9 Easy Steps For Selling Property In Malaysia

PropertyGuru Editorial Team
9 Easy Steps For Selling Property In Malaysia
Selling a house shouldn’t be a stressful experience. But making sure the process goes smoothly is just as much about good preparation, as it is about market conditions.
You want to understand what you’re getting into, the processes involved, and what you need to do to ensure there are no bumps along the road.
So, without further ado, here’s how to sell property in Malaysia in 9 easy steps!

Step 1 – Repair, Remodel, Redecorate

You want your property looking its BEST before you put it up for sale. Remember, you’re going to be entering a competitive market, which means you want any advantage to maximise your potential sale price.

1) Repair

This applies to any faults that you’ve learned to live with; paint up that old stain in the corner that’s now part of the furniture, and oil that squeaky gate that’s become a fond "welcome home" greeting.
Prospective buyers are going to be assessing your property as a major purchasing decision, and even the smallest little faults can sometimes put people off spending big money.

2) Remodel

How to sell property in Malaysia, Legal fees for selling property in Malaysia, Selling property, Selling property in Malaysia, Sell property Malaysia, Property for sale Malaysia, Order for sale Malaysia, Selling a house, Selling property, Houses for sale
Try to optimise the layout to maximise its selling potential. A good property agent can go a long way to helping with this.
For example, advising you to clear out the junk room and turning it into a second bedroom for sellers to see.
Rooms such as the kitchen can be a particularly good investment, where a bit of upfront financial commitment can deliver a really positive return.

3) Redecorate

We all get familiar with the welcoming feel of our own home, but remember, you’re trying to convert a buyer, so you’d need to have a more "finished" touch.
If turning your dark blue walls into a light and airy white opens up the space and adds value to your home, it might be a commitment worth considering.
People want to imagine what they can make of your home, not just see what you’ve done with it yourself.
You can find out more about how to add value to your home with our guide on the 10 Ways To Increase The Value Of Your Property.

Step 2 Property Valuation

How to sell property in Malaysia, Legal fees for selling property in Malaysia, Selling property, Selling property in Malaysia, Sell property Malaysia, Property for sale Malaysia, Order for sale Malaysia, Selling a house, Selling property, Houses for sale
With all the preparation work done and dusted, it’s time for that all-important property valuation.
This is an official estimate from industry professionals who analyse how much your house is likely to be worth – hopefully, a little bit extra, with all the effort you put in at Step 1!
A good property agent will be able to give you an indication of a reasonable asking price for your house. If you want a more official valuation, you can hire a professional valuer from an authorised firm.
As a seller, you can contract an individual directly yourself, or most reputable property agents should be able to help arrange this for you.
These experts look at the type of property you own, the condition, any special circumstances, then compare that against recent transaction prices in the area to come up with a valuation.

PropertyGuru Tip

The home loan that your prospective buyer is offered will be based on an independent valuation undertaken by their bank.

That means if you’re asking for RM200,000, but the property is valued at RM150,000, the home loan amount will be based on the official valuation figure.
Since a home loan is usually offered at 90% of the valuation, this will result in a home loan offer of RM135,000 in those circumstances.
That leaves a significant shortfall between what you want, and the loan that a buyer can get.

Step 3 – Select Your Real Estate Agent

How to sell property in Malaysia, Legal fees for selling property in Malaysia, Selling property, Selling property in Malaysia, Sell property Malaysia, Property for sale Malaysia, Order for sale Malaysia, Selling a house, Selling property, Houses for sale
The next step to sell a property in Malaysia is to find an outstanding real estate agent. If you’re looking to take Step 2 seriously, there’s a chance you’ve switched these steps around a little bit.
A real estate agent is invaluable. They spend their working life living and breathing property (well, not literally).
Finding the right agent is about identifying a professional who understands you, understands your market and area, and crucially – someone you trust and respect. The benefits of a real estate agent are huge.
Sure, they’re going to charge you for their work (2-3% commission is generally standard) but it could make all the difference in whether your house selling process is simple, or simply terrifying.
The best agents can give you guidance on price, how to improve your property so it sells, and will go out of their way to ensure your property is as visible as possible to buyers.

Step 4 – Advertise Your Property

How to sell property in Malaysia, Legal fees for selling property in Malaysia, Selling property, Selling property in Malaysia, Sell property Malaysia, Property for sale Malaysia, Order for sale Malaysia, Selling a house, Selling property, Houses for sale
The next important step in the order for sale in Malaysia: the advertising! You’re unlikely to sell your home if nobody knows it’s for sale.
Classified adverts in newspapers and the old traditional methods can still be helpful, but ultimately, if you’re looking to list a property for sale, there’s no better place than a platform like PropertyGuru!
An important side note: You can only list your home on PropertyGuru through an accredited agent, so make sure you choose one wisely!
A good agent will not only be able to advise you on what price to list, but also be able to boost that visibility by listing on PropertyGuru. Don’t overlook the simple things too.
Word-of-mouth (or word-of-social-media these days!) can be a powerful tool to help boost visibility. Get your friends and family to spread the word of your property for sale too.

