Thinking of selling your house in Malaysia? It may seem complicated, but with the right plan, it can be a smooth process. This guide will walk you through 14 important steps, from setting the right price to transferring ownership and paying the final fees. While you can get your appointed lawyer to handle some of these steps for you, it’s still important to understand the details yourself. Whether it’s your first time selling or you’ve done it before, these clear steps, along with helpful tips, will make the process easier and quicker.
Before You Begin
- Clear Outstanding Payments
- Make sure your property is clear of any unpaid bills, such as quit rent, assessment tax, utility bills, maintenance fees, and rental income tax (if needed).
- Timeline: This can usually be done in a day if everything is in order.
- Consider Market Conditions
- The real estate market changes based on things like the economy, interest rates, and government policies. If the market is slow, you may need to adjust your expectations on the selling price or be more flexible during negotiations.
- Advice: Keep an eye on property websites like iProperty, EdgeProp or Starproperty to see how long similar properties have been listed. This will help you understand the demand for your type of property. You can also speak to a trusted real estate agent for expert advice. Avoid relying on neighbours, friends, or relatives who aren’t in the industry, as they might give speculative guesses that could mislead you.
- Consider Selling Costs – in addition to market conditions, it’s crucial to consider the costs involved in selling your property. These may include:
- Lawyer Fees: Costs associated with hiring a lawyer to handle the sale.
- Real Estate Agent Fees: Commissions paid to your agent, typically around 3.18% of the selling price.
- Miscellaneous Expenses: Any other costs related to the sale, such as repairs, marketing, or staging.
- Being well-prepared for these financial aspects can help you make more informed decisions throughout the process and ensure that you are not caught off guard by unexpected expenses.
Step-by-Step Guide to Selling a House in Malaysia
1. Get a Valuation (For Sub-Sale Properties Only)
A licensed valuer will assess your property and give you a valuation report. This report helps you understand your property’s market value, which is a good starting point for setting your selling price.
Timeline: It usually takes about a week to get the valuation report.
Tip: Hire a valuer registered with the Board of Valuers, Appraisers, and Estate Agents Malaysia (BOVAEA) for accuracy and credibility. You can choose to hire your own valuer for a more precise report. However, if you prefer not to spend extra, you can also ask your banker for an estimate based on the current market value. Just keep in mind that these estimates may not be as accurate as an official valuation.
2. Set Your Selling Price
When setting your price, take into account the valuation report, current market conditions, and recent sales of similar properties. It’s a good idea to add 5-10% to your desired price to allow some room for negotiation.
Tip: Use property portals to research what similar homes in your area are being sold for. Try to set your price within the range you see from other owners and real estate agents. Be cautious about setting your price too high above the market valuation. Doing so may scare off potential buyers, as they’ll have to cover the difference out of pocket if their loan doesn’t fully cover the asking price.
3. Identify Your Target Buyer
Determine if your property is best suited for first-time homebuyers, investors, expatriates, or retirees. Understanding who your target buyer is will help you customize your marketing strategy and highlight the key features that will attract them.
Tip: To make your listing more appealing, consider offering incentives such as free appliances or complimentary fixtures, especially for first-time homebuyers. This can help your property stand out from others on the market.
4. Enhance Curb Appeal
First impressions matter! Make sure your property looks its best by doing a deep clean, decluttering, and making minor cosmetic upgrades, like repainting or updating lighting fixtures.
Timeline: This can take anywhere from 1-3 months, depending on the amount of work needed.
Tip: Avoid making the space too impersonal; keep it warm and inviting so potential buyers can picture themselves living there. Hiring a professional photographer to take high-quality photos can also boost your listing and attract more interest.
5. Gather Necessary Documents
Get all the important documents ready, such as your Sale and Purchase Agreement (SPA), property title, bank statements, ID cards, and utility and maintenance bills from the past three months.
Timeline: This step can usually be done in a day. It’s a good idea to prepare these in advance. If any documents are missing, you may need your lawyer’s help to obtain them from the relevant government departments, which can take extra time.
6. Find a Real Estate Agent
Look for a real estate agent who specialises in your area and the type of property you are selling. A skilled agent with a solid track record can help you secure the best price and manage negotiations smoothly.
Tip: Request testimonials from previous clients and review their portfolio to ensure they are a good fit for you. Some agents may even offer advanced marketing techniques, such as creating impressive videos of your property, including aerial shots taken with drones, which can enhance your listing’s appeal.
7. Market Your Property
Your real estate agent will develop a marketing plan that includes online listings, open houses, and possibly promoting your property on popular property portals like iProperty.com.my and EdgeProp.my.
Tip: Using professional photography or offering virtual tours can greatly increase interest in your property. A skilled real estate agent will also know how to maximise exposure through social media platforms like Facebook, Instagram, and TikTok, as well as through their network of co-agents, ensuring your listing reaches a wider audience.
