Tag Archives: property

The ins and outs of property auctioneering

Malta Property Auctioneers specialises in the sale by auction of unique and distinguished properties offered on behalf of sellers who prefer a date-certain sale to a lengthy sale process filled with market uncertainties. Auctions are implemented with the highest degree of professionalism at the local, national and global level. Malta Property Auctioneers only offers properties which are in demand – paying close attention to luxury and unique properties.
Malta Property Auctioneers, founded on an extensive portfolio of experience in real estate, is the only property auction firm in Malta. The firm’s experience is not based on traditional brokerage methods alone. We have highly trained staff that is knowledgeable about the advantages the auction method brings about while having vast experience in real estate trends in Malta and access to modern marketing tools. Working towards their 36th property auction, Malta Property Auctioneers has set the tone for this specialized method of transferring property at a faster pace.

Malta Property Auctioneers does not conduct ‘distressed’ auctions only. The firm does, however, offer exceptional purchasing opportunities to qualified buyers. Every transaction is a fair, speedy and uncomplicated process. In fact, many of our clients favour auctions for acquiring assets for various reasons, some reasons being:

• The expeditious sale process auctions guarantee. The process often lasts less than 90 days from POS to contract.
• The clearly defined parameters for the date of sale, terms and conditions of sale, offered by Malta Property Auctioneers.
• Our elimination of contingencies and prolonged negotiations
• The access Malta Property Auctioneers provides to serious, qualified buyers on a local, national and global level.

Auction vendors cannot change their mind at the last minute if the reserve price is met.
There are several other benefits to using the auction process. We realize that some people may have their doubts about the procedures and general terminology about the auction, so we have tried to answer some of the most frequently asked questions here.

Why is the property up for auction?

Sellers are motivated to sell by auction for many plausible reasons. The number one reason a seller chooses to offer their property at auction is that it promises a quick sale. There are times when people relocate or purchase a larger or smaller property and do not want to have to pay two bank loans while waiting for the real estate agent to produce an offer. Many times, the property is an inheritance and the heirs just want to cash out and go their separate ways. There are also times when the true value of the property is difficult to evaluate even by the most experienced of agents and the only way to really find out what the property is worth, is to put it up for auction and let the buyers express what they are willing to pay.

What can potential bidders learn about auction properties before bidding?
All properties that go under the hammer are advertised regularly through various mediums, including local newspapers, magazines and online websites. One can also register online to receive regular updates as well as auction catalogues 30 days prior to each auction. These allow people to determine in advance which properties they wish to view and to get an idea of the maximum price they may be willing to pay. Naturally, if there is a property that interests you, you may call the company and make an appointment for a viewing. Sometimes, open houses are held so potential bidders can walk through the properties well ahead of bidding. Typically, pre-auction offers are accepted, meaning that the sale could actually go ahead before auction day provided that the offer is accepted by the vendor. The auctioneer usually conducts preliminary searches on the property and will have information packs available on request. A blank promise of sale, with the details of the property itself, is also included. If one wishes to make a property survey or have an architect inspect a property prior to the auction, this is permitted at an additional cost.

Is there a ‘reserve’?
Yes, almost all the properties on auction have a set reserve price. A reserve price is a price below which the lot may not be sold. The auctioneer has the right to sell the property at the reserve price or above. The reserve price is established between the auctioneers and the vendor and it is kept confidential.

The property I was bidding for didn’t reach its reserve price. What will happen to it now?
If the property doesn’t reach the reserve price, it will not be sold under the hammer. However, if you are interested in the property, we advise you to speak to the auctioneer following the auction and submit your best offer. We try to make sure our vendors are contactable on the night of the auction and, if you come to a compromise on the price, it will be possible to sign a promise of sale.

I have a property to sell, what expenses am I responsible for?
Like with all property sales in Malta, the only expense you are responsible for – besides property tax – is a pre-set commission on the sale of the property. If the property is not sold, then no commission is due. The auctioneer carries the expense of all the marketing and advertising, as well as the notarial fees for drawing up the pre-required paperwork.

