15 Most Important Questions to Ask When Buying a House in Malaysia | Property Investment in Malaysia

Before placing an offer on a property, you want to be completely confident that it’s “the one.”

But with so many alternatives out there, and so much competition, how can you locate your ideal match?

Finding the proper house entails research, so you’ll need to ask the appropriate questions.

That way you know you’re making a competitive offer on a property that you can afford — and one that suits your long-term requirements.

To sift out the duds from the gems, here are 15 key questions to ask before purchasing a property.

1. What’s my overall budget?
2. Is the residence in a flood zone or prone to other natural disasters?
3. Why is the seller leaving?
4. What’s included in the sale?
5. Were there any additions or big renovations?
6. How old is the roof?
7. How old are the appliances and main systems?
8. How long has the home been on the market?
9. How much have properties sold for in the neighbourhood?
10. Are there any health or safety hazards?
11. What’s the history of prior insurance claims?
12. What are the neighbours like?
13. How is the neighbourhood?
14. Are there any difficulties with the house?
15. How much will I pay in closing costs?

1. What’s my overall budget?

Don’t spend your time looking at properties without first knowing how much house you can afford. 

There are extra expenditures or expenses to consider beyond simply the purchase price, such as property taxes, homeowners insurance, ongoing upkeep and any modifications you wish to perform.

My advice is to go to the bank and share your DSR first to evaluate your ability first.

2. Is the residence in a flood zone or prone to other natural disasters?

Be aware. Homes that are situated in a federally designated, high-risk flood zone need flood insurance. 

You can find out if a home is in a high-risk flood zone be referring to the below links:

http://globalfloodmap.org/Malaysia

https://www.floodmap.net/?ct=MY

https://publicinfobanjir.water.gov.my/mengenai-kami/prab/?lang=en

http://infobanjirjps.selangor.gov.my/water-level.html

https://www.mywp.org.my/wp-content/uploads/2013/06/Paper-6-Flood-Hazard-Maps-An-Update.pdf

Likewise, if you’re purchasing a property where earthquakes are regular, you may need to acquire earthquake insurance.

Another tip: Make sure you obtain enough homeowners insurance to cover the expense of entirely reconstructing your house if it’s damaged

If a severe catastrophe happens and you’re underinsured, you might be stuck facing a hefty expense to restore or replace your house.

3. Why is the seller leaving?

Understanding why the seller is relocating — whether it’s due to downsizing, a job move or as a consequence of a big life event — could help you obtain a better price on the property.

A smart buyer’s agent will attempt to find out this information for you and judge how flexible (or not) the seller could be during negotiations.

A motivated seller who needs to move immediately or whose house has been on the market a while is more likely to work with you than someone who isn’t in a hurry to relocate.

4. What’s included in the sale?

Anything that’s deemed a fixture is often included when acquiring a property – think cabinetry, faucets and window blinds.

However, there might be goods that you assume are included but really aren’t.

This depends on your state’s legislation.

The ad description should spell out everything the vendor is not including, but that’s not always the case.

So be sure to inquire in your offer what is (and isn’t) included with the house.

Do you really want that washer and dryer, or that stainless-steel refrigerator?

Confirm if the vendor is prepared to throw these products into the sale.

5. Were there any expansions or big renovations?

In certain circumstances, property records and listing descriptions don’t always line up.

For example, a property could be promoted as having four bedrooms, but one of those rooms may be a non-conforming extension that doesn’t satisfy local construction rules.

Find out what significant repairs or improvements the seller has done while purchasing the house.

It’s also good to get the original manufacturer warranties on any appliances or systems that have been replaced.

Knowing a home’s remodelling history might help you better judge its condition and comprehend the seller’s asking price.

6. How old is the roof?

Let’s face it: Roofs are vital, and pricey.

If a home’s roof is towards the end of its lifetime and you wind up needing to repair it soon after move-in, you’ll be paying out thousands of ringgit.

Ouch. And if the roof has previous damage, the lender may insist that it be fixed in order to accept your loan.

