Purchasing your own home for the very first time is a huge step and can feel a bit daunting. You may need some help to truly figure out what to look for in a house and which home is perfect for you. If you’re thinking about diving into the secondary market in search of your home, but don’t know what to look for, Myra has got your back! Don’t stress out, and allow me to walk you through the different processes in this post as we talk about what sub-sale homes are, and what are the pros and cons of it!

What are sub-sales homes?

Well first you should bear in mind that primary and secondary markets are two different types of markets. Properties acquired directly from the developer are classified as primary markets, whereas homes purchased from homeowners, real estate companies/agents, or online portals are classified as secondary markets. Sub-sale homes are considered a secondary market, which means you will be purchasing a house previously owned by another homeowner. 

Since this is not a brand new house, the thought process can take a little longer than usual. You're thinking to yourself, "Would I rather buy a brand new home or an existing but used house?" or "which is more worth it?". It can be intimidating, but it's a learning process to make your sub-sale purchase smooth sailing, so don't worry about it! Now, let's jump into the pros and cons of sub-sale properties.

Pros: 

Able to visit the physical property

If we compare sub-sales homes to under-construction homes, sub-sales homes are houses that have already been built (a long time ago), and the benefit of this is that people can physically visit the properties. You’ll be able to get what you see and have a real look at the property and your neighbours!

Check suitability of area

The location is important and something to take into consideration. Check the area to see how mature it is and if it is strategically located for everything. Also, whether the neighbourhood is safe for your children's upbringing!

In-depth inspection of the home!

Observe the size of property, environment, neighbourhood, amenities and facilities. By doing so, you can assess whether this sub-sale home is suitable for you or whether you’ll need to continue your search. You can also inspect the homes in-depth to determine if anything needs to be fixed or renovated. Keep in mind that these homes can range from being a few years old, to an age that has been standing for generations, and are not brand new. So the items such as tiles, plumbing, wiring, etc. all might need a little pick-me-up which definitely will cost you more $$.

You’re able to ask the neighbors about the neighborhood

Talking to the neighbours is a great way to learn about the neighbourhood! This enables you to deduct points from your home's value. You’ll be able to avoid future regrets just by making some friends and asking them questions, whilst also researching the house and the surrounding community.

Able to know every transacted price of a house

Know every transacted price of a house will be at your fingertips! Now this is gold. You’ll be able to check out how much each house in the area that you’re looking at went for, or even see the price of every home sold in Malaysia! So do a comparison and get those negotiating skills out.

Cons : 

You would have to look for a good realtor

Finding a good realtor who will provide you with all the details about the houses you're interested in can be a challenge as there are bad apples out there. But there definitely are good realtors out there who will get you what you’re looking for, regardless of their age! So keep an eye out for them as they’re a goldie. Just remember to check their credentials to make sure they’re legit!

 No discounts available!

Purchasing sub-sale properties have one particular limitation: NO DISCOUNTS! At this moment, the only thing you can do to get a lower price for your home is to negotiate with the seller, which may or may not come through especially if the seller is firm on their asking price. So fingers crossed on this one!

Additional costs set towards repairing the home

Even with the benefit of personally inspecting the house for defects, as described in the pros section, the downside is that there will be additional costs for repairing and renovating the house especially if the house is old. In some circumstances, the home you love may have difficulty fixing specific issues, which can be a setback for your moving in date or bank account. :(

Bear the cost of any additional flaws

Another disadvantage of sub-sale homes is that you will have to pay any additional flaws you uncovered in the house. It might not be a good idea to charge the prior owner for repairs. Though some owners who are very keen to sell their home might do an internal revamp for items like plumbing, wiring, tiles, etc. If you ever stumble upon a seller who redid the home’s skeletons to sell- they’re a gold nugget. <3

If the price of the house is wayyy too cheap

You might wonder why having a house that’s super cheap might be a con… Well, it’s because it is tied to the history of the house and its previous owner. Approach with caution for homes that are priced too cheap. You don’t want a house that comes with issues like illegal money lenders or crimes.

So yes, these are the pros and cons! Remember, when purchasing a home from the secondary market, there are several factors to consider including your preferences, house requirements, budget and location. As previously said, the pros and cons of sub-sales homes are debatable. Although purchasing a brand new home has many advantages, sub-sales dwellings have their own qualities. A bonus is that if you like a house with a history or vintage design, these types of places are perfect for you! It all depends on you and your family’s preferences! Hope you have a better grasp of the pros and cons of sub-sales homes and that it could support your decisions!