What factors determine the success of an auction?
1. The desirability of the property being sold. This includes elements such as location, property type, state of condition, surrounding properties and available outdoor space.
2. An attractive guide price which will attract potential purchasers to view the property.
3. Realistic expectations on the part of the seller.
4. Selecting an experienced auctioneer with vast experience in the local market.
5. Conducting the auction in a professional manner and following up until the closing stage.
6. An assertive marketing and advertising plan geared to prospective purchasers.

Property on auction in the words of Pierre Faure

The traditional way of searching multiple real estate listings online and working with many different real estate agents can be time wasting, tedious and nerve-racking – which in turn, could lead a person into making hasty decisions. A new channel for acquiring property has been gaining popularity rapidly in Malta – auctions! – Auctions are a more transparent process through which a potential purchaser can view properties at their true market value. Malta property auctioneers is the first and only auction house in Malta and Gozo which offers the personalized service you deserve. “On auction, as the hammer falls, you can find yourself walking away with an amazing deal! A property listed on an open agency can easily be sold for up to 30% less than its original listing price. We spend a lot of time and energy on singling out vendors who are ready to sell their property at a reasonable price and sometimes, even at a reduced price given that the property is sold within a short period of time.

There are a number of reasons why a person might wish to sell their property quickly. Bank repossessions, marriage disputes, family feuds and inheritance are all possible causes but some vendors are simply individuals seeking to sell their property at true market value and do not want to have their property on the market for years on end. These are the kinds of vendors Malta Property Auctioneers seeks out in order to offer its clients unique investment opportunities and a fair chance to cut a good deal.

With an auction, a reserve price – relatively below market value – is usually set. Potential purchasers are invited to view the properties beforehand and may then, either place an offer immediately or wait for auction day to do so. Over the last twenty-five years, property value in Malta and Gozo has increased tremendously sometimes by 20 to 25% in one year, not only due to the demand but also because of finite land on the island.

The world economy has been a disaster over the last three years but Malta’s property value has been recorded to only have come down by a mere 13-15%, making it a great time to purchase a property. In 2010, €47 million worth of property was placed on our auctions. In 2011, this went up to €51 million and over €25 million in the first six months of 2012. Many of the properties placed on auction sell within weeks of being listed and the reason for this success boils down to the fact that people feel comfortable knowing they are getting a fair deal. The values of properties listed on Malta Property Auctioneers vary from €150,000 to €3 million, as we cover everything from luxury villas to small apartments. If there’s any particular property you’re interested in, make sure to ask us about them. You never know – you might grab yourself a great deal!

Going once, going twice… An interview with Pierre Faure

Why buy a property via auction?

An auction house specializes in the sale by auction of unique and distinguished properties offered on behalf of sellers who prefer a date-certain sale in comparison to a more lengthy sale process filled with market uncertainties. In most cases, the vendor of the property is more willing to sacrifice on price than time.

There are several reasons why one might be in a hurry to sell a property, some being: bank repossessions, inheritance, purchase of another property, relocation, marriage disputes, etc.

Advice and consultation on permanent residency for high network individuals, financing, investment opportunities and personal attention is given to each individual client.

Auctions are implemented with the highest degree of professionalism at the local, national and global level. Malta Property Auctioneers only offers properties which are in demand and pays special focus on luxury and unique properties.

What type of properties are listed at auction?
Anything from luxury villas to small one bedroom apartments can be found during any of the four auctions held each year. The Malta Property Auctioneers experience is not based on traditional brokerage methods alone, moreover, it has highly trained staff that are highly knowledgeable about the advantages that the auction method holds.

What can potential bidders learn about auction properties before bidding?
All properties that go under the hammer are advertised regularly through various mediums, including local newspapers, magazines and online websites. Interested parties can also register online to receive regular updates as well as auction catalogues 30 days prior to each auction. This allows people to determine in advance which properties they wish to view and get an idea of their maximum price. Typically, pre-auction offers are accepted – meaning that the sale could go through ahead of the auction provided that the offer is accepted by the vendor.

The auctioneer will conduct preliminary searches on each property and will compile information packs on each lot – which would include property plans and permits. These would be made available on request. A blank promise of sale, enclosing the details of the property itself, would also be included. If one wishes to make property survey or have an architect inspect a property prior to bidding, this is permitted at a specified cost.


