Hi,

I am currently looking into buying a house. I have met with the agent that is selling the house and has given me the final offer price...which is from what I know...below market value. Based on 2 other houses that is within the vicinity.

For instance, the other 2 houses is up for sale at RM 500-530K. And the current house that I am looking at is RM470K. I think it's a good deal. But how would we check the proper or correct market value of the house? the houses are all of the same design and are just one or 2 streets away.

Can I call off the deal if i decided not to get the house even we have come to an agreement and the 2% deposit is paid?

thanks

Base on the previous sale price, not the one currently on sale.
Check with your agent.

yup...the value is based on the previous sale value...

anyway i got fens in henry butcher..I dont mind helping out...pm me

based on the previous sale value? the house as i know was sold at RM400k 5years back. It was direct from developer then. And since then the area has boomed. thus increasing the overall value of the whole township.

Same answer as my previous post.
Ask your agent to give you the price of the houses being sold in that area within a year.

But this is the problem isn't it, that you have to go through agents? And of course each agency will have its own records, the quality of which will vary from area to area depending on the volume of their transactions in that area. Is there any national registry of property sales that the average citizen can search through? I know this kind of database is available to Americans. It would be wonderful if Malaysians could do this.

There is actually an evaluator company. Bank will ask for their service for valuation. You can ask them to value a property too, but they will charge u for their service.

When bank say "i will check the value first", means they will check it with their valuer. Before they release the money their valuer might have to submit a valuation report etc etc. Bank normally pays for this.

But like i said above, u can use their service if you pay. For eg, GS Valuer's office is in SS15 subang. For unformal service, just ask a bank/call up the valuer.

There won't be 100 agents in your area. They are just a call away.
Or go the harder way, see post 7.

1. market value = transacted value (ever heard of the term "marked to market"?)

2. the way you describe value.. gave me an indication that you're a good "waterfish" target. you can only determine(with a degree of calculated risk) good value with a series of due-dilligence. have you done any besides the price factor alone?

3. having a proper appraised house is not your primary concern, but having an approval of the loan amount is. have you heard of the term "pre-approve loan"? the process of having it pre-approved acts also as a sanity check... if you're suitable to swallow such debt and if the valuation of the said property is sound.

4. walking away from a deal with an agreement and not to buy is not free-lunch, it's not binding unless you're foolish enough to sign some legally binding papers without exit clause!! what you'll loose is the 2%.

...treat that as a learning fee if you have to walk away (for that's one good education you'll get, albeit the pricey fee)

Most people would not know what an exit clause is.
It saves me thousands in my first deal.

Location.. where is the location?

ask the bank..

Best answer

Caveat, properties can be an emotional thing for some, and you can't really put a value on it. As the cliche goes, price is what you pay, value is what you get.

This post has been edited by meejawa: Apr 28 2009, 09:23 AM

Call a banker, tell them u buying this house. Wanna know how much is the market value and the loan that you are eligible to obtain. Ask them to call u back within 5 minutes

Kautim .... 1 phone call and 5 minutes waiting time .. u get your value

I would not trust the market prices that the agent quote...especially if the agent has a vested interest to close the deal. Remember the agent is representing the seller (not you) and is not looking out for your best interest.

You can get market prices from a valuer. If you are getting a bank loan, you'll need to engage the bank's panel valuer anyway. Call up the valuer. Most valuers will give you an indicative price if they are familiar with the area before they even do the site visit for the valuation

This post has been edited by gilabola: Apr 29 2009, 06:10 AM

lwb,

I second that opinion. The TS had not done enough homework to make this purchase.

Dreamer

He learning, should point him to the right direction.

Just my opinion.

There are good agents as well as bad one.
To find a agent that represent you, ask the agent "do you represent buyer?".

Asking more than 1 agent would give a more accurate price.

Hmmm...thanks for all the input. After my last post, i have engaged a lawyer in this matter. They told me to hand them the cheque and they will deal with the seller's lawyer. Before I handed over the deposit to the seller. Which was a good thing.

I have been to about 10 banks to inquire about housing loans. And on the spot they called the evaluators to get the market value of the house i intend to buy. Apparently, the house around that area only values up to 430-450 max. Does this means that the agents for all the houses around the area are pushing the price up? After finding this out, i called my lawyer to withhold the transfer of the deposit.

Now i am quite stuck in a dilemma, we love the house but since getting to know the market value. It sort of held me back now. There are 2 banks that are willing to give me the applied loan based on the selling price.

Any opinions on this?
thanks a bunch

Negotiate the price down to the market price.
If you really do know what is the price.

At most you lose your earnest money if you don't want.

This post has been edited by jasonhanjk: Apr 30 2009, 10:43 AM