Introduction

Selling a house in Malaysia involves more than just receiving the proceeds from the sale. There are several expenses associated with the process that sellers should be aware of to ensure a successful and financially viable transaction. In this article, we will delve into the five key costs that you need to consider when selling a house in Malaysia.

Property Agent Fees

Engaging the services of a property agent or real estate agent is a common practice when selling a house. These professionals assist with various aspects of the sale, including pricing, advertising, arranging property viewings, and negotiating with potential buyers. In return for their services, property agents charge a commission, typically ranging from 2% to 3% of the selling price, with a maximum cap of 3%. For instance, if your property is sold for RM500,000, the maximum agent commission would amount to RM15,000. Be sure to clarify with your agent whether any additional costs, such as marketing materials and transport, will be incurred.

Check Out Who Pays Property Agent Fees in Malaysia: Buyer Or Seller?

Decide To DIY When Selling A House In Malaysia

Opting to sell your house without a real estate agent can save you a significant amount in commission fees. However, it also means taking on additional responsibilities. If you choose to go the DIY route, it is crucial to accurately price your property. Consider engaging a certified appraiser who can provide a professional valuation, ensuring you set an appropriate selling price. Valuation fees are calculated based on a progressive scale, depending on the property’s value. It is advisable to consult the rates provided by the authorities or seek assistance from property experts.

Renovation and Repair Fees

Investing in home improvement projects before selling can result in achieving a higher sale price. Enhancing your property’s appeal through minor renovations, repairs, or even a fresh coat of paint can attract potential buyers and expedite the selling process. Focus on areas of your home that may require attention, such as cracked tiles, chipped countertops, leaking faucets, wonky doors, or imperfections on walls. Prioritize spending on repairs that are likely to yield the best results in terms of enhancing the overall value of your property.

Legal Fees

Once you secure a buyer, legal fees come into play. Appointing a lawyer becomes essential for drafting the necessary legal documents, including the Letter of Offer and the Sale and Purchase Agreement (SPA). Legal fees are typically calculated as a percentage of the selling price, with rates varying based on predefined brackets. Seeking professional advice and engaging a reliable lawyer will ensure a smooth transaction. Keep in mind that legal fees are an integral part of the overall selling costs, and budgeting for them is crucial.

Real Property Gains Tax (RPGT)

When selling a property in Malaysia, sellers are obligated to pay Real Property Gains Tax (RPGT). This tax, levied by the Inland Revenue (LHDN), applies to any profit earned from the sale of your property, regardless of your citizenship status. However, tax relief is provided if you make no profit or incur a loss from the sale of your property. It is important to understand the RPGT regulations and consult with experts or tax professionals to ensure compliance and make accurate financial plans.

Conclusion

Understanding these five costs associated with selling a house in Malaysia is essential for a successful transaction. Managing these expenses effectively will help you navigate the process and ensure that you achieve your desired goals. Whether it is property agent fees, valuation fees, renovation costs, legal fees, or real property gains taxes, being prepared and well-informed will ultimately contribute to a smooth and satisfactory sale of your property in Malaysia.