Mr Pierre Faure, founder of Malta Property Auctioneers, organised his first auction early in 2007 and, since then, has never looked back. Working towards their 36th property auction, Malta Property Auctioneers has lots placed on auction in Malta and Gozo. Properties that reach up to a total value of approximately €100 million each year. More and more foreign and local purchasers are seeking this new trend in real estate.

Over fifty million euros in property value placed on auction in 2010

Malta Property Auctioneers has been progressively developing itself to become the leading agent in auction marketing. Martin Vella meets Pierre Faure to learn why trust and reliability are the keys to sedimenting an established property auctioneer.

EDITOR’S NOTE Pierre Faure, founder and Managing Director of the company, has been in the business of selling real estate since 1980. He spent several years working in the field in Canada, where he won several awards; including the prestigious Award of Merit for four consecutive years. Locally, he is renowned for his trustworthiness, go-getter attitude and out-of-the-box thinking.

CORPORATE BRIEF Malta Property Auctioneers Ltd. is the first and only company in Malta that truly specializes in the sale of property by auction. MPA offers a professional service with highly trained staff, qualified to give professional evaluations on any type of property, including residential and commercial real estate. MPA offers experienced service as well as the tools required to get all kinds of property sold. All of this while offering the best value of properties on the island.

As the hammer drops, you will find yourself walking away with an amazing deal. Property sales by auction are an exciting activity with interesting results. This public sale forms part of the Malta Property Auctioneers’ circuit run by Pierre Faure himself.

Mr Faure has been in the real estate business for over 30 years now and first established his career from a small retail outlet in Swieqi. “The reason for the success of auctions is that people know they are getting a good product for the right value. The seller does not wait for an offer because it is auctioned and the best bidder gets it. The buyer also gets the best value for the property in a competitive market,” explains Mr Faure. “Actually, many of our properties are upmarket properties from villas to large seafront apartments.”

In 1984, Pierre left for Canada and went to University to get his degree in real estate – which is a legal prerequisite for anyone wanting to sell property in Toronto. Evaluating property, sales and marketing were just part of the curriculum. Pierre then joined one of the largest real estate companies in North America – Homelife Real Estate. From 1987 all through 1993, Pierre won several achievement awards for being the top sales executive in his office and for four consecutive years he also received awards for being one of the top ten sales executives in all of North America.

“We integrate our expertise and knowledge in auction marketing to further enhance Pierre Faure’s team and to focus on high-end, up-market property. The property auction process is a fast and transparent transaction and generally, both the vendor and the purchaser end up getting a good deal. The vendor gets a fast unconditional sale and the purchaser gets a guaranteed ‘good value property’ which he himself has bided for,” asserts Pierre.

“The staff at Malta Property Auctioneers has years of experience and is well trained in giving a professional evaluation of any type of property. At Malta Property Auctioneers we offer a genuine evaluation by giving the vendors a comparison approach on their property,” says Faure.

In 1994, Mr Faure returned back to Malta and soon after opened his own real estate company – Pierre Faure Real Estate – located at the Westin Dragonara Resort. In 2006, Pierre moved on to opening the first property auction house in Malta – Malta Property Auctioneers.

“A staggering amount of €51 million in property value was placed on auction in 2010 in comparison to the €47 million of the previous year,” confirmed Mr Faure. “Every year, we have had an incredible increase in interest in the sale of property by auction and I am not surprised,” Pierre stated during our interview.

Pierre was quite eager to tell me, “what vendors need is less talk and lots of action on the part of the agent – there is no doubt in anyone’s mind that we mean business. We, at Malta Property Auctioneers, acquire the right action through a well-organised marketing campaign. Naturally, this can be quite expensive. We put our money where our mouth is and we invest heavily to advertise and expose the properties that we truly believe in. After all, this is what selling property is all about. Remember we only concentrate on 30 to 40 lots at a time.”

Luxury villas and apartments, converted and unconverted houses of character and even commercial and investment opportunities are expected to go under the hammer on auction day. 80% of properties listed on auction are typically sold. MPA’s next auction will be held at The Westin Dragonara on Saturday 5th March, where both vendors and buyers are guaranteed to find the right property at the right price.


