A profit you can get when selling your house! It turns out that Malaysian homeowners also need to bear these 6 costs!
post by Dylan
by Dylan
Jan 21, 2019 Posted at 4:19 AM
Those who have no idea about selling a house may think that selling a house is just a matter of “finding the right buyer, signing a contract and collecting money”. However, the truth is not just that.
It turns out that when selling a house, the homeowner needs to bear the following 6 expenses, not just the interest!
Renovation costs
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If you want to sell your house for a higher price, you must maintain it well! If you are also wondering whether it is necessary to invest in renovations, one thing to remember is that houses that are properly repaired and maintained are generally sold faster and at a higher price.
For example, cracks in the kitchen floor tiles or a missing corner on the countertop may put potential customers off. But sellers naturally have their own concerns, because it feels like a bad deal to renovate the kitchen before selling.
Therefore, a more practical method is to Ivory Coast Phone Number List directly carry out some surface modifications. Not only is the cost lower, but it can also allow you to achieve the desired effect. For example, repainting, covering the floor and lamps can achieve low-cost and high-return effects. As for structural problems, such as rusty water pipes, it will be more troublesome to deal with.
At this time, you have to weigh the pros and cons of whether it is more cost-effective to pay for the renovation yourself or to sell the house at a lower price.
Real estate agent commission
Another common cost when selling a home is Bosnia and Herzegovina Phone Number List the real estate agent’s commission! Sellers often need an agent to help them price and market the home, arrange viewings with potential buyers, pay deposits, and negotiate with potential buyers on your behalf.
The commission they earn in this process is often 2-3% of the property price, plus an additional 6% service tax.
For example, if a house is sold for RM500,000, the real estate agent’s commission is calculated like this:
Property Price: RM500,000
Broker commission: RM500,000 x 3% = RM15,000
Commission service tax: RM15,000 x 6% = RM900
Therefore, the seller needs to pay the agent’s commission of RM15,000 + RM900, which is RM15,900!!!
3. Industry assessment services (if any)
Some people will not choose a real estate agent in order to save thousands of ringgit in commission. In this case, the seller must find a real estate valuation company to appraise the house. Real estate valuation also requires payment, but it is much cheaper than hiring a real estate agent.
Taking a house worth RM500,000 as an example, the house valuation fee is calculated like this (the actual price depends on the valuation company):
Property value: RM500,000
Fees for first RM100,000: RM100,000 x 0.25% = RM250
Remaining house price: RM400,000 x 0.2% = RM800
Total valuation fee: RM250 + RM800 = RM1,050
4. Online Advertising
The advancement of online social media has made the way of selling properties more diverse and easier. The famous real estate trading platform – iProperty or Property Guru can give your advertisement a higher exposure rate. Some social media or websites allow you to post real-time advertisements for free, while others require you to pay a certain fee.
For example, you can pay about RM299 to place an ad on the iProperty website for three months. In addition, you can place an ad on a specific property trading website based on specific potential buyers.
5. Legal Fees
After the buyer is sure to buy, the buyer will pay you a non-refundable deposit (some people also call it a deposit), which is 2% of the property price! Next, you must hire a lawyer to draft a letter of offer and a sales agreement (also known as a SPA agreement).
6. Real Property Gains Tax (RPGT)