Sell your property guide

Sell your property guide

The purpose of property investor to invest in property is to roll their wealth by putting the effort into their property investment. Time and money has been invested in this wealth multiplying tool. Besides, property investors deserve their investment gain for all the time and money spent into their properties. Now, you have a property located in Old Klang Road and you want to sell your property because the price is right for you to reap what you have sow. But, how familiar are you with the selling process?

Here’s some guides on the selling process to ensure you make no mistakes, loss and gain maximum profit. 

Current property value

Firstly first, you would like to know what is the current property value in the market. Make use of the internet to retrieve the information by gauging the value in the market, you can access to property websites like PropertyGuru to measure the benchmark. If you have a property agent that’s working for you, you can get them to run the numbers for you. From there you will know the amount of return you will be expecting. 

Appraise your property

Get a certified valuer, preferably from real estate agency to get your property appraise. Purpose of the valuer is to give you the most accurate indication of the selling price, this way you will be able to make comparisons. You will be able to compare the price around the area and also transactions similar to your property type.  

Fix it

Before bringing your potential buyer for a tour in your unit, make sure your property is in good shape and condition. Throw in new paint for the washed off looking wall or fix the loose door knobs. The power of aesthetic appeal could help you increase your property value. When your unit is fixed or furnished, you are making your potential buyers feeling comfortable when touring the unit.

Advertising

With the advance of internet, advertising is everywhere and digitalize, leverage it on the online property portal. Put up your property on the listings like PropertyGuru. Get an agent to market your property and share some highlights of the property. Agents will also help you to filter the leads or potential buyers and negotiate the deal. Most importantly, agents will help you get through the necessary paperwork.

Legal advises

In most cases, seller starts appointing lawyer after they secured the offer to get through the legal documents like transferring ownership of your property and other legal stuffs to go through. Appointing a lawyer before the transaction happens will shorten the transaction period. 

Property viewing

So, all the fixing is done in proper and you’re ready to bring your potential buyers for a tour in your property. Usually viewing is being conducted during the weekends, coordinate with your agents on the viewing to ensure the unit is available for agents. Make sure your agent has a set of keys. 

Accept offer

Here’s the exciting and eager part which is accepting offer. If those viewers are interested to buy, they will make an offer to buy it. Then here comes the negotiation part, where the buyer and seller will have to go to and fro with their agents to negotiate for the best price. If you are lucky, the buyer will not necessarily negotiate for the price. Most of the time, most buyers will make an initial offer below the asking price. But, if your property is in demand or in a hot location like Old Klang road, seller has the power to get the best price offer. 

Letter of Offer

When both parties have verbal agreement on the price, seller agent will present the ‘Letter of offer to purchase’ to the buyer to sign off and put up earnest deposit between 2% to 3%. Real estate agent usually will keep safe the earnest deposit into the client’s account as stakeholders from the date the offer is made until the execution of Sales & Purchase Agreement. 

Sale & Purchase Agreement (SPA)

Next move is where your agent will need to inform your legal advisor or lawyer to prepare for the sale. Then, the buyer will start executing the SPA, buyer will pay the balance of the first 10% of the purchase price. The document will then be needed to seller for execution and stamped and it must be done in 14 days of the date of signing of the ‘Letter of offer to purchase’. According to the standard terms in SPA, the remaining 90% will be payable to seller within three months from the SPA execution or else the three months from the SPA is unconditional.

Sold and done

When all the payments are done and documents are completed, your property will be successfully transferred to the new buyer. Congratulations! But not just yet, check if you will need to pay for Real Property Gain Tax (RPGT) where the gains from disposal of residential and commercial properties are taxed based on the holding period of the properties. Click here for the RPGT schedule.