Methods of Buying Property In Malaysia

In Malaysia, the two most common way to buy residential property is from the developer (during launch of housing development of condo) or via private sale. Private sales can be a direct sale between 2 parties or through a real-estate agent.

Here we give description of more ways to buy homes. And all of them are available in Malaysia. So if you’re looking to enter or sell in the market, these options may be able to get that 10% or 20% better price. (For further reading, check out Sarah Beeny’s Property Ladder)

For this post, let’s assume you’re looking to buy a house.

From the developer– this is as mentioned above, buying from the developer. For tips on sieving for good companies, read my earlier post. Generally, ask around with your friends, colleagues and industry personnel about your intended property, remember knowledge is power.

Via agents – First you contact several real estate agents specializing in the area you want. Explain clearly to them what you want (price, location, type of property) and check with periodically to ensure they don’t forget about you. Build a good rapport with your agent, their expertise and contacts is essential in getting you the right deal. When you are shown a property you really want, don’t dilliy dally! Put in your offer as soon as possible (after thinking it through) or the property may be sold by the time you decide.

Auction – This process is fast and furious and there can be pitfalls. Be sure to go with someone experienced and you can trust if you are unsure. A lot of it is dependent to luck, but you need to do the tiring legwork and paperwork before that you can land that good deal. The golden rule is to set your top limit and STICK TO IT. Another thing to remember is that vendors may well put up a property for say if there are complications. Therefore, know the background before you commit anything.

Do-It-Yourself – This may be a good way of finding property although you risk wasting a lot of time as vendors then to colour their description of the property they are selling and describe it in a totally unrealistic way over the phone. The best way is to frequently drive around areas you are targeting and seek out those private ‘for sale’ signs. This way you save on agent’s fees. But again, this is time-consuming and frustrating.

Newspapers – This is a good a way to have a feel of the market pricing of a particular area. Papers will carry details of private sales and auctions. But try to study the property section of the papers for few months before buying – that way you can be relatively confident of not only catching the right property of when it comes up but also that the sale price you are hoping for is not too far way off the mark.

The Internet – This media of property transaction is beginning to take-off here. There are a few good local sites, some focusing on second-hand market, some are agents for new launches, some specialize in auctions. Also, the internet is also a good place to find out more about developers, and to learn more about properties and the industry.