If buying a house is the first big investment a person can make in their life, then selling a house will be the second. The ultimate objective of property investment is to reap the benefits of capital appreciation on a property. Selling a house is a very important decision to make, one that will affect you for very many years. That’s why you need to know how to sell your house properly, so that you can enjoy the rewards you deserve. In this article, we will walk you through how to sell your property.
1. Set your selling price
The first thing you need to do is to set your selling price. To help you find out how much your property may be worth you can either get it appraised by a valuer or a trusted real estate agent. They will provide you with an accurate indication of your property’s worth and the price you should set based on market data, the property type and the price of similar properties in the surrounding area, among other factors.
2. Find the Right Agent
Finding the right agent to help you can make all the difference in the world. Selling property is a serious business and real estate agents have made it their profession to do so. Which means, they have been trained to be familiar with all the steps needed to sell property, including finding the right buyers and negotiation skills. When looking for an agent, do proper research online and get referrals from friends and family. Later you can try interviewing the agent and asses their abilities for yourself.
3. Get legal advice
When you sell a house there will be certain legal procedures you will need to go through, especially when it comes to transferring ownership. It is best to be prepared beforehand, therefore, appoint a lawyer from the beginning. This will help you avoid delays and give you time to get all the documents you will need ready when the time comes to transfer ownership.
The best way to let people know you have a property for sale is through advertising. Hire a professional photographer to help stage your home and get the best listing photos to attract prospective buyers. You can then register your home on a listing site and even put it up on social media. You can also ask your friends and family to help you spread the word. Word of mouth is a powerful medium. You can also ask for advertising advice from your agent; they have been trained for this and can tell you about effective, state-of-the-art methods for advertising.
5. Get your home ready
A major deterrent to buyers is an unclean home or one that does not look appealing, inside and out. Get your home ready for viewings; clean up any dirt and excess clutter, arrange your furniture to make the place look more welcoming, fix any broken items, and if need be, repaint your home so that it looks as good as new. A little effort now will go a long way later.
6. Showcase the place
Once you have finished tidying up your house and have it ready for viewing, then it is time to bring in the prospective buyers. Let the clients explore the house freely with your agent. Let the client feel comfortable and view the property at their own pace. Avoid interjecting yourself too much in conversations. While it’s good to build a relationship with a client, if you talk too much you might make them feel uncomfortable and they might not want to continue the viewing. Use your own good sense to assess the situation and if needed, ask your agent for advice.
7. Negotiate with the buyer
You’ve found a prospective buyer who is showing genuine interest. Now is the time to negotiate the price. This is where your agent will really help you out. Negotiations depend on a number of factors like the asking price, market conditions and urgency of sale. Get advice from your agent on how to handle the situation, they will help find a solution that satisfies all parties involved. Don’t take too long with negotiations though, you don’t want to waste time with one buyer while you may have another potential buyer in line.
8. Letter of Offer
Once you reached a decision on the price, it’s time to sign a Letter of Offer, also known as a ‘Letter of Offer to Purchase’ or an ‘Agreement To Purchase’. An estate agent will normally ask a buyer to pay an earnest deposit of between 2-3% of the offered sum when they create the letter and they normally keep the earnest deposit in their client’s account as stakeholders from the date the offer is made until the execution of the Sales & Purchase Agreement.
A letter of offer usually contains the following information:
- The legal names of the vendor (seller) and buyer
- The legal address of the property
- The price that has been agreed upon
- The deposit amount
- Any items such as fittings included in the sale
- The date before which the sale and purchase agreement must be signed
9. Sales and Purchase Agreement
After you’ve accepted an offer, either you or your agent need to give your lawyer the information they need to begin legal preparations for the sale. When the buyer implements the SPA they will pay the balance of the first 10% of the purchase price. The documents will be sent to you for implementation and will then be stamped. All this must be done within 14 days (2 weeks) of the signing of the “Letter of Offer”.
Standard SPA terms state that the remaining 90% will be payable to you within three months from when the SPA is signed and stamped. However, the time- period may vary depending upon the agreement, the property type, who you deal with and the mode through which you acquire the property.
10. The final Step, Sale
Down to the final stretch, once all the payments are made and all the documents are done, the property will successfully be sold and ownership transferred to the buyer. Note that you might have to pay RPGT (Real Property Gains Tax). The rates for RPGT are as follows:
|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%|
Remember, this is just a basic guide on how to sell your property in Malaysia. When you are ready to sell your property, be sure to do your due diligence, research the matter and most importantly get a good real estate agent/advisor to help guide you through the process.
If you wish to read this article in Bahasa Melayu, click here.
Liked what you read? Check out this article next: An insight into RPGT in Malaysia