I AM THINKING OF PUTTING UP MY HOME FOR SALE BUT I STILL HAVE AN OUTSTANDING MORTGAGE. WHAT IS MY FIRST STEP?
You will need to find out how big your outstanding mortgage is and if there are any early redemption penalties. Also, you must obtain a rough estimate of the current market value of your property and what will be the net profit obtained after minusing out the outstanding mortage payments. In addtion, you have to bear in mind that chargeable assets (properties) sold less than five years after acquisition will be liable to Real Property Gains Tax (RPGT).
HOW DO I DETERMINE WHAT PRICE DO I SELL MY HOME FOR? WHAT ARE THE PRICING STRATEGIES FOR SELLERS?
Carry out your research and get to know the local market inside out. Get a few real estate agents to give you a valuation of your property. The highest value is not necessarily the best, however. Ultimately, you will have to keep an eye on what the other asking prices are in the area. Buyers will usually try to negotiate a discount, hence it is advisable to top up 5-10% to the figure you are prepared to accept.
WHAT CAN I DO TO BOOST MY HOME VALUE AND SELL IT OFF FASTER?
You will have to show off your home to sell it faster. To do so, you will have to prepare it for staging – tidy up and get rid of unwanted items, give it a fresh coat of paint, fix those little damages and get some renovation works done. An added plus is that you will be able to enhance your property’s value as well.
WHAT OTHER PROCESSES AND DOCUMENTS ARE INVOLVED? MUST I HIRE A CONVEYANCER?
It is recommended to hire a solicitor or conveyancer to handle the legal work in transferring ownership of the property. He or she will prepare the necessary documents for you and advice on what are the processes involved.
You will need to provide the signed offer agreement, which is the first document with all the agreed terms and agreements included therein. Your lawyer will also obtain the redemption statement from the bank and prepare all the necessary legal documentation to transfer the property title to the buyer. The sale and purchase transaction would be completed approximately three months after the Sales and Purchase Agreement is signed.
This article was first published in the iProperty.com Malaysia September 2016 Magazine. Get your copy from selected news stands or view the magazine online for free at www.iproperty.com.my/magazine. Better yet, order a discounted subscription by putting in your details in the form below!