  •  How do I list or buy a property on auction?
    The seller of the property and the auctioneer will agree on the lowest selling price the vendor would accept, this is referred to as a Reserve Price. The potential purchaser views the property prior to the auction. The purchaser can then either decide to wait for the auction day to place an offer or go ahead with it immediately.
  • If the offer is accepted by the vendor, a Preliminary Agreement is signed. Is it just vendors with financial difficulties that list their properties on auction?
    “Definitely not,” assures Pierre Faure. “Our properties on auction are extremely well priced because the vendor wants to sell quickly, without the hassle of a long-delayed sale.
  • Can real estate agents sell their properties on Auction?
    “Absolutely yes,” declares Pierre. What’s most important to us, is that the property is sold and that both the vendor and purchaser are happy.”
  • How would I benefit from listing my property on Auction rather than listing it with a real estate company?
    It’s common knowledge that the more you advertise a property, the better chances it has of being sold.
  • Malta Property Auctioneers only concentrates and advertises 30 to 40 properties at a time, dedicating all of its resources to a select few options. What type of exposure do you give each individual property on Auction?
    MPA extensively markets each property through various types of media which, in turn, generates the required levels of interest from prospective purchasers. MPA’s marketing campaign includes; a full-colour auction catalogue, adverts in local newspapers – as well as local & foreign magazines, 20,000 mail shots to a selected database of clients, PR articles, TV promotion and internet adverts, just to mention a few.

Exquisite Detached Villa – Ready to move into – For sale by Auction

Moving house is very often the most stressful time in our lives, however, refurbishing a 1970’s villa is way more stressful than that, especially on an island renowned for slow, undependable workers. Chasing workmen, tile-layers, suppliers and acting as project manager is no easy task especially whilst simultaneously juggling a full time job plus wife and kids. For this reason, its not often that a refurbished villa comes on the market at a young stage of the property’s new life, especially one that has been painstakingly restored and finished to very high standards.

7157 resized (2)

BEFORE

DSC_3748 (Small)

NOW

 Malta Property Auctioneers are very proud to be appointed as exclusive agents for this recently refurbished detached villa with pool in the sought after area of Monte Rosa Gardens in Mensija (l/o San Gwann).

When the current owner purchased the property some 30 months ago, there was very little to please the eye. Dated apertures, chipped floor tiles, a falling apart kitchen and a layout not very fitting for today’s lifestyle. With a vivid imagination the owner decided to take on a project to give this property the new life it deserves. Several months, hundreds of hours of hard work, and plenty of arguments (with both wife and workers) later, and the property is unrecognizable.

Standing outside the property one immediately notices that the property has been completely re-plastered and painted, the apertures have all been changed to top quality double glazing , the main door restored to new life and the surrounding gardens re-tiled as well as the use of astro-turf to create a perfect play area for the kids. The inside has been equally cared for – the property, which was gutted to its innermost skeleton is now finished to perfect detail using a wonderful mix of textures and materials. Underfloor heating as well as air-conditioning throughout are only some of the extras included. The property boasts two living areas (one for the adults and one for the kids), a private office or study, a wonderful kitchen (see pic above) and dining area all leading onto the pool, bar and deck/lounge area, which is an incredibly private space.

DSC_3830 (Small) DSC_3796 (Small) DSC_3777_pe (Small) DSC_3779_pe (Small)

An extension has been built to make space for a 4th double bedroom (2 of which are ensuite and main enjoying a seriously nice sized walk-in wardobe).

The guide price for this property has been set at €695,000 – €735,000 which is incredible value for all the property has to offer. There is very little on the market that compares to this outstanding fully detached home. Viewings have already started and we expect many more before auction day. If you are looking for that ideal family home, with no expenses spared, ready to move into and in a nice villa area with no overlooking apartments around, I suggest you make that call to take a look before its too late.

DSC_3844 (Small) DSC_3830 (Small) DSC_3803_pe (Small) DSC_3815 (Small)

For more info, photos & Google Map location click here