If you are a buyer or a seller of a home in the secondary market, surely you would want to know this million-dollar question – how much should I be paying or selling this property for?
Hence, one would usually engage a valuer, who is a professional registered with the Board of Valuers, Appraisers and Estate Agents & Property Managers (BOVAEP) Malaysia under the Seventh Schedule of the Valuers, Appraisers and Estate Agent Rules 1986. property/home valuation to determine the current market value or selling price of your property.
In Malaysia, a common misconception is that you can obtain a 90% financing based on the property selling price or the price agreed between you and the seller. However, it is the banks who will decide how much is the true value of a home based on the report obtained from a registered valuer.
Here is how a valuer charges the valuation fees in Malaysia.
For first RM100,000.00 =0.25%
Next residue up to RM2 million = 0.2%
Next residue up to RM7 million = 0.167%
Next residue up to RM15 million = 0.125%
Next residue up to RM50 million = 0.10%
Next residue up to RM200 million = 0.067%
Next residue up to RM500 million = 0.05%
Next residue more than RM500 million = 0.04%
Hence, you would want to know, what are the factors which decide how much is your property worth? Valuers benchmark the value against these four factors.
The mantra location, location and location still ring true. The value of your property is generally higher the nearer you are to the city centre. However, do take note that in circumstances such as when it is near to cemetery, power stations or a waste disposal area – that could be detrimental to the property’s value. If you are a homebuyer, try to avoid homes that face a T-junction as people believe that vehicles might collide with the gates of the said properties.
2. Quality of construction
Always check the reputation of the developer as there are some who may cut corners by offering subpar construction materials which leads to latent defects and subsequently, a lot of repair costs later. Houses built many decades ago such as in areas like Bangsar and TTDI fetch a premium as their quality of built is incomparable as opposed to newer developments built today.
3. Maintenance and renovations
Older properties will need upgrading works, from plumbing to roofing and waterproofing. If you fail to maintain your property well, this can potentially cause a detrimental effect to the value of your property. Amongst the renovation works which a valuer will consider include the change of flooring, installation of alarm systems and built-in cabinets and wardrobes.
4. Accessibility and amenities
A bonus point would be if your property is located near infrastructure such as a newly opened major highway and public transports such as LRT and MRT. Not only that – schools, hospitals, banks, shopping malls, parks and even recreational facilities such as golf clubs and parks add substantial value to a property as well.
[Image source: Sale photo created by xb100]
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