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THE ULTIMATE HOME SELLER’S GUIDE IN MALAYSIA FOR YEAR 2022
Introduction to Ultimate Home Seller’s Guide
The ultimate home seller’s guide will explain the process of property selling in Malaysia. The process of selling a house is not an easy and short process. It is a winding process, time consuming, potentially problematic if not properly supervised and at risk of having legal implications if there are related parties who are dissatisfied with the parties involved.
As the ultimate home seller’s guide in Malaysia, this guide is a complete guide that can help property owners to ensure their home sales process runs smoothly.
Important Points To Consider
- Motivation of Home Sellers
- Market Value vs. Sales Price
- Condition of the House
- Cost of selling a house
- Home Sales Process
Motivation of Home Sellers
Motivation factor is one of the important pushing factors in determining the success of the sale of a property. There are property owners who sell their property for the following reasons:
- Require additional capital for other business expansions and real estate sales money can be used as additional capital.
- Health factors where real estate sales money can be used to finance treatment cost.
- Educational factors where sales money can be used to finance the cost of children’s education.
- Inheritance distribution factor.
- As self and family financing as a result of being fired.
- Other reasons.
Property owners who are unable to set property sales motivation are constantly changing their minds. This greatly disrupts the sales process. For example, there are cases where the buyer makes a purchase price offer after being interested in a property and suddenly the property owners change their minds not to sell their property. A month later, the owners changed their minds to resell their property.
Unfortunately, the buyer who have made the previous offer have already bought another home unit. The effect of this attitude is that we lose the opportunity to sell at a better price because the next potential buyer will probably make a much lower price offer. As the saying goes, a bird in hand is worth two in the bush.
Market Value vs. Sales Price
The market value and selling price of property are two very different things. This ultimate home seller’s guide in Malaysia will provide the best understanding of these differences.
The market value of a property can only be set by a valuer or appraiser registered with The Board of Valuers, Appraisers, Estate Agents and Property Managers of Malaysia. This evaluation process has several techniques including comparison, investment, cost and account methods. Property owners can appoint their own appraisers at a certain cost if they are interested in finding out about their property’s market value.
What is Bank Value?
Bank value is a verbal assessment (assessment without report) determined by the valuer panel that has been appointed by the bank. The bank value is the property value that is set to determine the maximum value of the loan that the bank can give to their borrowers.
What is Sellable Value?
Sellable price is an indicative range of property prices that can be sold based on the latest and recent sales transactions in the area. Experienced real estate consultants can assist homeowners in determining the marketable prices for their properties.
How to Determine Sales Value of Property?
There are several factors in determining the sales value of a property. Among them are the demand and supply factors in a certain area. High supply compared to demand will cause the selling price to be very low when compared to the current market price. However, most properties sold are usually below current market prices.
Condition of the House
The condition of the house is the most important factor in ensuring that the house can be sold sooner or slowly or get a better price or vice versa.
An empty and unoccupied house is easier to sell compared to an occupied house. This is due to the fact that unoccupied houses look spacious. Homeowners can repair any minor damages and paint the walls that look dull to white.
The advantage of a house that is empty without furniture and has been painted can make it easier for prospective buyers to visualize the position of the furniture or even the renovation that will be done. This process can make the sales process much easier.
However, occupied houses can still be sold provided that during the photography, videography and visiting sessions by potential customers, the house is in a neat and orderly condition. There are no hanging clothes, a neat dining table, trimmed grass and many other things that can improve the condition of the house.
During a visit session by a prospective buyer to the home, the owner should ensure that lights, fans and air conditioning are installed. This is to create a home feeling to prospective buyers who are visiting.
Cost of selling a house
There are some costs that homeowners have to bear if they succeed in selling their home. Among those costs are:
- Lawyer costs. The cost of a lawyer is not the cost shared between the buyer and the seller. In simpler language, buyers will pay their own costs while the homeowners also pay the costs of their lawyers.
- Real Property Gain Tax (RPGT) costs. This tax is calculated based on the amount of profit earned when selling a property. The percentage value (%) charged depends on the holding period and it starts from 30%, 20%, 10% and 5%.
- Real Estate Agency costs. The cost is 3% of the selling price of the property. An additional 6% of the total agency fee is for Sales & Service Tax (SST) making the total cost is 3.18%. The 3% cost has been gazetted in the Parliament of Malaysia and provided in act 242, the Valuers, Assessors and Real Estate Agents Act 1981 in the schedule of the 7 acts.
Home Sales Process
- Appointment Process of Registered Real Estate Consultant
- Real Estate Inspection Process and Photography Sessions
- Sales Pricing Process
- Real Estate Marketing Process
- Property Visit Process with Prospective Buyers
- Property Purchase Process
- Housing Financing Application Process
- Real Estate Lawyer Appointment Process
- The Process of Signing the Sale and Purchase Agreement
- The Process of Handing Over Vacant Ownership to the Buyer
Appointment Process of Registered Real Estate Consultant
The selection of top property agent in kuala lumpur, Malaysia is the most important factor. It is like choosing your own employees. Some real estate consultants who are highly skilled in technical knowledge, highly disciplined, diligent and most importantly can produce sales results as expected. Not all real estate consultants have the skills mentioned above. In such situation, this ultimate home seller’s guide in Malaysia will come in handy.
