Selling a property in Malaysia involves a multifaceted process that requires meticulous planning, coordination with various parties, and adherence to specific timelines. To assist you in this journey, we’ve outlined a comprehensive guide detailing each step and the approximate timeframe for each stage of selling a property. If you are looking to sell your house in the shortest time, then MET Property is your best choice for you.
Recent updates in property tax legislation, such as the Real Property Gains Tax (RPGT) exemption under Budget 2023, offer substantial incentives for property sellers. Effective from January 1, 2022, individuals comprising Malaysian citizens and permanent residents are exempt from RPGT for property disposals starting from the sixth year of ownership. This reduction to 0% RPGT from the previous rates of 5% and 10% significantly benefits property sellers. For more details about property in Kuala Lumpur, check www.metproperty.com.
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Handbook for Marketing Your Real Estate in Malaysia
Clear Outstanding Payments:
Begin by settling all outstanding payments associated with the property. This includes quit rent or parcel rent, assessment tax, maintenance fees for strata buildings, and rental income tax. Promptly clearing these obligations ensures readiness for the next owner.
Average Time: Dependent on regularity in meeting payment obligations; typically, this phase can be completed within a day.
Engage a certified valuer to assess your property’s value, primarily applicable to sub-sale properties. A valuer evaluates market data, property type, and comparable property prices, offering a professional estimation of your property’s value.
Average Time: Approximately one week for the entire valuation process.
Setting the Selling Price:
While the valuer determines your property’s value, setting the final selling price involves comprehensive research. Analyse recent property transactions in your area, study market sentiment, and evaluate your property’s competitiveness against similar listings.
Average Time: Conducting research and assessing the property’s price can be accomplished within a week.
Identify Target Buyers:
Determine the type of buyers suitable for your property based on its features and demographics. This understanding will guide your marketing strategies and increase the likelihood of a successful sale.
Average Time: Identifying target buyers can be accomplished within a day.
Enhance Property Value:
Prepare your property for sale by enhancing its appeal. Consider minor refurbishments, fresh paint, lighting improvements, and garden maintenance to create a lasting impression.
Average Time: Depending on the scope of work, enhancing property appeal may take between 1 to 3 months.
Prepare Necessary Documents:
Compile essential documents such as mortgage statements, identification, sale and purchase agreements, utility bills, and property titles.
Average Time: The preparation of documents varies but can typically be completed within a day.
Engage a Real Estate Agent:
Select a reputable real estate agent with a strong track record and in-depth local market knowledge. Provide necessary documents to enable them to effectively market your property.
Average Time: Finalising an agent may vary but start the selection process early for better results.
Finding Suitable Buyers and Negotiation:
Organise open houses and negotiate terms with potential buyers. Building rapport with buyers and ensuring their satisfaction are crucial aspects of finalising the sale.
Average Time: The negotiation process varies based on mutual agreement between parties.
Consultation with a Lawyer:
Hire a solicitor or conveyancer to handle the legal aspects of transferring property ownership, preparing necessary documents, and ensuring compliance.
Average Time: Completion of sale and purchase transactions takes approximately three months after signing the Sale and Purchase Agreement (SPA).
Prepare a Letter of Offer and Earnest Deposit:
Upon agreement, prepare the Letter of Offer and receive an earnest deposit from the buyer, typically ranging from 1-2% of the property’s selling price.
Average Time: Around 1 week to a month, subject to document preparation and banking processes.
Buyer’s Housing Loan Application:
If the buyer is seeking financing, they will apply for a housing loan. Approval timelines from the bank vary but generally take around 14 working days.
Signing the Sale and Purchase Agreement (SPA):
Once the buyer secures the home loan, both parties sign the SPA. The buyer pays the remaining amount, with the disbursement process concluding within 90 days after the SPA date or upon state authority approval.
Average Time: Buyers have around 14-21 working days to sign the SPA.
Property Transfer Period:
Property transfer duration depends on property type, titles, and state approvals, ranging from 90 working days for freehold properties to up to 6-12 months for leasehold master titles.
Closing Costs Settlement:
Post-transfer, settle closing costs, including Real Property Gains Tax (RPGT), agency fees, and legal fees.
Average Time: Dependent on readiness, closing costs can be settled within a day.
In conclusion, timing is crucial when selling your property. Balancing expectations with market conditions and taking informed steps throughout the process will ensure a smoother and potentially more profitable sale.