Through rain and shine and the ups and downs, your house has been a uniquely valuable place for you to grow and live in all these years. But now, it’s time for a new adventure for it!
If buying a house was considered a big step, selling a house is just as big and important. Be it the childhood home you grew up in or the first property you purchased, you want to reap the benefits of selling it – the value and money.
So, how do you sell a house? Do you price it based on your ideal profit margin? Should you hire a professional to photograph your property? What about the documents?
To answer all these questions and more, here’s a quick guide on how to sell a house in Malaysia!
How To Sell Your House In 6 Quick Steps
1. Research the market value and set a price
The first thing to do is to set a selling price. For an accurate number, get a property agent or valuer to help you assess the property’s value. Remember, your house and your neighbour’s may not be valued the same because of factors like the number of rooms, home renovations, the condition and dimensions of the house, etc.
Once you have a value and price, consider the legal fees, agent fees, Real Property Gains Tax (RPGT), lock-in period penalty, and other costs. Be prepared for negotiations as well – if an interested buyer offers you an amount lower than expected, will you take it?
To get an idea of the current market selling prices, compare similar properties for sale on Mudah.my. Review them from the lowest to highest prices, and make sure the property is identical to yours for a closer comparison.
2. Hire a property agent
A property agent does more than find a buyer. They promote your property, help you negotiate the deal, offer valuable insights, solve disputes, and even use their widespread connections to look for a professional valuer or lawyer to carry out the sale.
As a seller, you have the rights to sell exclusively, which means hiring only one agent or agency to help sell your house, as opposed to having multiple different agents. If you do decide to hire an exclusive agent, your property will be prioritised by said agent who will market it well to guarantee a sale.
If you choose not to hire one, you can skip this step and post an ad on Mudah.my to list your property for sale. An agent will ease your work and time though, so it’s advised to seek their help to ensure a smooth sale.
P/S: Before picking a Real Estate Negotiator (REN) or Real Estate Agent (REA) to help you sell your property, check that they are certified and registered in the LPPEH database for property agents and firms.
3. Spruce up your home and prepare for viewings
Make your house presentable and appealing by decluttering and tidying it so prospective buyers will feel compelled to place a deposit ASAP! Photograph the property at its best angles and in natural light to show its best features.
To prepare for on-site viewings, fix leaky faucets, replace fused bulbs, clear cobwebs, and trim the grass. Give the walls and grilles a fresh coat of paint, power-wash stubborn stains, replace broken tiles, oil the hinges, and don’t forget to smile and greet prospects kindly.
Not sure who to call to help you spruce up your home? Don’t worry, you can find a wide list of home improvement services on Mudah.my to help, from renovations to roro bins and more.
4. Find a buyer and negotiate the sale
When you’ve found a suitable buyer, it’s time to negotiate and finalise the terms of the sale. These include the selling price, furnishings (if any), handover date, and more. Price negotiations depend on factors like the urgency of the sale, your selling price, and the present state of the property market.
On average, selling your house in Malaysia can take about 4-6 months but may differ based on the property title, if it’s to finalise the deal or transfer, and the market’s supply and demand. Be patient and take it step-by-step.
5. Prepare and sign the necessary documents
If you’re satisfied with the buyer’s offering price, the next step is to ready the paperwork. At the same time, the buyer will apply for a mortgage loan and get approved.
The first document is the Letter of Offer which outlines the buyer’s desire to buy the property. This stage requires a 2% – 3% earnest deposit and is part of the initial 10% downpayment of the house.
Next is the Sale and Purchase Agreement (SPA), with all the information about the transaction: details of the buyer and seller, the address and dimensions of the property, the manner of payment, and the Vacant Possession, among others. A Transfer of Ownership will also be required.
6. Clear your closing costs
Once the sale is complete, it’s not time to celebrate just yet – clear your closing costs first before you pop the confetti. These are the legal fees, agent fees, and RPGT.
If you have budgeted for these costs earlier when setting the selling price of the property, it will be easier to calculate your expenses of the sale and total returns. Only once you’ve settled all these costs can you enjoy the fruits of your labour.
Helpful Tips Before You Sell Your Property
Before you list your house for sale, remember why you’re selling the property. Perhaps it’s time to move to a new space, or the market value is at its absolute peak. Avoid being too emotional or sentimental about the property, as it could prevent you from moving on and finalising the sale.
Moreover, be realistic about the selling price to avoid any disappointments. If the property is valued at RM600,000 but you want to sell it for anything higher than that, you need a strong justification on why it’s that valuable. Happy buyer-searching and happy selling!