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How to Sell Your Property
The most usual way to sell
a property in Malaysia is through estate agent. Some sellers choose to
market their properties privately to save on the estate agent
commission but this solution has the following disadvantages:
- it can be very time-consuming as you will have to do all the work
yourself, including advertising and showing the property to
prospective buyers.
- it may take longer to sell your property as you are likely to get
fewer viewings than by letting professionals market your property.
- you may end up selling at a lower price as you are likely to get
fewer viewings and therefore less interest in your property.
- security issue as crime may happen during showing.
Selecting Estate Agents
Use several estate agent to market your property as this will result
in your property being more widely advertised. You will only pay
commission to the estate agent who actually sells the property so
using several estate agent will not result in higher costs. However
using too many estate agent, say over 3, may discourage the estate
agent from working hard on the property as they may feel they are
unlikely to be the ones who will be selling your property. Select
estate agent who specialize in your area or property type as their
client list will have the right prospective buyers for your property.
The easiest way to find suitable estate agent is to look at
advertisements for similar properties on websites like
www.RealEstateAgent.com.my or in the printed press (like the Star
Classifieds or property magazines) and contact the agent. Or drive
around your area and look for agents’ signboards on properties for
sale.
Help the Agent Help You
When giving your property details to the estate agent emphasize your
property’s individual selling points. Think about any positives, from
a large kitchen to an alarm system, or a good school nearby. If
possible, take digital photos of your property which the estate agent
can then send to prospective buyers or use in advertisements.
Selling Costs
Estate agents' commission:
A maximum of 3% of the sale price of the property (subject to a
minimum fee of RM1,000 per property)
Property sale & purchase legal documentation fees:
- 1.0% on the first RM100,0000 of the property's selling price
(subject to a minimum fee of RM300)
- 0.70% on the next RM850,000
- 0.60% on the next RM2,000,000
- 0.50% on the next RM2,000,000
- 0.40% on the next RM2,500,000
Where the consideration or adjudicated value is in excess of RM7,500,000
(Negotiable on the excess but shall not exceed 0.4% of such excess)
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Example:
If the property price is
RM550,000, the calculation is:
First RM150,000 @ 1.00% =
RM1500.00
Next RM400,000 @ 0.70% =
RM2800.00
Total legal fee for
Sale & Purchase
Agreement : RM4300.00
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Some sellers do not
instruct a lawyer and therefore save on the legal fees. This is
possible because the buyer’s lawyer will draft the Sale and Purchase
Agreement (SPA). However, not using a lawyer is not recommended unless
you really know what you are doing. The SPA may seem simple enough to
read but you will be surprised how often your lawyer will point out
something that you would not have noticed that could have a material
impact.
Early Redemption Penalty:
Before selling, check your mortgage policy to determine whether any
penalty for early redemption may be applicable. Some banks will
charged as much as 3% on the amount of the mortgage sum during its
locking period.
Real Property Gains Tax (RPGT):
As part of the effort in reducing the speculative activities in
the property market, it was proposed under Budget 2014 that the real
property gains tax (RPGT) to be revised as table below:
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REAL PROPERTY GAINS TAX FOR 2014 |
Personal (citizen &
PR) |
Company |
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Disposed within 3 years |
30% |
30% |
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Disposed in 4th
year |
20% |
20% |
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Disposed in 5th year |
15% |
15% |
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Disposed after 5
years |
0% |
5% |
For non-citizen,
disposal within 5 years is subject to a flat RPGT of 30%. Disposal
after 5 years, RPGT is at 5%.
The RPGT rates increase is applicable to disposal of property taking
place on or after 1 January 2014. |
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