Buying property on a budget? Here’s what your agents can help you with



Find out ways your agents’ expertise can come in handy when you’re buying property on a shoestring budget

For average Joes and Janes like us, a property is likely to be the most expensive purchase we’ll ever make in our lifetime. Over the years, you’ve undoubtedly thought about the features that you desire – maybe you are fond of a huge master bedroom with walk-in closets, or perhaps an outdoor swimming pool. But, the goal of home ownership may seem like a pipe dream if you are on a tight budget.  

However, there are ways to make that dream come true if you enlist the help of the right property agent.

Since they’re the expert in the industry, they might be able to help you own a property, even if you’re on a shoestring budget. Think of them as a navigation system if you will. You can use a printed map and still arrive at your destination safely, but a GPS can take you to your destination through the shortest, most efficient route and save you money.

We asked 5 winners of Agents Advertising Awards 2018 (AAA) to share with us ways they can help you get the best deal when buying a property under a tight budget.

1. They can be your master negotiators

Let’s face it, buyers have the tendency to think that a realtor’s sole existence is to please the sellers and, as and as a result, treat them as the enemy.  Keep in mind that your real estate agent serves as intermediary, or a middle person if you will.  This keeps personalities and emotions from becoming a factor, which is often a big issue.

“We, agents can actually help you negotiate with the landlord on a good deal since we have the expertise to talk our way through to strike a deal that can match the buyer’s budget,” shares Vic Tan, Team Leader of Tech Estate.

2. They can help you plan your purchase

An experienced property agent should have a substantial number of listings ready under their belt, so they can give their buyers a wide selection to choose from. Therefore, it is important to decide on your requirements and concerns in advance.

“You should not hesitate to share your concerns and requirements with us,” advices Daniel Yap, Senior Leader of Ideal Property Group. “This will help the property agent to come up with the right plan to buy a property that fits the buyer’s financial capability.”

Desmond Gan, Senior Negotiator of Full Homes Realty, shares the same opinion, “I always consult my client first before I propose a property to them. I talk to them to see what are their main concerns – be it fund, loan application issues or others. To be honest, property hunting will be a lot easier if we know exactly what are our client’s needs and wants. From there we can scout the best house for them.”

3. They can introduce you to the right people for your financing needs

Not only real estate agents are well-equipped with knowledge on the market price and the latest transactions, they are also well-connected. An agent would find it difficult to survive in the real estate business without at least one dependable mortgage lender to refer as one of the biggest factors of buying a home is the financing end of the arrangement.

“Agents are able to help buyers by introducing bankers to them and measure how much they can get from the bank. This helps to secure the best amount of loan for the property and ensure that the transaction closes smoothly, without hiccups,” shares Jenny Liu, Senior Negotiator of Greenfield Properties. 

4. They can teach you how to purchase a property on a budget, your budget

Their experience and knowledge are your greatest asset here. “One we have determined how much they can afford based of their Debt Service Ratio (DSR), then we can determine the best property for them,” says Joseph Chan, Team manager of MIP Properties. 

“Usually for first time home buyers with a tight budget, I would recommend them to purchase a property below RM500, 000 because there are incentives offered by the government like discount on stamp duty for both SPA and legal fees.

“I would also advise them to focus on a property that is outside of prime areas which are cheaper, bigger and has the potential to develop in the future. Next, if the buyer has difficulties preparing the 10% down payment, we can suggest to them new project developments as developers tend to give discount on down payment as well as minimal charge on SPA and loan agreement fees.”

If the buyer is struggling to come up with the 10% down payment, Tan suggests that the buyer pay only 5% first when signing the Sales and Purchase Agreement, and the remaining 5% can be paid by withdrawing from the buyer’s EPF account.


ALSO READ: 5 tips and tricks to sell your house faster from real estate agents

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