mindset.
• The seller need to turn over the property in a short period of time.
• The seller may have personal lifestyle changes, such as retirement, break-up or relocation, that may require the quick sale of property.
• The seller is experiencing financial difficulties.
• The seller knows that an auction will fetch him a fair price.
• The seller wishes to liquidise his property assets.
• The seller has already purchased another house.
• The seller is aware that the property will be sold at a reasonable market price or above.
• The seller has an existing listing that will soon expire.

Key factors that make a property suitable for listing at auction

What are the key factors that make a property in Malta or Gozo for sale at an auction. 

• It is unique, which may encourage competition amongst interested buyers.
• It has pre-existing high maintenance costs for the owner.
• It is vacant, and thus not earning any revenue.
• It is otherwise difficult to appraise, in terms of suitability of other sales options.
• It has equity of 25 per cent or more.

Selling your property through an auction is an alternative that provides the benefits of having a specialised agency providing you with constant feedback, multiple viewings from a network of 350+ agents and an eventual fair price. Explore the benefits of selling your home via an auction.  

With all of the above knowledge now in hand – do you think your property would make a good auction property?