Just like buying a house, selling one takes time, patience and lots of planning to ensure both seller and buyer get what they want out of the deal. If you are selling your house for the first time, the following information would be useful to you.
Timing
As a seller, you would want to make a profit from your sale. How much profit you make would depend on the property market conditions in which you sold your property. Here are some indicators on the right time to sell your property:
a) Mortgage lending rates – Many people would choose to buy residential properties when the housing loan rates are low. Hence, the demand for houses would increase, presenting good opportunities for sellers.
b) Property news – Keeping taps on the latest developments in the property industry will give you an idea of the perfect time to sell your property. Such news could be upcoming projects in the area which would significantly increase the value of your property. Industry updates can be found in newspapers or property portals.
Starting the Process
Pricing
Once you have decided when to sell, pricing your house is the next step. You can do this by checking for the asking price of similar properties in the same area. This can be done by browsing through property sale advertisements in newspapers or popular internet property websites. That way, you can compare prices and come up with the best sale price for your property.
Alternatively, you can hire property valuers. These professionals will consider many factors such as the economic condition at the time of the sale, state of the property, location etc. to provide a fair and accurate valuation of your property.
Marketing
There are many ways to market your property. You can put up signboards, advertise in newspapers or property portals or distribute flyers. Signboards are quite effective as it provides a means for a potential buyer who is scouting for a house in the area to contact the buyer. Putting up your ad in online property portals is a good way to leverage on the wide reach of the media. You can also hire a property agent to handle this process for you.
Legal Procedures
There are many legal aspects that you need to be aware of when selling your house. Let’s take a look at the main areas:
Sales & Purchase
Your property agent may ask the buyer to pay an earnest deposit of 2% to 3% of the offered sum when they make an offer and signs a Letter Of Offer to Purchase or an Agreement To Purchase. After accepting an offer, your appointed solicitor will start drafting the Sales & Purchase Agreement (S&P).
The buyer is required to pay the balance of the first 10% of the purchase price (less the earnest deposit) upon signing of the S&P. You would also need to sign the agreement and get it stamped. The balance of 90% will be payable to you within three months from the date of the S&P.
Real Property Gain Tax (RPGT)
As of 2014, citizens and permanent residents of Malaysia are required to pay a property gain tax of 30% on a property which is sold within three years of purchase. For properties sold on the fourth year, a 20% tax rate applies. The tax rate for the fifth year is 15%. If the property is sold six years after its purchase, there is no need to pay RPGT.
Happy Selling