The Difference Between Buying a Property From a Developer Versus an Agent
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Thinking of buying a property but not sure if you should engage a property developer or a property agent? We have done the homework for you, read below to check it out.
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.
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
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.
This article was originally published by PropertyGuru