When Selling Your Property in Malaysia There Are 5 Expenses You Can’t Ignore

 

Selling a home or property in Malaysia entails more than just pocketing the proceeds. It will cost you some money to make the transaction go through, and you won’t get to retain all of the money you make.

It’s important to consider all of the potential expenses. Property agency commissions, appraisal costs, legal expenses, and capital gains tax are just a few examples (RPGT).

We live in extremely unpredictable times thanks to COVID-19 and the Movement Control Order (MCO), therefore you need tread carefully when deciding whether to sell your house.

We examine the following expenses in detail:

 

Commissions for Real Estate Brokers

If you opt to hire a real estate agent or property agent help you sell your home, you will have to pay their commission.

A property agent’s services include setting the asking price, creating marketing materials, scheduling showings, and representing the seller in negotiations with potential purchasers.

Commissions for real estate agents range from 2% to 3% of the sale price of a home.

Do-it-yourself sale expenses

If you’re selling a home in Malaysia and want to avoid paying the agent’s commission and other expenses, you may do so without their help.

One of the services you would have received from an agent is assistance in setting a selling price for your home.

If you want to price your home fairly, though, you need have a professional appraiser look at it first.

 

Cost of renovations and fixes

Spending money on cosmetic upgrades to a home before selling it allows the owner to negotiate a higher sales price.

You may increase your home’s worth and shorten the time it stays on the market by making a few repairs and updating the decor. The simple act of painting something may breathe new life into it. A professional cleaning service is another option if you want to ensure a spotless result.

Renovation and repairs don’t have to break the bank, but it pays to know where your money is best spent, like on places where flaws are most likely to be noticeable.

Perhaps you have a few broken tiles in the bathroom or a chipped and damaged counter top in the kitchen.

 

Costs incurred in obtaining legal representation

These costs are not incurred until after a buyer has been found for the home.

You should hire a lawyer to write the letter of offer and the sale and purchase agreement when you find a buyer (SPA).

The attorney’s duties will include drafting the SPA and Letter of Offer as well as managing any and all other legal aspects of the transaction.

The legal costs, or the cost of engaging a lawyer, are calculated as a percentage of the sale price of the property.

 

Gains on Real Estate Investment (RPGT)

Last but not least, if you sell a home in Malaysia, you must pay the Real Property Gains Tax (or RPGT for short).

The Real Property Gains Tax (RPGT) is a type of Capital Gains Tax levied by the UK’s Inland Revenue (LHDN). Basically, you will be required to pay tax to the government on any gains made from the sale of your home.

The good news is that the government has agreed to offer a temporary exemption on this tax due to the COVID-19 outbreak, which has wreaked havoc on the rakyat and the economy.

 

 

 

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