Buying and selling immovable property by auction has many benefits for both buyers and sellers. Many are comfortable buying and selling property through auctions, but a few questions remain.

The past couple of years have seen unparalleled growth in the auction industry, especially in Europe. Locally, Malta Property Auctioneers (MPA) are setting standards as the only specialised property auctioneers in Malta. Sellers and buyers alike are embracing the auction process and have indicated that they are comfortable with the finality and transparency the auction brings.

Auctions are just another way to sell assets and MPA, as a local player, is doing a lot to educate the public about auctions and their benefits. This will help buyers and sellers to remain comfortable about this innovative process of trading property.

It is certainly not the case that only vendors who are facing financial difficulty list their property on auction. All our properties on auction are extremely well priced because vendors want to sell quickly, without the hassle of a long delayed sale.

They realise that what we are offering is a well-organised marketing campaign, and if we believe the property is good value and has potential, we will invest our time and money to make sure that the property is sold quickly and efficiently.

More and more private sellers are approaching MPA to sell their property as they realise the benefits of selling through auction. Incoming queries have increased by 300 per cent and attendances have quadrupled.

Buyers have the opportunity to view the property before the auction and will have enough time to do their necessary homework. A property catalogue containing relevant information on the property is produced and made available to interested buyers a month before the auction.

The conditions of sale documents are usually included in the catalogue, which explains the auction process, and is there to protect the interests of the seller and buyer.

The seller of the property and the auctioneer will agree on an expected price, referred to as the reserved price.

There is no risk attached to a sale through public auction, since the seller dictates his expectations to the auctioneer before the auction. The perception that you as a seller have to accept any price fetched at auction is totally wrong.

Selling through an auction is a completely transparent process. The public can scrutinise the process and it is the most accurate indicator of property values at any given time.

In the traditional way of buying property, one has to appreciate that such buyers face an unfair price game when it comes to buying property. As soon as it becomes evident that the buyer is financially wealthy, most sellers demand an unfairly higher price than previously quoted, and continue changing their goalposts till the very end, making it very frustrating for serious buyers. In this case, the auction option as a means of buying property is definitely worth considering.

The stiff competition in the property market to obtain a mandate can often lead to overvaluation and unrealistic inflated expectations on the part of the seller. The auction price of a property is determined by the basic economic principles of supply and demand.

It would be worth attending an auction to realise that the process is extremely simple and interesting. It is advisable to subscribe to the auction catalogue mailing list and, once you receive the catalogue, go through it carefully and pick out properties that look interesting.

At this stage one would need to call the auctioneer to schedule pre-auction viewings and find out more about the property, auction venue and regulations.

Once the property has been viewed, finances should be put in order (by checking with the bank), go through notarial searches (available at the auction house notary) and get an architect to assess the property structurally.

On being satisfied that there are no problems, there are two options: give an outright offer to buy the property before the auction (it is advisable that such an offer is around the highest guide price to have a higher chance to secure sale) or wait for the auction day and register for the bidding.

On the day, always remember to take an ID card and a bank draft. Arrive early, register for a bidding number and check for any changes to the published catalogue or last-minute updates. Find a seat where the auctioneer can clearly see you and get ready: the fun's about to start!

When the lot you intend to bid for comes round, make your bids clear to the auctioneer. Raise your hand and clearly show the bidding number assigned on registration. If you do win the property, you will be immediately led by an auction hostess to the notary's desk to sign the preliminary agreement.

The highest bidder is expected to pay a 10 per cent deposit on the day and the remaining 90 per cent within the agreed timeframe.

In the upcoming auction to be held on Saturday at the Pavilion, Westin Dragonara Resort, there are 25 lots, varying from detached villas, houses of character, terraced houses and luxury seafront apartments to some interesting commercial opportunities.

For more information visit www.maltapropertyauctioneers.com, or call 9945 1255/2138 8402.