Estate agents use a formula which is normally more accurate to the market conditions than an architect’s valutation in Malta. This is due to the fact that architects are not always knowledgeable of what has sold in the previous 6 months in that particular area, or that particular type of property. This gives the agents an advantage, since they have a vast database and share such information between offices / agents. To achieve this expertise for free, ask the people where you live - ask around and see what has sold in your street or neighbourhood over the past year.
To set a price without an agent’s or architect’s help in Malta, it is recommended to start by seeing advertisements of the same type of property, ideally in the same area OR a similar type of area. In the sense that if you have a flat in Zurrieq, you cannot compare it with the same square metre-age of a seafront flat in Sliema!
Location plays a very important role in the price of a particular property in Malta! If you purchased the property in the last 10 years, it is also easy to add on value to the original purchase price by following the growth percentages published by the Central Bank of Malta since the year 2000. These are separated by apartments, maisonettes, terraced houses and others... For more information about these statistics, follow the link to Malta property prices at the bottom of this page!
Property is initially valuated on the size of the land it is on, the age of the property, the type of maintenance and upgrading it had in recent years, and then adjusted to the current market conditions. This means that it is the market that determines the price, and unless you find someone willing to pay such price, the value of that property would normally be less – it’s as simple as that.
However this doesn’t mean you should sell below the actual value it holds!
Once you identify a range of what your property might be worth, you can add or reduce that figure depending on how many positives or negatives it has got. Some examples of these are below:
| Positives Good Location Uniqueness* Nice practical layout Large Garden/back yard Nice views Private Excellent condition Above average Size Freehold Garage/drive/easy to park Regular plot Double/Big frontage (faccata) Ensuite/upstairs bathroom |
Negatives Not ideal location Many similar properties on the market Interconnected rooms/bedrooms (passaggia) No garden/terrace/yards Obstructed views Neighbours overlooking onto you Needs work / modernisation Below average Size (internal and external) Temporary ground rent Parking problems Irregular plot Small frontage Downstairs only bathroom |
Compare the above with what is in competition with you for the same price range...
* Other things that make a property unique and valued more than other similar ones are:
Cul de sac location, corner property, In a square (pjazza), Large windows (very bright), balconies, split levels, airspace etc.
The type of finishing in a property also adds value. Some finishing touches that add value might be:
Air-conditioning as well heating, marble floors, recently modernised kitchens with good appliances, new bathrooms, Cinema and audio systems, Fireplaces, Intercoms, alarms, double glazing, gypsum, waterproofing on roof, etc.
In Houses of Character, the more of these features, the more unique the property is:
Sala Nobile, Arches, Balusters, Beams (Steel), Beams (Wooden), Cart room entrance (remissa), Corbelling (Kileb), Cobbled pathways, Double walls, Original Flagstones, Frescoes, Mill room, Minstrel galleries, Original timber doors, Peep box, Stone coving mangers, Stone Spiral staircase, Stone slabs (Xorok), Stone ornaments/sculptures, Wall cupboards, other historic features...
Normally, haggling is common practice in Malta, and vendors tend to round up figures or add a few thousands to what they want to sell at. This can vary between 3-10% on top of their final amount they would settle at. This can however discourage prospective buyers to visit the property if the extra negotiating amount is too high and takes it ‘out of range’. Always keep in mind that buyers will compare adverts. So be careful not to overprice unless your property is truly unique and there’s no other like it! It’s also good practice to see what buyers can get at the price you set, not just in your type of property category but on all the property market! So it is wise not to set your price at the limit from the start, but not go too high either!
On a final note remember that buyers like to buy from people they like! So be nice to each person that comes for a tour. Some experts say that the smell of fresh flowers and freshly brewed coffee triggers “homely” feelings in prospective purchasers! It is imperative to have the whole house in good order without too much clutter around when interested people visit! Another good tip might be that your tour should start from the least nice rooms like bedrooms and end in the kitchen/living, as the last room is what the buyers would remember the most!
Best of luck from FSBO.com.mt!