8. Negotiate with Buyers
Be ready to negotiate on both price and terms. Collaborate closely with your real estate agent to find a deal that works for both you and the buyer. Building trust and maintaining transparency throughout this process is essential.
Tip: Avoid being too rigid with your price, especially in a slow market. Flexibility can help you reach an agreement that satisfies everyone involved.
9. Consult a Lawyer
Engage a lawyer who will draft the necessary legal documents, including the Sale and Purchase Agreement (SPA), and guide you through the entire transfer process.
Tip: It’s best to choose a lawyer who is experienced with real estate transactions to avoid any unnecessary delays. This should actually be one of the first steps on your list. A good lawyer will not only handle all the sale details but also protect your interests. Be cautious about using a lawyer who represents both parties; while it may seem convenient and cost-effective, they can only protect one party’s interests. If complications arise, you could end up losing more money. Ultimately, it’s a choice you need to consider carefully.
10. Prepare the Letter of Offer and Earnest Deposit
Once both you and the buyer agree on the terms, the buyer will sign a Letter of Offer and pay an earnest deposit, usually 2% of the agreed selling price.
Timeline: This stage can take anywhere from 1 week to a month.
Tip: Maintain close communication with the buyer’s agent to ensure that the process moves along smoothly. This will help prevent any misunderstandings and keep everything on track.
11. Buyer Applies for a Housing Loan (If Applicable)
If the buyer requires financing, they will need to apply for a housing loan. The bank will typically conduct a valuation of your property before approving the loan, which can take up to 14 working days or more.
Tip: Encourage the buyer to get pre-approved for a loan. This step can help avoid unnecessary delays later in the process and ensure a smoother transaction overall.
12. Sign the Sale and Purchase Agreement (SPA)
Once the loan is approved, the Sale and Purchase Agreement (SPA) is signed. At this point, the buyer will pay the balance of the down payment, which is usually 8%. The remaining 90% will be paid through the buyer’s bank within 90 days after the signing of the SPA.
Timeline: This stage typically takes about 14-21 working days.
13. Property Transfer Period
The timeline for transferring ownership of the property can vary based on its title type:
- Freehold properties: The transfer is typically completed within 90 working days.
- Leasehold properties: This process requires consent from the state authority, which can take 1-3 months. After that, the actual transfer period is also around 90 days.
Tip: If your property has a master title, be prepared for a longer process; it can take up to 12 months for leasehold properties. It’s important to stay informed during this period to manage your expectations.
14. Settle Closing Costs
Once the property transfer is complete, you’ll need to finalize all closing costs. This includes:
- Real Property Gains Tax (RPGT): This tax applies depending on how long you’ve owned the property and your residency status. The rates and exemptions can change, so it’s essential to check the latest information.
- Agent Fees: Real estate agents typically charge 3.18% of the selling price, which includes Sales and Services Tax (SST).
- Legal Fees: These fees are calculated based on a sliding scale depending on the property’s price.
Tip: Consult a tax professional to understand the current RPGT rates and any exemptions that might apply to your situation. Being informed can help you budget effectively and avoid any surprises.
Additional Tips
- Choose the Right Time to Sell: Timing can significantly affect your selling price and how quickly your property sells. Pay attention to market conditions and economic factors that may influence buyer interest.
- Be Flexible with Your Price: If the market is slow, being open to negotiations and adjusting your price can help speed up the sale. A small concession can lead to a faster closing.
- Understand the Buyer’s Perspective: Try to anticipate the needs and concerns of potential buyers. This understanding will help you create a more appealing offer, making your property stand out in a competitive market. Consider what features buyers are looking for and how you can highlight those aspects in your marketing strategy.
Common Questions
How long does it take to sell a house in Malaysia?
The timeline varies widely, but on average, selling a house can take anywhere from several weeks to a few months. Factors such as location, current market conditions, and the asking price all play significant roles in determining how quickly your property sells.
Can I sell without a real estate agent?
Yes, you can sell your property without a real estate agent, but it requires more effort on your part. Agents have established networks and market knowledge that can help expedite the selling process and ensure you get a fair price.
What happens if the buyer backs out after signing the Sale and Purchase Agreement (SPA)?
If the buyer backs out, they may forfeit their earnest deposit. Additionally, you could potentially take legal action for breach of contract, depending on the terms outlined in the SPA.
Disclaimer
The information provided on MyPropertyPlaces.com is for general informational purposes only and should not be construed as professional advice. While we strive to keep the information accurate and up-to-date, we make no guarantees about the completeness, reliability, or suitability of the information contained on this website.
Users are encouraged to consult with qualified real estate professionals, lawyers, and financial advisors for specific advice tailored to their individual situations. MyPropertyPlaces.com is not responsible for any losses or damages arising from reliance on the information provided. All real estate transactions involve risk, and users should conduct their own research and due diligence before making any decisions.
