Service Commission rates
Typically Open Agency marketing rates charged by the largest agencies in Malta and Gozo are 5% plus VAT, and typical Sole Agency rates are usually 3-3.5% plus VAT.
For private/individual residences/immovable property we charge significantly lower rates than the larger Malta agencies for Open Agency marketing of your property. We charge the same lower fee for Sole Agency terms. But do see our alternative approach to Sole Agency further on.
For larger Developer projects we charge the standard Malta Open Agency rate.
In all cases we do not charge any fees if a preliminary contract has not been signed, or where a final contract does not proceed due to specific conditions in the contract not being met.
In Malta Property owner/sellers either contract exclusively with ONE agent for a set period of time, or they have an Open agency agreement (most common), meaning the Owner/Seller can contract separately with as many other agents as they wish. There are distinct disadvantages to this mode of working for the Sellers, which also indirectly impacts the Buyers.
Each agency is responsible for producing its own marketing materials, sending in photographers and/or agents to the property to photograph it, writing up descriptions, and preparing and uploading/printing them. For Open agencies this means that the seller has to accommodate many sets of photographers, typically from 3-5 agencies, taking up their precious time and invading their privacy. The results are inherently inconsistent, and different agents may end up displaying differing prices, differing descriptive information, and vary quality or standards of photographic representation of your property.
move2Gozo's Multi-Listing Service
Our alternative progressive approach to Sole Agency marketing. With this exclusive service we turn this traditional Malta marketing approach totally on its head by also offering sellers a multi-listing service, more akin to the USA Realty Agency approach to property marketing.
By contracting exclusively with us, we actually increase your marketing reach, rather than limiting your reach and marketing to just one agent, as the standard Sole Agency system in Malta currently operates.
However the benefits of this service to both you as the seller, and also to the buyer is unique and significant. How does this work? See the next TAB section.
Why are Estate Agency rates in Malta higher than in other countries?
It depends on which country you are referring to. In the UK rates are lower. In the USA and France, for example, the rates are similar and often higher. In some european countries, Agencies charge both the Seller and also the Buyer a commission fee. In Malta it is the seller who contracts with the Agency and pays the resultant commission fees due following a successful completion.
In Malta, anyone (off the street) who introduces a buyer to a seller has a legal right to 1% of the final sale transaction value from each party (the buyer and the seller), i.e. 2%. They do not need to do anything over and above the introduction to the relevant property for this commission entitlement, which can also leave both the seller and the purchaser exposed. These persons are referred to locally as "Sensar's", a role which existed prior ot the advent of estate agencies in Malta. The vast majority (over 99%) in this category do not advertise or carry out any marketing or have other related expenses, as their relationship with clients is either through referral (e.g via friends or neighbours) or coincidental. In the vast majoirty of cases buyers are often unaware of any commission that may be 'legally' due from them when shown properties by a Sensar.
Estate Agents on the other hand spend significant time and effort preparing marketing materials, photography, back-office work and have associated marketing, travel and office expenses on top to cover, leading to them needing to charge higher rates that. Unlike the situation with Sensars, agency rates are only charged to the Sellers on a successful sale. Registered Estate Agencies typically offer a much more detailed and comprehensive service as well as helping with many other aspects of a sale or purchase as well as after-sales services.
With move2Gozo we provide full support and advice to sellers and buyers throughout the entire process (and often beyond) and adhere to high standards and conduct guidelines befitting our professional position and status.