Seller Guide

1.             PLANNING THE SALE

Start with an overall view of what selling a house involves:

·          Select the good real estate sales agency

·          Make major repair

·          Clean and polish your property

·          Determine the right price

·          Listing your property online media or printing media to get more exposes

·          Be patient while the house is shown and marketed

·          Review financing status potential buyers

·          Negotiate offers

·          Close the deal

·          Move

Hire a real estate or sell the property yourself

To sell and market a house requires specialized skills, is time consuming, and costs money.
Question before you decide want to hire a real estate or sell the property yourself

·          Are you prepared to buy advertising space? Advertising is one way to let the buying public know your house is on the market.

·          If not, can you afford the time it will take to sell your house with only a sign in your yard?

·          Are you willing to stay close to home for days, weeks, maybe months to show your house?

·          Do you possess the necessary legal and financial knowledge to answer buyers' questions, negotiate a contract, or close a sale?

If you answered "No" to any of the above questions

Hiring a real estate firm to help would be the most efficient way to sell your house. They can be indispensable to you in the following ways. A real estate professional will:

·          Access the listing services, which exposes your house to all cooperating member brokers

·          Assist with pricing the house properly based on market price

·          Filter potential buyers for financial qualifications

·          Provide advices and ideas for making your property more attractive to potential buyers

·          Show your home whether or not you are available

·          Answer potential buyer's inquiry

·          Provide all offers

·          Assist in negotiation process

·          Assist in the closing process

Interview a representative from more than one firm. The following points should be discussed:

·          Are you a licensed broker or sales associate?

·          Do you list the property online media and printing media in order to reach more potential buyers?

·          How long has your company been in business?

·          What are your qualifications, experience and education?

·          How many homes has your office sold in the past three months?

·          Do you belong to any out-of-town referral organizations?

·          Names of references whose homes you have recently sold.

·          How did you arrive at your price evaluation of my home?

·          How much can I expect to walk away with?

·          What could I do to make my house more marketable?

·          How would you market and advertise my house? Whether in full detail or in attractive way

·          How often would you communicate with me?

·          What if you don't perform?

Payment of the real estate brokerage fee will be the seller's responsibility; the amount of this fee is negotiable. If another company locates a buyer, a portion of the fee goes to that office.
After appointing a real estate company, begin by supplying all the information you can about your house. The sales associate will be asking questions by potential buyers about , age and condition of property, unsettle utilities, houses sizes and a variety of other subjects. Don't hide anything, especially any defects in the condition of your property. Failure to do so could leave you legally liable.

What can you expect from your sales associate?

·          Accurate information to help set the right selling price.

·          Comments on repairs and cosmetic improvements that could help sell you house more quickly.

·          A complete marketing plan, including placement of a yard sign, entry in advertising.

·          The showing of your house to potential buyers.

·          Regular communication on the progress of the sale.

·          A professional manner and courteous attitude.

The Right Price

·          Determining the "right" selling price for your home will take some work. If the set price is too low, you could sell under market value. If it is too high, the home may not sell within your time frame, time consuming and increase in costs.

·          The "right " price is a balance between the maximum amount the current housing market will allow, your "competition," and your own time limits in selling.

·          A reasonable time frame for selling a house may be between 30 and 90 days. If a house is on the market too long, potential buyers may avoid the house, wondering if something is wrong with it.

·          An excellent first step is to have a market analysis done on your house. This information details the current housing market value in your area, showing you what houses similar to yours have sold for recently.

·          The market analysis should also include your "competition" - houses like yours which are also on the market. With this information in mind, you will also want to consider the following points before deciding:

Location

This is an important factor in pricing. Look at both the area in which the house is located as well as the surrounding neighborhood.

Features

Does your house have specific features that set it apart from other houses in the area, such as a spectacular view, a pool, mirrored closets, room additions, etc.

Age of the House

Potential buyers will want to know the age of the plumbing, furnace, roof, appliances, etc. If anything has been replaced or renovated, this could as a value added of your property and the increase the selling price.

The Current Market

Is today's market a "buyer's market" or a "seller's market"? A "buyer's market" means there are several similar houses for a buyer to choose from. Usually, interest rates are attractive and prices are steady. A "seller's market" is the opposite. Interest rates may be low or high, but housing prices are on the rise, and there are few houses to be sold.

Your Time Frame

How long do you have to sell this house? What was the average time on the market for a comparable home? Can you wait while a buyer arranges financing? Does your purchase of another home depend upon this deal closing quickly?

Tax Facts

The sellers have to pay tax for profit on disposal of property under the Real Property Gain Tax Act as shown below:-

Number of Year Tax Rate
Within 1 to 2 Years	> 30%
3 Years	20%
4 Years	15%
5 Years	5%
> 5 Years	0%

Lawyer Fees and Stamp Duty on Transfer of House Title

1.     First Schedule (Sales and Transfer): Lawyer fees are determined by the value of the house in the Sales and Purchase Agreement.

Lawyer Fees
First RM100,000.00	1% of the Loan Amount (minimum RM200 per transaction)
Next RM4.9 million	0.50% of Loan Amount
Thereafter	0.25% of Loan Amount

   

2.     Progressive present stamp duty on transfer of house title:

Stamp Duty on  Transfer of House Title
House Value	Stamp Duty
1st RM100,000.00	1%
Next RM400,000.00	2%
Next RM1.5 million	3%
Thereafter	4%

Review Financing Options

·          When the time comes to negotiate a sale, it is best to be aware of current financing available to the buyer.

·          With the help of your real estate professional, review the mortgage climate - are loans in abundance or hard to obtain?

·          If the buyer isn't able to qualify for enough money, you may want to offer a second mortgage out of your profits (if this is allowed by the first lender).

·          Does your property qualify for loans? Is your current loan assumable?

·          Does the buyer expect you to pay any of the discount points connected with the cost of his loan?

·          Determine your time limits in waiting for financing to be secured by the buyer, including the alternatives.

 

2.            PREPARING TO SELL

·          Major repairs should be completed before showing the house, if a top selling price is expected. Limit your repairs to functional parts of the house, such as the roof, plumbing, and major appliances.

·          The key words to remember in preparing your house are neat and clean for royalty to visit.

3.            SOLD

·          Potential deal for your property must be presented. Review every offer, comparing the financial qualifications and readiness to buy of each buyer.

·          When you decide what terms are acceptable, leave to your agency negotiate with the buyer. A reasonable deposit will be collected from the buyer prior to any acceptance of their purchase offer. A written agreement stating all conditions of the sale will be signed by both parties.

·          The buyer is arranging mortgage financing. The real estate company is checking on the progress of the sale.

·          Final closing day will be scheduled when all the steps are completed. Both parties must sign the final closing documents.