Viewers were sending Sean properties with big advertised discounts and asking which to buy. He noticed most came through the same few channels.
Where can buyers find discounted property, and how genuine are the discounts?
“you are the buyer you have the power”
Discounts follow a project's struggle to sell: developer promotions, then agents, then group-buying clubs, and finally auctions. Many early discounts are applied after a price rise, while auctions often offer the most genuine value but need the most knowledge. First-time buyers are safest buying direct from a developer.
Why
Developer discounts may follow a price rise
A unit priced at RM500,000 may be revised to RM600,000 and then offered at 10% off, which is close to where it started.
Agents step in when sales stall
Developers hand slow projects to agents who advertise aggressively online. Commissions are usually 2 to 3%, sometimes up to 7%; the harder a project is to sell, the higher it goes.
Group buys fill a building with investors
Gurus and clubs book blocks of units for members, with cash back of 15% up to 40% and an entry fee of a few thousand ringgit. A building full of investors and short stays can be unsettling for families who live there.
Auctions show the real value
When investors can't keep up their instalments, units go to auction at around 20 to 30% below market value, with the earlier gimmicks stripped out.
What to do
- Compare a discounted price with the price before any revision.
- Get any agent's promises confirmed in writing in the agreement.
- Before joining a club, check the entry fee and who else is buying in the block.
- Learn the rules and process before bidding at auction.
- If you're a first-time buyer, buy from an established developer.
Editorial Note: Summarised from Sean Tan's full episode. The quoted answer is in his own words; the rest is our paraphrase. Figures reflect the recording date, so check current rates and rules before acting on them.
4 PLACES TO BUY DISCOUNTED PRICE PROPERTY
Sources & Verification Data
Summarised from Sean's English captions for this June 2019 video. The quoted line is verbatim; everything else is paraphrased.
