Today’s article is contributed by Wiiloaded Consultants’ Managing Director and Non-Executive Chairman, Roger Dai Choon Doi, MBA (Westminster Academy), Hon PhD (University Of Northern Malaya), MBSA, A1REP, FICBA, Member of The International Academy Of Real Estate Consultants (TIAREC).

With home prices rising higher than ever, more and more prospective home buyers are looking at the possibility of getting repossessed homes from banks to save up. While these are great and amazing reasons to buy repossessed homes (one is that they are relatively cheaper than regular homes, another is that the negotiations are generally faster since you are only dealing with the bank that owns it), there are also great reasons not to.

For one, not a few of these repossessed homes are in less than stellar combination. One of the most common reasons is that these homes, usually more expensive than what the previous owners could actually afford, are rented out or shared with tons of people (even more than the ideal capacity of the house) to cut on costs. Wear and tear of the home is increased twofold, maybe even threefold in comparison with a regularly maintained home with an average number of occupants. Another reason is lack in maintenance, due to the exact same reason – cutting on costs. Only logically, if an owner can hardly make regular mortgage payments, you cannot expect him to have extra for repairs and maintenance. Lastly, and most unfortunately, some homeowners get too frustrated upon getting their notice of repossession that they vandalize the home right before moving out.

But if you’re still keen on buying repossessed homes, at least arm yourself with these helpful tips:

• Only go for homes whose damages you are willing to put up with. Banks don’t have the energy, effort, and interest in fixing repossessed homes. In our perspective, they’ve already lost enough money from repossession alone. For these banks/lenders, the ideal buyers of these homes are property investors who buy ‘bad’ houses to restore and resell at a much higher price. You do not have the depth of the pockets of these investors and you’re not selling it so there’s no way your restoration expenses will be returned. Get in touch with a quality real estate agent if you have your doubts. Just because the house is cheap does not mean that it comes inexpensively. Do a check and balance of the current value of the house against the projected costs of restoring the house.
• Do a background check on the previous owners as well as the paperwork of the house. As I’ve earlier mentioned, the bank does not have the energy and interest of making the house look interesting to you as much as a regular homeowner would. You know you’ve done this, if you rented out houses or apartments (I’ve had experienced this when I rented a unit at the Suria Stonor— previous owners weren’t able to clear out previous bank charges, leaving me in trouble.) Especially if you do not have an agent, you have to do the research yourself. There may be other legal obstacles or any other similar problems that may come from the sale of the house, so it would be best to do a thorough research before making anything legal and binding.
• Banks are harder to negotiate with than regular homeowners. That is why there is always a tendency for you to lose the house even in deep negotiation stage if someone comes along with a better offer, you’d lose it in a snap. While this could just as well happen when dealing with regular homeowners, it is more likely to happen in dealing with banks. So when trying to get a repossessed home, and you are certain you want it, get things on paper as soon as possible so you don’t lose it when you’re already deep into it.

Questions? Email me through my secretary Amy “DD” Yip – daipo@wiiloaded.com

Note: this is the standard home seller guide which we provide to our home sellers who engage us to sell their beloved properties. If you need a copy of our extensive WIILOADED GUIDE TO SELLING YOUR HOUSE LIKE A PRO, send a blank email to shaftme@wiiloaded.com

Making your house spotless clean or using the best and most impressive interior accents and design is something that would help your house. But they do not necessarily help your house sell quickly. If you’re in a rush to sell your house, for whatever reason including necessity or just to sell it right before the market turns bad on the sellers’ side, you’ll need more than just aesthetics to make a sale.

See, everyone else can do what you’re doing, design-wise. Chances are, other homes are better than yours.  Or probably you’re getting some stiff competition from high-end residential areas like Taman Puchong Utama or condominium units such as One Menerung, Bangsar. They’d have better amenities, more exquisite-looking spaces, or fresher paint. Malaysians are really demanding right now, and given the property market that has gone from bad to worse, it’s really worth it to go the extra mile.

If fast selling is what you’re after, you’ll need to touch on the buyer’s other senses outside of what they see. Like a good marketer, you’ll need to touch and create a need for them – the need to buy the house urgently.

Outside of that, you’ll need to make the buyer feel like they will benefit from the deal better than you would. Somehow, state your words in a way that would make them feel like you are only making a deal as good as that because you really are in a hurry and not that it’s your ideal price.

