you can now bargain for more
The day I joined Real Estate is back to 2013, for the first case with co-Agency with Mr. “Y”, where the property market is hiking up and hot.
A very good luck to me for The First Week of work, after Mr. Y’s client viewed the 1.4mil a Terrace House in Jelutong area. Buyer counter offered for 1.3mil
Guess what happen? There is no chance to talk when owner heard the offer, no discussion at all.
It is “you want, you take it, don’t want? Just leave it.”
So… After couple weeks follow up by Mr. Y from the buyer side, there is no range of negotiation, I had been asked many times by Mr. Y until I don’t know how to answer.
But, silent might be the best answer too. So buyer has increase their offer to 1.35mil. Yup, I got my first sales with RM 1.36mil.
When market is hot, it’s very normal for owner to bang off your call if we asked for discount, but for now when market is slow we actually can bargain for more and owner is most likely be nice with you.
It is now only from owner ya, even from some developer, they also giving out better discount especially after MCO recently.
attractive mortgage rates
Attractive mortgage rates really make a big difference that encourage home seeker to purchase their home recently. When mortgage rates are low, borrowers will have lower monthly instalment and this is why they could afford to purchase now.
For example, my customer who failed to purchase Eco Bloom with me last year vs this year, it’s become ok to purchase this year.
In 2019 he disqualified for loan amount RM 350,000 by 35 years at 3.9% mortgage rate and the instalment is RM 1,528 per month.
In 2020 he then qualified for loan amount RM 350,000 by 35 years at 3.2% mortgage rate and the instalment is RM 1,386 per month.
Decreased mortgage rates give property buyers more purchasing power, as a result, the demand will increased and this is what happening now.
Especially to me who are in the selling of Eco Bloom, now with affordability of buying a flat actually could own a dream home project from EcoWorld | Creating Tomorrow and Beyond.
Choices are more, with the same budget, now you could get a lot of more choices. From new launches, newly completed project, secondary market or even auction properties. Now there is it is.
One of the project I am selling now, it’s even cheaper than last time I bought on last November in 2019. A luxury English Theme Condo located @ Simpang Ampat start from RM 330,000 now. The monthly instalment from only RM 12xx
Yeah, demand is slow now, and you could have a lot more choices with your existing budget. Example for RM 450,00 to buy Idaman Iris, now is easily have more than 10 choices for you to get a 2 car park unit.
But, we need to understand too, where the price came down to RM 380,000
It is only one reason simply because not all the owners having issue with their holding power.
When the price selling at “demand price” with further encouragement by government latest policy, let’s understand little bit more about Market Activity Movements 2019
bank also wants to survive
In fact, banks would love to lend and this is how they earn profits.
However, they are more willing to provide loans to borrowers who seem to be able to pay.
Now, it is more difficult to obtain good customers, and some banks are certainly doing more work to attract customers.
In other hand, rejection rate is actually low instead, bank is actually approved for lower margin if customer commitment is high. It is APPROVED
But to customer who got lower margin loan and unable to take out the additional cash of 10% to 20% would usually seek for rejection letter. It is REJECTED.
developers giving more for less
No habit of saving? Don’t be afraid, houses can be a great tool for us to develop savings habits. In long term, it is also a great tools to hedge against inflation.
higher cash rebate
Headache for renovation cost? Now the package included luxury fitted cash rebate for us to have our dream home easier. Or Utilise it wisely to even better one.
all included package
Worry about expensive legal fee? Now we can get all fee included and just RM 1,000 booking fee or even there is package start with RM 100 to own a house.