Sell your property to the highest bidder

Added value - another service in selling property - is what Pierre Faure, managing director of Malta Property Auctioneers, wants to bring to the local real estate market. "We offer a very clean, simply and transparent way of selling property, providing another option for those either needing to dispose of property or wishing to release the value of an asset," he told The Sunday Times last week.

Auctions, of course, are nothing new, locally, yet for the first time ever people investing in property will be able to gather at a location and bid for a number of properties - both residential and commercial - that can be maintained for investment, development, or even renovation/refurbishment.

The first auction is scheduled to be held on March 31. In the run-up to that date, Mr Faure said he will be putting together a portfolio of properties that will go under the hammer. Each property has to be inspected, all the necessary notarial searches have to be conducted and the details related to each property compiled.

"There are several benefits in holding an auction for both the vendors and purchasers," Mr Faure said. "Those who, for whatever reason - separation, joint inheritance, court order or requisition - want to sell a property will be ensured full exposure and the potential to create a certain excitement and interest caused by the auction environment.

"I have seen a situation where a piece of land was auctioned at over 25 per cent more than its market value because the two bidders owned a property adjoining that land.

"Those seeking to buy will have the peace of mind and facility to conclude a deal and own the property within 30 days. What we are offering our potential purchasers are added value property that, with the right renovation and attention, will enable them to make a reasonable profit."

Going into the mechanics of how properties could be put up for auction with Malta Property Auctioneers, Mr Faure said that he and a team of six members of his staff would first inspect the property for which a guide price would be agreed with the vendor/s. "The guide price would be what I, in my experience, believe a property is worth," he said.

"The actual sale price, of course, could be higher or lower, depending on the interest from bidders and demand for the property at the time of sale. I will also reach an agreement with the vendor on the reserve price - the minimum price the vendor will accept to sell the property.

"This is highly personal, confidential information. It is released to me only and cannot be disclosed to third parties."

Each property that is to be put up for auction is to be advertised extensively by Malta Property Auctioneers both on a dedicated Website, www.maltapropertyauctioneers.com, and in the local newspapers and other media. "I guarantee at least weekly exposure for properties accepted for auction for two months right up to the day of the auction."

Mr Faure has over 25 years' experience in real estate and currently is also managing director of Pierre Faure Real Estate Ltd at the Westin Dragonara Resort, St Julian's. He spent 10 years selling property in Toronto, Canada, receiving several awards for outstanding sales and dedication to the business.

In 1986 he successfully completed a course to become a member of The Toronto Real Estate Board, which included a Property Evaluation Course, and he returned to Malta in 1991.

On the day of the auction, prospective bidders have to register with Malta Property Auctioneers and bring along a bankers' draft that will enable them to pay 10 per cent of the lower suggested guide price.

Once the auction is complete, if the bankers' draft is less that 10 per cent of the actual purchase price, a cheque has to be made for the difference.

There is also an administration fee of Lm250, while the commission on the property sale is 3.5 per cent. The preliminary agreement is signed right after the auction, with the final contract concluded within a maximum of 30 days.

"I am confident that Malta Property Auctioneers is offering a different option to our clientele to sell their property faster and more efficiently," Mr Faure said. "I can think of several situations where auctioning would be the best way to have a property sold."