Apart from that, here other helpful tips on selling your house faster (compiled from Wiiloaded’s many years of experience in Malaysia real estate!!) –

Create a higher price in mind, and lower it from there.

While a lot of people real estate gurus say it is never advisable to go way beyond your house worth when you’re trying to sell, in some ways it is also beneficial. Say, your house’s current market value is $200,000. Make up a price higher than that, say at $250,000. When someone asks how much your house is sold for, you can say you’re selling it for only $200,000, although its value is about $250,000 because you’re trying to get it sold faster. That’s not lying, that’s marketing.

Sell your house like mall merchandise.

So you’re actually selling your house at $200,000. If you want to make it seem more attractive, go for something that makes it less like $199,999 or $199,995. This may sound ridiculous but trust me, it works up the psyche. It’s not how it looks to you; it’s about how it’s perceived in the brain of your potential buyers.

Tell your agent valuable information about the house – literally, valuable.

Don’t make up stories, go for the facts. The tiles are Italian ceramic? The floors are made of hardwood? Or the hinges on every door is brass? All the door knobs are uniform and are limited edition from a top brand? Is your home energy efficient? Go ahead and talk about it! Your agent will share the exact same information about your house and it will all work to your advantage! This will give your house an edge over the others.

Make it look and sound ready to move in.

This goes beyond staging. To encourage your buyer that your house is ready to move in, use words like ‘you know, this will make a perfect room for your son. The cabinets have all been fixed and repainted and it would easily fit all his things I bet’ or that ‘we’ve cleaned up the attic so you don’t have to worry about dirty attics when you move in’ even before they make a final deal. It instantly makes them feel welcome.

Contact our home selling specialist Margaret Choi Siew Lynn (012-2918881) or come look for us at MAPEX (Booth 222)!

Malaysian Association Of Green Builders (MAGB) Periodical (May issue)

To download your copy of the periodical (free), click here:- http://issuu.com/guerrerohowe/docs/gbd28_issuu 

When it comes to home energy efficiency, the first thing you need to know is that the smallest things matter. From the light bulbs to your large heating and ventilating systems, the simplest effort on saving energy matters a lot.

So here are some easy and largely doable tips in making your homes energy efficient:

• Hire an energy auditor.

The foremost thing that causes energy inefficiency in homes is leaks and cracks as well as damages in your HVAC. No one can do a check for leaks and energy wastage better than an energy auditor. There are, apparently, energy auditors in Malaysia who can help you out– if fact, they help me set up my dream place in becoming the next big thing in green living. 😀 They can help you assess which areas of your home electric systems need to be addressed.

• Make the switch from incandescent to fluorescent.

Incandescent bulbs are sooo yesterday. Fluorescent bulbs are cheaper, more energy efficient, and the white light from these bulbs are much brighter and easier on the eyes. Most eco-friendly properties and buildings use fluorescent to save up on bills and utilities. Read more about this on our previous article about going green.

• Replace old appliances.

Old electronic devices, because of the less advanced technology, carry a less efficient mechanism. Today’s appliance makers are aware of the growing trend of consumers of becoming more environmentally conscious so they start to make appliances that adhere to the Energy Star standards on energy efficiency. Refrigerators, televisions, air conditioners and heaters are the most costly of appliances, energy-wise. You may want to ditch these for Energy Star-rated appliances. You’ll see the cost of your investment come back to you in the form of your much smaller electric bill.

• Work for better insulation.

Leaks on your air ducts are the most common and most notorious causes of huge electric bills. These leaks cause the warm (or cool) air from your heater and air conditioners to escape. When the air escapes, your machines are forced to increase its work and thereby increase its energy consumption, and thus your bill. And all because of your leaks in the air ducts. Repair these leaks and then provide additional insulation so you can maximize the use of your appliances and reduce the tab on your bill. You can also provide additional insulation on your walls and attics! You’re limited only by your own imagination!

• Invest in solar panels.

Solar panels are expensive. But if you can afford it, you had better make that investment. A good real estate agent can refer you to contractors who can install solar panels to make things easier for you. Not only are you independent from extremely high electric bills; you can suffice for your energy consumption needs even when the rest of your area are having blackouts.

ADDENDUM:

Some of the places which might have already been certified:

• Sanctuary Penang
• Idaman Residence (KLCC)
• Sentosa Cove
• Vigil Residences
• Blythe’s Place Virginia