Are property prices really dropping ?

Well the speculation in the market is that Malaysia property prices are dropping.People are expecting to get fantastic deals and way below market value. Those with cash are on the hunt and patiently waiting, those with properties are holding on as much as they can until the prices increase.
So who will win this negotiation war ?

I recently had a buyer that was upset with a seller that was selling his property above the valuation price by 2.5%. Buyer stated that it is not a fair negotiation start if your asking price is above valuation. Seller says I love my home and I believe it is worth that value as I have put in much money, care and effort. Neither would budge , buyer likes the home but does not value it as much and on the other hand seller wants to sell but is not desperate and will be able to hold on for as long as he wants to as the house had been fully paid anyway. In this situation the price is not moving either way, not up and not down :). Only options for the buyer is to walk away and find another deal, option for seller is to wait and find another buyer.

According to an article in property guru, it is predicted that property prices will decline. However there was another article that says that property prices will improve. Well I guess we just need to wait and see.

My advise to sellers is that you need to assess your financial situation and be comfortable when you select a price. You are the owner of the property and you need not be pressured by agents or buyers. If you are serious about selling quick then sell the property at the market value, if you need to sell it urgent then below market value. If you just want to gain maximum profits then you need to ensure your property can command a high value and have unique selling propositions.

My advise to buyers is that you need to be honest with your budget, not only how much you target to buy the property at but in more details such as how much cash do you have in hand for this transaction inclusive renovation etc.
You also need to know exactly what you want. If you have certain quirks such as hate the number 4 or does not like to be at a T junction, need corner unit for gardening or just peace and quiet. Don’t let your agent guess your needs, you engaged an agent to be your consultant. If your agent is not interested in your needs then I suggest that you find a new one.

All in all whether prices go up or down, if you watch it with a microscope instead of the whole market then its really a case to case basis.

Happy buying and selling !

Inspirealblog by Audrey Lim

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