Selling Your Property

How much is it worth now?
The current value of the property should not be based on its purchase price. It should be higher and do take into account the costs that would be incurred in the course of selling a property. Check iProperty.com.my and gauge the price that most sellers are going for, and see if it matches the minimum return-on-investment that you are expecting.

Get it appraised
Get a property appraisal done by a certified valuer from a real estate agency as well before inviting potential buyers to view the property. This will provide you with a more accurate indication of what the selling price in the area is and also details of other recent transactions involving similar properties within the vicinity.

Make it look good!
First impressions matter. Be sure that your property is in a good shape by fixing everything that needs to be fixed, giving the place a solid spring-cleaning and throwing a fresh coat of paint on the walls. Don't underestimate the power of aesthetic appeal as they attract the attention of potential buyers. More importantly, these buyers will remember your property! Make potential buyers want to live there!

Advertise
Put an ad in iProperty.com.my. Alternatively, use the services of a reputed property agent to cut down on the time and work involved on your part. These agents will advertise the property for you, vet through potential buyers, negotiate with them, and complete the paperwork on your behalf, once the sale is concluded.

Legal advise
You could appoint a lawyer at the same time as your agent. In most instances, sellers only appoint a lawyer when they have secured an offer. Appointing a lawyer right from the beginning could help avoid delays and allow time for the collection of necessary documentation involved in transferring ownership of your property to the new buyer.

Let the viewing begin!
Viewings are usually conducted in the evenings and on weekends as this is the time when prospective buyers are available.

Accepting an offer
If a buyer is interested, he/she will make an offer to buy it. This is normally done through negotiations with your estate agent; if you are handling it yourself, then the offer will be made to you directly. The buyer does not necessarily have to offer the asking price. If you get a private offer but you have signed a contract with an estate agent, you may still have to pay professional fees, depending on the kind of contract you have. Many buyers will make an initial offer below the asking price, so you should expect to negotiate. However, when there is a lot of demand, some properties may eventually sell for more than the original asking price.

The price you are likely to get usually depends on:
• Whether the asking price is realistic compared to similar properties
• How quickly the buyer wants to move
• Whether property prices are rising
• Whether your property is in a popular area

Letter of Offer
Some real estate agents will ask the buyer to pay an earnest deposit of between 2-3% of the offered sum when they make an offer and signs a 'Letter of Offer to Purchase' or an 'Agreement To Purchase'. The real estate agent normally keeps 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.

Sale & Purchase Agreement (SPA)

After accepting an offer, you or your estate agent will need to give your lawyer certain information to begin the legal preparations for the sale. When the buyer executes the SPA, the buyer will pay the balance of the first 10% of the purchase price (less than the earnest deposit). The documents will then be forwarded to you for execution and then stamped. This must be done within 14 days of the date of the signing of the 'Letter of Offer to Purchase'.

Based on the standard terms in SPA, the remaining 90% will be payable to you within three months from when the SPA or three months from the SPA becomes unconditional.

Sold!

Once all payments have been made and all documents are finalised, the property will successfully be transferred to the buyer. Do note that you might need to pay Real Property Gains Tax (RPGT).
Effective 1 January 2013, gains from the disposal of residential and commercial properties are taxed depending on the holding period of properties.