MIEA Shares Tips on How Not to Fall Prey When Looking for Great Property Deals
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The post Movement Control Order (MCO) period, is expected to see an increase in online and offline property listings. Many Malaysians would also be on the lookout to buy properties which are expected to offer great deals and bargains.
The Malaysian Institute of Estate Agents (MIEA) has shared its insights on the many opportunities involving property deals that could come up post-MCO for Malaysians but there is also a need to be cautious and not fall victim to overpromising and dubious deals.
Through the public awareness campaign #MYREALAGENTS, MIEA hosted its third episode of MIEA Public Advisory to remind the public to rely on registered estate agents and negotiators to conduct their property transactions and to share insights on how they could identify these property pitfalls during and after the MCO period.
The third episode webinar took place on April 11, 2020 where CEO of MIEA, Mr. K. Soma Sundram and Founder and Editor, KopiandProperty.com, Charles Tan shared their insights and steps on how to “Don’t fall prey when looking for great property deals”. The session was moderated by Imran Clyde, Director of Nextdor Property Communications Sdn Bhd.
Soma stressed that the public should not rush into purchasing a property and to take time to understand the market and do some research on the property as they need to be prudent and be “an informed person” beforehand when investing in a property, either for own use or for investment. He said that it’s also important that there is cooperation and trust between the agent, seller and buyer to make sure all parties work together to smoothen their real estate investment journey.
Soma highlighted that MIEA has identified thirteen ways where buyers or sellers can fall prey to an illegal broker. These include cheating, absconding, misrepresentation, misleading, profiteering, withholding facts, representing seller & landlord without legal authorization, undercutting selling price, not knowing the legal process, having a personal conflict of interest, not adhering to MIEA Code of Ethics, collecting fees from both parties and collecting more than the allowed fees.
He also reminded the public to avoid “Yellow Board Agents” which are expected to increase after the MCO period. The yellow signs are usually placed by illegal brokers on lamp posts and trees.
“You should demand proper service as you are paying 3% fee for the service and follow through or keep abreast of what’s happening” he added.
Charles Tan added when homebuyers are choosing the right registered estate agent or negotiator, they should ensure that their agents are knowledgeable about the area and understand the real estate market, upholding the integrity and is able to provide quality advice about the investment.
Soma also urged sellers to appoint an agent on an ‘Exclusive Basis’ i.e., appointing one agency firm as compared to many agents from different firms. The appointed agent will then take responsibility and market the properties in a more effective way. Appointing many agents will result in competition and in return undercutting the listing price which will push the property price lower than the market rate. He also highlighted that the principal of a real estate firm will be responsible for the action of its negotiators.
Adding on, Charles said that the public should always check the Proclamation of Sales (POS) and Conditions of Sales (COS) before purchasing an auction property to understand all the terms and conditions.
Lastly, Soma reminds the public to always conduct due diligence when they come across great property deals and do not fall victim to unscrupulous individuals that offer property deals that are ‘too good to be true’.
All webinars will be shared on #MYREALAGENTS social media channels and website. The social media platform and website will also contain content on the legal aspects of buying, selling or renting property and also tips, checklists and what to look for when engaging a registered estate agent or negotiator. The public can visit www.myrealagents.com or follow their page on Facebook and Instagram.