Planning to purchase a new property or plan to move?
The first big investment a person can make in their life is buying their own house, then the second is selling it. The objective of having own property is to have or acquire the benefits of capital appreciation on a property. Selling a house will affect you in many years of your existence, this is a very important decision to make It is best to be knowledgeable on how to sell a property properly.
You have to make sure that the property that you plan to move or purchase has a recycling centre nearby. Learn to save the Earth! Practice reuse and recycle, as a Malaysian, that is the least you can do. The few properties that are near a recycling centre are the G Residen, Seni Mont Kiara and Pantai HillPark.
You could watch this video to see what happens to recycled waste afterwards:
Considering the huge amount of paper works required and the intimidating trips on government that you must conquer. However, you just must learn and familiarize your self with the steps and procedures with the legal and personal documents that you must need to prepare to acquire the benefits on investing in real estate.
1. Clear your emotional attachment
For some, this is the very hard part of selling their own property. Getting rid of the attached emotion to the property they are selling. This can be a problem on pricing the property sometimes they end up setting the price higher than the usual having a result of not having a buyer. You need to be a strong and open-minded person for you to deal with the emotions to let go of the property you are selling. After dealing with your emotions this is the only time you can decide with the price based on true data of your property.
2. Settle your selling price
To find out how much is the real worth of your property, you must seek the help of the professional. You need to have a guide for a real estate agent. They are the one who works to have you know the real cost of your property, they can provide you with the accurate proof of your property’s worth and the price you should set based on the legal, personal and market data and all the other factors.
3. Find a real estate broker
You can make all the difference in the world if you find the right agent/broker. Selling your property is a big decision to make and a serious matter and brokers, agents are trained to know all the process in selling or acquiring a property, it includes searching a buyer, advertising the property and negotiating skills. Also, they are the one who checks the property to provide an assessment of its current market value. Voluminous factors are needing to take into considerations in determining the worth of the property.
4. Get a Legal Advice
In selling a property there is a legal process that you must follow through, such as transferring ownership. It is best to have it prepared beforehand. You must find the right lawyer to help and guide you from the beginning. This will help you avoid problems such as delays and will help you to get all the documents you will need to ready when the time comes you need it.
5. Advertise your property
Through advertising, you can let people know about your property in the sale. You can hire a professional photographer to help stage your property an have the best photos to attract your audience/prospective buyers. You can then use social media on posing your on-sale property or on any site that will help you find a buyer. You also can ask for help with your family and friends in cascading the word or your agents and brokers in helping you with the advertisement, they are trained to do so. Word of mouth is the most powerful tool for this.
6. Property Viewing
A major turn off to a buyer if the property is not appealing inside and out or and unclean. Get your property ready for viewings; clear all the unnecessary things, have it renovated if needed or fix all the broken materials to make it look new as possible. Try now to make a long way better later.
After clearing and tidying up your property and have it ready for viewing, then it is the time you schedule for the prospective buyers viewing of the property, you must make your property ready and presentable to add value on it. Let your prospective buyer explore the property with your agents in case they have a question, avoid interjecting yourself too much in conversations, it is good to build a rapport to your prospective buyer but if you talk too much they might not want to continue the viewing because they feel uncomfortable. Let your prospective buyer view the property at their own pace. Use your good sense to see the situation and ask the opinion or advice of your agent/broker if needed.
7. Discussion with the buyer
If you find a buyer that shows a genuine interest. Then this is the right time to negotiate the price. Get help from your agent on how to negotiate and handle the situations, they are capable of finding a solution that satisfies both parties involved. If there are situations like Negotiations depend on a number of factors like the asking price, market conditions and urgency of sale your agents can really help you with this matter. It is not advisable on taking too long with the negotiations, it is a waste of time and you don’t want to waste time with one buyer if you have many potential buyers in line.
8. Letter of intent or offer to buy
Once you finally both agreed with the decision on the price it’s time to sign a letter of Offer. You need again the help of your agent because they are the one who ask the buyer to sign the Letter of Offer to Purchase or an agreement to purchase with a partial payment of between 2-5% of the offered sum when they agreed and create the offer letter and normally they keep the deposit in their buyers account as stakeholders from the date the offer is made until the execution of the S&P agreement (sales and purchasing).
Information in a Letter of offer:
- Name of Vendor
- Name of Buyer
- Address of the property
- Property price
- Partial payment or the deposit
- Fittings included in the sale or any items included
- Date before which the sale and purchase agreement must be signed
9. SPA (Sales and Purchasing Agreement)
The Sales and Purchasing Agreement (PSA) is a written contract that indicates the terms and conditions of the transaction of property. Sometimes, parties have occurred a situation that can lead to terminations of contracts prior to the completion of the deal but it must state in the letter.
After signing of a letter of offer they will signify the acceptance of the terms given by the buyer. You bound to promise not to offer the property to another buyer if the buyer does not breach the rules and conditions written in the letter. You need to give the information to your lawyer or you must seek help t with your agent to communicate the details to your lawyer to begin the legal preparation for the sale.
They will give the balance of the first 10% of the price if the buyer executes the sales and purchasing agreement. in 14 days, you need to have the document be stamped after signing to protect the document from fraud. The standard sales and purchasing agreement process state that the 90% remaining will be payable to you within three months from the sales and purchasing agreement is signed and stamped. However, it may change depending on the agreement, the type of property, buyers, and mode through which you get the property.
10. The Final Process
Once the documents are done and the payments are made we are down to the final process. The ownership is transpired to the buyer and the property is successfully sold but note that you might have to pay the RPGT (Real Property Gains Tax).
The RPGT is a ‘capital gains’ tax that the Malaysian government imposes when a property is sold off. It is a tax that is charged based on the capital gain a seller has made when the property is sold. This is jotted down in S.3 of the Real Property Gains Tax Act 1976.
The RPGT can be paid by the seller of the property and it is payable to the Inland Revenue Board (IRB) of Malaysia. If a property is sold in Malaysia and it earns a profit, the RPGT will apply, regardless of whether you are a Malaysian citizen or a foreign resident. The RPGT rate, however, may differ depending on whether you are a Malaysian citizen or a non-Malaysian citizen or a company.
Real Property Gains Tax Rate:
|Date of Disposal||Companies||Individual (Citizen &|
|Within 3 years from the date of acquisition||30%||30%||30%|
|In the 4th year||20%||20%||30%|
|In the 5th year||15%||15%||30%|
|In the 6th year and subsequent year||5%||0%||5%|
All stated above is just a basic guide on how to sell your property in Malaysia. If you have or want to sell a property, make sure to do your research. Most importantly is to find a good and trusted real state agent/broker to help you through the process.