Sellers, market is good for buying. (think about it when you sell)

A good friend told me about his landed terrace 6 months ago. He asked what’s the price. I referred to brickz.my and told him the price. He said, ‘BUT the MARKET price is higher.’ He proceeded to show me listings by other units which are above his asking price. I told him that when it comes to a property listing advertisement, we can put any price we like. It has NOTHING to do with market price. When it comes to buying, only actual transactions count. No one gives any ‘respect’ to your price, especially now in a slow market.

Yesterday night, he asked me this question, ‘Are the RENs rejecting to sell property nowadays?’ I said of course not. He said after he approached some RENs and told them his selling price, the RENs went silent. No response at all. I asked if he sent the RENs his ‘market price.’ He said, “no, I already refer to MARKET price and lower my price by 10%.’ I repeated, ‘MARKET price is supposed to be transacted price. Not property advertisement listing price.’ He said, “I am sad…’

I told him that when market is slow, it benefits anyone who’s taking advantage of the situation. A seller may feel disadvantaged with the market situation but he could also benefit too! For example, we have to sell the property at a lower price but the truth is, after we sold we could also use the money to buy some other potential units at a lower price too! However, if the goal is to sell and then put the money into Fixed Deposit, then that’s another story altogether.

Of course, if we really could not accept the price, the next option is to rent but landed homes do not provide the best returns when it comes to rental returns. Just ride out the situation by covering some of the monthly mortgage. The ‘storm’ may be here today but it will pass. The question is what would be the options that we want to take today. By the way, dilly-dallying on any decision does not add anything to our bank account. If we sell with profit of RM100,000 and we put this into the FD, at least we get RM4,000 per year. Every month we delay the decision is a few hundred ringgit lost. Yes, it’s a buyer’s market today. A seller can also be a buyer too, right? Cheers.

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written on 28 Feb 2019

next suggested article: Selling your home faster