Selling of a property

We are not rich people that own a lot of properties. But somehow in our life time we might buy or purchase 1 or 2 properties for our staying and not for price speculation, even though property by itself might appreciate in value. It is just lucky that if you happen to purchase the right property at a prime location, that area started to develop at a later stage then the property would have appreciate many folds in value. For common people like us, we do not have the extra money to invest in property. Most of the time we ended up renting out our properties because we move our families due to work or some other reasons.

Disposing off a property sometimes could be a better solution if we do not intend to stay in a particular location long term. Renting out is really a hassle as one has to collect the rental every month and some tenants are bad paymasters or some just want to rent for a short period of time that you have to look for new tenant again every now and then. If you are unfortunate your rented out property could be so run down, vandalized or abused so much that the owner eventually has to spend all his/her rental money to touch-up or renovate the house again to livable condition.

Since selling of a house is not a frequent thing that we do, we normally lack the experience in handling such transaction. It would be easier if we pay any property agency 1-2% commission for them to help in selling the properties. If not, you have to be there every time someone wanted to take a look at the house or even to the extent of troubling your friends or relatives to do the job for you. By all means, it is better to pay the commission than to owe someone a favor to help you. In the process of helping, your relationship might just turn sour!

Normally when the Sale and Purchase agreement (S&P)is signed off, 10% of the selling price would be deposited to the seller' s account. Many times the purchaser would want to request for the house key in advance for moving in or to do some early renovation work. Come to think of it,  it is understandable and not a big issue to give the house key to the buyer but the implication could be more if the balance of the purchase price is not forthcoming due to some complication. The S&P would normally specify that delivery of vacant possession will only take place after full settlement of the balance payment. I think there is a reason for stating this! It is because normally payment would not make directly to the seller if you opt to be unrepresented by your own solicitor. Payment would normally go to the purchaser's solicitor first. Should the key to the property is given in advance to the purchaser, if there is any complication to the loan release by the financing bank or delay of payment by the purchaser's solicitor to the seller, then the seller would be the only one left high and low chasing the lawyer or the bank for the balance of the purchase price payment.  If the purchaser does not has the key then there is the urgency for him/her to chase for the soonest release of payment, either to the bank or from the lawyer to the seller if he wanted to move in to the property. That sounds logical right?

We grumble when we sell a house at a price slightly higher than our original purchase value. No one complains about the selling of expensive vehicles which depreciated the major portion of its value just over a period of 5 years! So it is an advice to young people that it is still better and wise to priortize the purchase of properties than buying vehicles!