To ensure that the selected real estate consultants are registered, you can check the registration of real estate consultants on the website of the Board of Valuers, Appraiser, Estate Agents and Property Managers Malaysia. Use the search function “search for member” and enter the REN number of the real estate consultant. For example, enter REN number 26075 for Mohd Shah Bin Dolah.
Real Estate Inspection Process and Photography Sessions
The appointed real estate agent in kuala lumpur, Malaysia will conduct a physical inspection of the property and provide feedback related to the property to be sold. Among the feedback given are the damage that needs to be repaired or the paint work that needs to be done to ensure that the property is in good condition and ready for sale. The real estate consultant will then do a property photography session. The right photography angle will produce a beautiful picture and give a broad perspective to prospective prospects.
Sales Pricing Process
The real estate consultant will provide a final transaction report and obtain a verbal bank valuation from the bank panel. Once the sale price is identified, both parties, the seller and the real estate consultant will sign the sales appointment form where the sales price that has been set will be recorded in the appointment form.
For homeowners living far from the property units to be sold, you are encouraged to submit a set of duplicate keys to be held by a real estate consultant. This is because often prospective buyers want to see the property in a short notice. With this, you can save a lot of time because you do not have to attend to open the door every time a visit is done by prospective buyers to your property premises.
Real Estate Marketing Process
There are several real estate marketing mediums that consist of online marketing medium as well as offline. However, there is also an offline marketing medium that is not accessible to homeowners, namely networking and databases between real estate consultants. This highly intensive network can ensure that your property can be sold within a short period of time.
Thus, choose a real estate consultant who has an extensive property network as it can help speed up your property sales process.
Property Visit Process with Prospective Buyers
To ensure that the property sales process can be done quickly and achieve a high conversion rate, the real estate consultant will conduct a background check on the buyer every time before the visit process. This is to ensure that only qualified and quality buyers will be brought to see the property.
This background check is also important to ensure the safety of the homeowners, especially during the visit session. There are cases where there are criminals disguise themselves as buyers when they see the house advertised on the online platform has a lot of valuables. During the visit session, they committed criminal activities such as snatching and robbing. To prevent such a situation from occurring, a background check must be performed. The real estate consultant will ask many questions to ensure that the prospect is a genuine buyer.
Property Purchase Process
When the buyer is interested in continuing to purchase a property, the buyer should provide a house deposit of 3.18% which will be paid to the real estate agency. The real estate agency will act as the trustee holding the deposit.
Next, the loan application process will be done. If the housing loan is not approved by the bank, then the 3.18% deposit will be fully returned to the home buyer.
If the loan is approved, the buyer will then appoint a lawyer who will manage the purchase process of the property.
Housing Financing Application Process
The real estate consultant will help to manage (if there is a demand) property financing application for the property buyer. The choice of bank is determined by the financial profile of the buyer and also the characteristics of a property. For example, if the house to be purchased is still in the master title and has not yet completed the perfection title of the property after more than 10 years of completion, there are only a few banks that can provide financing to the buyer. A skilled real estate consultant is able to make a financial assessment of the buyer and send it to the appropriate bank. This is important as it can avoid wasted time by sending financing to banks that do not fit the buyer’s profile as well as the house.
Housing Financing Application Process
The real estate consultant will help to manage (if there is a demand) property financing application for the property buyer. The choice of bank is determined by the financial profile of the buyer and also the characteristics of a property. For example, if the house to be purchased is still in the master title and has not yet completed the perfection title of the property after more than 10 years of completion, there are only a few banks that can provide financing to the buyer. A skilled real estate consultant is able to make a financial assessment of the buyer and send it to the appropriate bank. This is important as it can avoid wasted time by sending financing to banks that do not fit the buyer’s profile as well as the house.
Real Estate Lawyer Appointment Process
Once the financing application is approved by the finance, the next step is to appoint a real estate lawyer to manage the process of selling and buying this property. It is important to ensure that the appointed lawyer is a lawyer registered with the Malaysian Bar Council. This is to ensure that these transaction procedures can be done professionally and in accordance with the provisions of existing laws.
The Process of Signing the Sale and Purchase Agreement
Once all the terms and conditions of the agreement are agreed by both the seller and the buyer, they will then sign a sale and purchase agreement. At this point, the buyer will make an advance payment of 6.82%. After this process, there will be another process that will be managed by the lawyer.
Among other processes are the registration of form 14A of the National Land Code, determination of stamp duty and payment, charge and discharge process of property from the mortgagee, application for permission from the authorities, developers and banks, determination of debt balance and payment of home sales balance.
The time period for homeowners to get the remaining 90% of home sales revenue is in the range of 90 to 180 days from the date of signing the sale and purchase agreement and depends on the type of real estate transaction.
The Process of Handing Over Vacant Ownership to the Buyer
When the bank has made full payment to the buyer’s lawyer, at this point there is a process of vacant possession submission to the buyer. The original homeowner must hand over the house keys to the new owner within the stipulated period.
Conclusion
This ultimate home seller’s guide in Malaysia offers the best guidance in property’s sales and purchase. As I mentioned earlier, the property buying and selling process is a very long process, technical in nature, risky to face legal action in the event of a dispute between stakeholders and this requires a professional property consultant, highly skilled and extensive experience. I am ready to help you realize your property sales process. Please click Appoint Me button below now!