What is an estate agent?
The term is used to refer to somebody appointed to sell, rent or manage a property. After being approached by the owner of a property who wishes to sell or let, estate agents do the marketing of the property and negotiate with prospective buyers or tenants.
Do they charge for their services? How do they make money? Residential sales estate agents make their money by charging the seller of a property a percentage of the selling price as their fee.
The buyer of a property does not have to pay the estate agent. In Malta the percentage is five per cent of the value, plus VAT. As they claim their fee from a completed transaction, it is in an agent’s own best interests to sell a property and to sell it at the highest possible price.
It is possible to sell a house without using an agent. However, if you cut the middleman, you should proceed with caution
This is also a reason to be suspicious of an agency which quotes you an exceptionally low commission rate – with less financial incentive to sell your house, they might not do such a good job.
So what does an estate agent actually do all day? A wide range of duties.
Residential estate agencies usually handle either sales or lettings, although some do deal with both. An agent who works on sales will meet people who wish to sell a property and work with them to agree on a timescale and asking price. They handle marketing for the property, which involves things like choosing where it should be advertised to target the most desirable potential buyers, according to the type of property, price and area.
They meet potential buyers, discuss what they’re looking for and take them to view houses they think are suitable. When they succeed in finding a buyer for one of their properties, then the buyer will generally appoint a Notary Public who will handle the legal side of things.
Do I have to use an estate agent?
No. It is possible to sell (or buy) a house without using an agent. However, if you decide to cut out the middleman, you should proceed with caution: buying a property is a big commitment, and with such large sums of money involved it is important that the transaction is carried out correctly.
Estate agents are able to give educated estimates regarding the valuation of a property for sale. They also know what an acceptable asking price would be, which non-professionals may not be able to do.
How can I choose an estate agent?
Choosing the right estate agent as your advisor is an important task and should be taken seriously. Meet two or three and check their experience, knowledge and education in the real estate market. This is more important if you are looking for the right property at the right price.
giovanni@remaxcentralmalta.com