In Malaysia, you can typically buy from either a property developer or a property agent, depending on the property and your personal preference.
Known as the primary market, the sale of new properties, which includes new undergoing-construction and completed properties is managed by the property developer.
The secondary market, on the other hand, consists of sub-sale properties with pre-existing owners that are usually handled by property agents.
Perks Of Buying From A Property Developer
1) Easy on the wallet
If you’re scouting new developments, you know you will be in for a brand-new piece of property (read: low maintenance for the next few years).
On top of that, you can expect having to do little to no renovations that are typically required of older properties.
This also usually means the cheapest entry point for the said property as the value of properties seldom fall below their initial price tag.
2) Discounts galore
In recent times, to attract even more buyers, property developers have been dishing out discounts and waivers on a slew of fees including stamp duty, loan agreements and legal costs.
Some even throw in freebies such as air conditioning units or built-in cabinets to sweeten the deal.
3) Peace of mind
Another advantage of dealing directly with reputable property developers is the 24-month guarantee against any defect under the Housing Development Act (HDA) that will give you some peace of mind after you’re handed the keys.
This acts as a ‘warranty’ that allows you to have the developer rectify issues, especially major ones including pipe leakages and cracks in the walls and ceiling during the 2-year period.
Perks Of Buying From A Property Agent
1) Variety of choices
Property agents bring a lot of options to the table. They can offer you choices in locations you never even considered before and have the ability to assist you in shortlisting your options based on your needs.
This can help you hone in on your neighbourhood of choice to secure your ideal property because they have the field expertise to know which properties boast the features you require.
2) Detail-oriented
When it comes to the nitty-gritty like negotiating fees, amending the contract, requesting repairs, explaining the complexity of procedures and detailing estimated timelines, a good property agent will assist both the seller and buyer in ensuring a smooth and seamless transaction.
After all, it is in their interest to help both parties walk away happy while securing a commission and perhaps even a referral or two for a job well done.
3) Seamless closing
Closing a deal can be a delicate affair with some pitfalls. Experienced property agents know what to look out for and can advise you accordingly.
They can assist by going over crucial details like the title, for instance, to ensure there are no last-minute surprises to contend with.
Things To Look Into When Buying From A Developer Or An Agent
1) Reputation
Reputation is key when choosing either a developer or an agent. You want to check their track record to see if they tick all the boxes and are indeed who they claim to be.
One sure-fire way is to check out the list of blacklisted developers collated by the Ministry of Housing and Local Government (KPKT).
You can also seek recommendations and reviews from a few different friends and family who have had first-hand experience dealing with a particular developer or agent.
2) Background Checks
Searching online to check on other developments by a property developer you are eyeing can give you an indication of the type of company you will potentially be dealing with.
From estimated completion timelines to the quality of workmanship, a reputable developer means you can better manage your expectations in the long run.
Similarly, with agents, you want to conduct a quick search online to verify their agency’s reputation and the areas they specialise in to understand their capabilities.
3) Certification
For properties undergoing construction, you want to check for the Advertising Permit and Developer’s License (APDL), a developer license that ensures they’re complying with rules around fair and legal practices.
Property agents, on the other hand, need to be registered with the Board of Valuers, Appraisers, Estate Agents and Property Managers (BOVAEP).
For real estate agents, they will be able to produce their blue identification tag upon request. Real estate negotiators, meanwhile, carry a red ID tag.
Over the years, you may have heard unpleasant stories from those around you, on social media or through the news about people encountering unscrupulous developers or agents.
It can range from promising up-and-coming projects being abandoned or severely delayed to scammers posing as property agents.
To avoid being a victim, it is important to know your rights, always remember to do your due diligence, or consult trustworthy friends or family members to help you on your journey towards buying your property.
So, whether you decide to buy a new property from a developer or you go the route of getting a sub-sale home from an agent, be sure to ask the right questions and carefully consider your options before signing on the dotted line.
To ensure a smooth home-buying journey, check out our guides on "Choosing The Right Developer And How To Deal With Them" and "5 Things You Should Know Before Hiring A Property Agent In Malaysia".
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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.