If listing description doesn’t indicate the roof’s age, be sure to find out so you may prevent a pricey home-improvement problem later.

7. How old are the appliances and main systems?

Again, considering the estimated lifetime of important systems and equipment — including the air conditioner, furnace, water heater, washer, dryer and stove — may help you anticipate large maintenance or replacement expenditures.

If these things are already towards the end of their lives, or approaching it, ask the seller to acquire a house warranty, which may assist cover the replacement expenses in some cases.

8. How long has the home been on the market?

The longer a home stays on the market, the more eager the seller will likely be to strike a deal.

This implies you can discover freedom to negotiate the price, contingencies, terms and credits for fixing aged carpet or other visible concerns.

Many times, a house may languish on the market if it was priced too high at the outset, resulting in the necessity for several price reductions.

A listing that displays several price drops and has been lying on the market too long may give buyers the sense that something is wrong with it. And it provides you a perfect chance to negotiate a bargain.

9. How much have properties sold for in the neighbourhood?

Understanding the current local market can help you assess if a seller’s asking price is realistic – or much too high.

Your Realtor may gather the comparable listing data for similar houses that are now on the market, and ones that sold in the recent six months or so, as a foundation for comparison.

“If circumstances justify additional negotiation, try making a lesser offer or even seeking concessions, such asking the seller to pay for certain closing costs,” Mays adds.

10. Are there any health or safety hazards?

Issues like lead paint, radon, mould or other severe concerns may be expensive to fix and might hold up your loan approval.

Ask the vendor to give proof if there have been prior concerns, and find out precisely what was done to fix those problems.

If you anticipate dangerous conditions — or a home inspector offers further testing — you could need to pay more for those specialist services.

11. What’s the history of prior insurance claims?

Try to find out from the seller to discover whether there have been any homeowners insurance claims made in the recent seven years.

This information might provide you insight into what, if any, damage the house has received from a weather event or vandalism that a home inspection doesn’t capture or a seller fails to tell.

12. What are the neighbours like?

Getting the actual vibe of a neighbourhood might be tough before moving there, but this component shouldn’t be disregarded.

Ask the seller what the neighbours are like. Noisy or quiet? Friendly or more prone to keep to themselves? Is it a pet-friendly region, or are there few pets around?

Don’t depend exclusively on the vendor to give these facts, however, or you could not receive the complete picture.

Drive around the area and stop and interact with neighbours.

Neighbors are a wonderful method to acquire information about the neighbourhood that a seller may not want to share.

My practice is to also consult the property agent of the nearby condominium that is on sale, so that I will get an unbias information as well.

13. How is the neighbourhood?

You can always modify a home and repair things you don’t like, but the neighbourhood is there to stay. 

It’s crucial that you enjoy the surrounds you’ll be living in for the next 10, 20 or 30 years!

Your Realtor can help you find out crucial facts, such as neighbourhood amenities, crime statistics, school ratings and how busy traffic is where you’ll be living.

Thankfully, the internet is also a terrific resource where you can study schools, homeowners association regulations (if applicable), neighbourhood parks and other facilities.

And don’t forget to schedule your journey to work - a lengthy one can be a deal breaker.

14. Are there any difficulties with the house?

Sellers are obliged to furnish a disclosure form outlining any known faults.

But what they don’t share — and you don’t know — might lead to serious troubles later. That’s why it’s vital to have a home inspection done by a competent home inspector as soon as a purchase agreement is completed.

The inspection report highlights the home’s general condition and might help you negotiate potential concessions, such as repairs or seller-paid credits, before finalising the sale.

If a house has too many faults and you included an appraisal contingency when you placed an offer on the home, you’ll be allowed to back out of the agreement without penalty and (in most circumstances) receive your earnest deposit refunded.

15. How much will I spend in mortgage?

Do some research on the mortgage or house loan interest rates.

Have a talk to the house loan agent for the respective banks to get the best rates.

You can also get information of those rate in the internet.

Get the amortization rate if possible as well. 

Happy Investing! 😉