In order to make the process of selling your home in Malaysia seem less daunting, we have broken it down into a number of simple stages.
You may count on us for help with anything from finding an agent to completing the Letter of Offer. If you find yourself confused, relax and read on.
Do Some Market Research And Determine A Price
First, you’ll need to determine how much your property is worth. You can hire a real estate agent or a professional valuer to help you determine the fair market value of your home.
You may improve your home’s marketability and sales prospects by having an expert appraise your property.
Keep in mind that most house loans from banks would only go up to 90% of the sum based on the appraisal, not the agreed upon price between the seller and buyer.
That means the buyer will have to shell out more of their own money if you decide to ask more than the going rate for your home.
Here’s an illustration of this in action: If the value of your home is RM100,000, the maximum loan you might get is RM90,000.
Thus, the buyer would have to come up with the RM10,000 difference out of pocket.
Despite your best efforts, the bank would only lend you up to RM90,000 even if you set a price of RM160,000 without first having it appraised.
Your buyer would need to come up with an extra RM70,000 in actual cash to close the deal. A customer who has that kind of disposable income could still hunt around for better offers.
It is possible to do further research after an appraisal has been completed and include the results into the asking price.
Investigate the market worth of similar homes in the area. And how much they sold for if any have sold recently.
Keep track of how many properties were sold and in how much time. This might provide insight into the level of interest in your neighborhood.
Finally, while establishing a price, it’s important to keep in mind that any potential buyer will likely try to lowball you.
Find a reliable real estate agent
If you want to sell your home fast and for a high price, hiring a competent real estate agent is a wise investment.
They are well-versed in all aspects of the real estate transaction and can assist you in locating qualified buyers and striking a favorable price.
To begin, the Board of Valuers, Appraisers, and Estate Agents require registration from anybody claiming to be an agent in the fields of estates, homes, land, or property consultancy (BOVAEA).
Second, you may be wondering if there is a distinction between a real estate agent (REA) and a real estate negotiator (REN).
RENs are required to be licensed by the BOVAEA, work full-time for a licensed real estate company, and cannot work for themselves or more than one company at a time.
With their BOVAEA registration and certification in hand, REAs are legally allowed to launch their own real estate firms and employ up to thirty RENs.
For an REA to earn full certification, they must complete an additional process and have worked as an intern for at least two years under the supervision of another REA.
To begin your search for an agent, it is helpful to ask for referrals from someone you trust. This is a great and straightforward approach to learning what others think about a specific agent.
Feel free to grill the agent on previous sales of comparable homes and the availability of references during your initial meeting.
What about trying to sell your home without the help of a real estate agent? Without an agent’s assistance, selling a property might be a lot of work, but it’s certainly doable (the owner).
Sam Leng, a REN with Kith & Kin Realty, says that if a seller does it alone, they’ll have to put up signs and advertise the home themselves. All of this may be prevented by working with an agent.
As the owner, it is your responsibility to have your agent negotiate contracts and resolve problems on your behalf. Online, you may often find owner and tenant problems that a professional property agent might simply resolve. In other words, real estate brokers provide their services as a kind of problem solver.
When a home’s owner or seller needs help finding a tenant or finding a buyer, we’re here to help. We discuss how to advertise the property, evaluate its current state, screen potential renters to make sure they have legitimate references, etc., as Sam put it.
Consult a Lawyer
There are formalities associated with the transfer of ownership that must be completed in the legal system before a property may be sold.
An attorney should be sought out early on because of the need of having expert assistance in writing the required legal paperwork.
Having a lawyer on hand is reassuring in case a situation arises that requires the use of legal terminology or prompt legal guidance.
Remember to budget for legal bills as well; the Solicitors’ Remuneration Order sets a minimum rate for their services.
Get the Place Looking Nice
If you’ve decided to sell your home, now is the time to get it ready to be shown by potential buyers.
Buyers that come to your area for viewings will only have a short amount of time to look at your home, so it’s crucial that you make a strong impression in that time.
Talk to your real estate agent and have them check out your house for you. You may learn a lot about the property’s shortcomings from a third party’s objective perspective, and real estate agents have the knowledge to know what to look for.
The lack of cleanliness and orderliness in your home may turn off many potential purchasers. They will evaluate your home as it currently stands, rather than how it will look once they have finished making improvements to it.
Get rid of the clutter and spruce up your home with some new paint. You should clean up any trash and mow the lawn if you have one. Fix all the broken things including leaky faucets, squeaky doors, and cracked tiles.
Publicize and exhibit your home
Put up signs and let people know that your home is on the market. If you’re going to put your home up for sale online, it’s important to take some great pictures of it.
Allow plenty of natural light in by opening the windows and using a high-quality camera. A third option is to employ a professional photographer to do the job.
After taking some stunning pictures of the property, your agent may begin marketing it through conventional and online means. Market overseas as many overseas investors are now b buying 2nd and 3rd-holiday homes in Malaysia and using them as Airbnb rentals.
You may also utilize your personal social media accounts to get the word out. Your own network of friends and relatives may be an excellent resource as well.
Get Ready For the Showings
Customers who are really considering purchasing your home will want to schedule a personal visit.
Make sure everything is in order and that there is enough of natural light and airflow by opening the windows before the viewing. Keep in mind that initial impressions are crucial.
Allow the prospective buyer to look around at their own pace and avoid hovering too closely throughout the showing.
While increasing your chances of making a sale by establishing trust with a prospective customer is always a good idea, you should avoid coming across as excessively aggressive.
Conversational Bargaining With The Purchaser
Well done on finding a serious buyer interested in purchasing your home. It’s time for you and the seller to haggle over the price.
Many variables influence the outcome of negotiations, including the asking price, the state of the market, and the timeframe in which you need to close the deal.
Always leave room for compromise. Setting the price at RM630,000 instead of RM600,000 might help you sell your home faster.
If you want to make the most of these discussions, consulting with your agent is essential. As an added bonus, he or she can help you and the buyer come to terms.
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The Job Offer Letter
A Letter of Offer should be signed by both you and the buyer once a price has been agreed upon.
At the time the offer letter is written, the real estate agent will ask the buyer to provide an earnest money deposit. The standard rate for this deposit is 2-3% of the total amount being offered.
Here’s everything you need to know about writing an offer letter:
- Names as they appear in their respective legal documents as the buyer and seller
- The property’s official street address
- The agreed-upon price
- The amount of the Deposit
- All included fixtures and furniture
- The cut-off time for signing the SPA
A Purchase and Sale Agreement
Once an offer is accepted, your attorney can start making the necessary legal steps to close the deal.
The buyer will pay the initial 10% of the purchase price upon execution of the Sale and Purchase Agreement (SPA) (the down payment).
You’ll get certain papers that need to be stamped when they arrive at your doorstep. You have 14 days from the date of the Letter of Offer’s signature to comply.
The remaining 90% will be paid to you within three months of the day the SPA was signed and stamped, as is customary in such agreements.
However, this time frame might change depending on the specifics of your agreement, the nature of the property, and the people with whom you interacted.
The Closing of the Deal!
Ownership of the property will be transferred to the buyer once all payments and paperwork have been paid and received.
In Malaysia, selling a home may be summarised in only 10 easy stages, as you’ve just seen.
You should sell your property in Malaysia without making these common blunders now that you know what it takes.