Step 5 – Appoint A Lawyer

It’s better to get a lawyer early, than realise you don’t have one when the legal bits are due.
Legal fees for selling property in Malaysia involves complex paperwork, particularly when it comes to understanding essential documents such as the Sale and Purchase Agreement (SPA).
Legal fees are covered for the sale of transfer of property under the Solicitors’ Remuneration (Amendment) Order 2017 (SRAO). That means there’s a set fee you should be paying:
How to sell property in Malaysia, Legal fees for selling property in Malaysia, Selling property, Selling property in Malaysia, Sell property Malaysia, Property for sale Malaysia, Order for sale Malaysia, Selling a house, Selling property, Houses for sale

Step 6 – Select A Buyer

With your house sparkling and shiny, and your agent using their considerable professional experience to promote it, hopefully it won’t be long until you’ve got prospective buyers through the door!
It’s important to keep your expectations realistic in terms of timelines. It’s unlikely your house will sell on day one.
On average it can take 3-4 months to sell a home in Malaysia (depending on if you’re talking about concluding the deal or concluding the transfer), although there are common-sense ways to speed up the selling process.
Supply and demand is a big part of that – a highly-desirable bungalow in Bangsar is likely to sell faster than a secondary market sale of a condominium in the middle of nowhere.
Choosing the right buyer isn’t always down to the highest offer. If there are multiple offers on your house, it’s sometimes the case that the lower offer is more favourable.
This could be because the buyers aren’t tied into selling their own home before they have the funds to pay you, or even that you’re making a decision on who might best fit into the community around you.
That doesn’t mean you should take an offer without negotiation, of course! Your agent should be able to advise on how best to manage this situation.
How to sell property in Malaysia, Legal fees for selling property in Malaysia, Selling property, Selling property in Malaysia, Sell property Malaysia, Property for sale Malaysia, Order for sale Malaysia, Selling a house, Selling property, Houses for sale
If the offer is already above your wildest dreams, then snap it up as soon as you can! If the agent thinks there’s room for negotiation, they will likely push for that in the smartest way.
Remember your agent gets a percentage of your sale, so in many ways, it’s in their own interest to get the best (and reasonable) price, without letting wild expectations get in the way of a deal.

Step 7 – Prepare The Documents

Your lawyer, together with your agent, will be able to advise you of all the necessary legal documents required for a sale.
This will include the Sale and Purchase Agreement (SPA), as the key document on which the sale is based. This will include points like any furniture or fittings that form part of the deal.
Before the SPA, however, comes the Letter of Offer/Letter of Intent to Purchase. This sets out the buyer’s intent to purchase the home, and usually comes with a 2%-3% good intention payment.

PropertyGuru Tip

This good intention payment is also known as an ‘earnest deposit’, held by a neutral third-party, till everything is settled before releasing it.

This document will detail the property, address, price agreed, owners, buyers, and date before which the SPA must be signed.
How to sell property in Malaysia, Legal fees for selling property in Malaysia, Selling property, Selling property in Malaysia, Sell property Malaysia, Property for sale Malaysia, Order for sale Malaysia, Selling a house, Selling property, Houses for sale
The SPA is usually required to be stamped within 14-21 days of the signing of the Letter of Offer.
This will also invoke payment of any amount outstanding from the required 10% down payment due at the completion of the SPA.
The remaining 90% is due for payment within 30 days of stamping the SPA, although this can be modified by prior consent in the SPA.
You can find more about documentation with our handy guide on the Letter of Offer and SPA.

Step 8 – Understand The Financial Obligations

Property is subject to Real Property Gains Tax (RPGT), meaning you will have an obligation to pay tax on your property sale.
How much tax you pay depends on your own status, and the length of time you have owned the property.
Technically this is the last bit of the puzzle, but it’s worth considering before everything is finalised just so you understand your obligations. The most recent RPGT rates can be found below.
0-3 years
30%
30%
30%
3-4 years
20%
30%
20%
4-5 years
15%
30%
15%
5+ years
5%
10%
10%
One further consideration for some sellers is their existing home loan. Some home loans have what is known as a ‘lock-in period’, where you must pay a penalty for selling within a set period of time (often the first 5 years).
Check your own home loan terms and conditions to ensure this doesn’t apply to you!

Step 9 – Loan Disbursement

How to sell property in Malaysia, Legal fees for selling property in Malaysia, Selling property, Selling property in Malaysia, Sell property Malaysia, Property for sale Malaysia, Order for sale Malaysia, Selling a house, Selling property, Houses for sale
GIVE ME THE MONEY! Sorry. We got a bit excited there, which is fair enough, because by this step, you’ve only gone and sold your property! You’re probably going to want to be paid.
With all the necessary legal steps complete, the buyer’s bank should have met its conditions to release the loan.
This payment step, known as ‘loan disbursement’, will see funds paid directly from the buyer’s bank to the seller’s bank.
Payment of the home loan will also trigger the release of the final documents of transfer. The timeline for this final transfer process can depend on the type of title and property involved.
Freehold properties with a strata or individual title tend to be faster than a similar leasehold property. With all that complete, it’s time to move on to your next property adventure!

All this house selling sounding exciting? It’s time to find yourself an agent! Or maybe you’re just ready to discover your new home? Good luck – no matter what stage of the journey you’re on.

Disclaimer: The information is provided for general information only. PropertyGuru International (Malaysia) Sdn Bhd makes no representations or warranties in relation to the information, including but not limited to any representation or warranty as to the fitness for any particular purpose of the information to the fullest extent permitted by law. While every effort has been made to ensure that the information provided in this article is accurate, reliable, and complete as of the time of writing, the information provided in this article should not be relied upon to make any financial, investment, real estate or legal decisions. Additionally, the information should not substitute advice from a trained professional who can take into account your personal facts and circumstances, and we accept no liability if you use the information to form decisions.