BI NEGOTIATION

“Buy a house, cash or loan?”

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Real estate agent: Hi, good evening. Welcome to Propwall Real Estate Agent company.
Please have a seat and what can I do for you?
Buyer & lawyer: Hi, good evening. Thank you.
Buyer: I want to buy a house for my son and my daughter in law as their wedding gift from
me. I plan to buy a house somehow located at Puchong since they work in that area. I want
the house that are close to the accommodations such as school, market, bank, public
transports and etc). As for your guide, I have no restriction and limitation regarding to the
price. Whatever the price is, if it fulfil my criteria that I have mentioned earlier. So, it on the
deal and I will pay the price.
Real estate agent: Thank you madam, as you have come to the right place. Recently, the most
famous house of dream that fit your criteria is on sale at Taman Meranti Jaya, Puchong. It is a
3 storey bungalow with a built up area of 4,603 sq,ft. Fortunately, there is still 10 units left
out of 19. The special features of this house is, it has 7 bedrooms, 6 bathrooms, spacious
living and dining area, a 24 hours guarded security, a solar heater system, an autogate system,
alarm system and a 3 phase power supply. As for the accommodations, Pusat Bandar Puchong
Lrt is located at 0.3 km from the house, many kolej such as Kolej Teknologi Antarabangsa
Cybernetics just on the place and SMK Pusat Bandar Puchong located only at 0.62 km from
the house. Furthermore, near the house, there is Klinik Desa Batu 13 ½ and if you think you want a
private health care hospital, there is KPMC Puchong Specialist Centre which is only 0.73 km from the
house. Furthermore, if you want to go for shopping, there is 99-speed mart around the area and
there is also Tesco Kuala Selangor at 0.43 km from that area. With all the criteria that you want and a
house with spacious and elegant feel, the price that was offered for this house is starting from
Rm2,750,000. How about it?

Lawyer: Argue about the house (price, type of land…)…

Real estate agent: Ok, for starter, the house is a freehold land tenure which means outright
ownership of the property and land on which it stands. The owner of the land has no time
limit to his period of ownership. So, madam, you can rest assure that the land is a residential
land and you have total ownership over it. As for the price, we offer you Rm2, 750,000 with a
free SPA legal fees and SPA Stamp Duty on MOT. You can ask your lawyer for details about it.

Buyer: In my opinion, this house is too small for my son and his family later. It will be too
suffocated later if they had the children. Is there any house so much alike with this house but
located at the corner. I think the corner house has an extra space which is suitable for my
future grandchildren to play and had the outdoor activities.
Real estate agent: Let me bring you to the last house around the corner. As you can see, this
house have a spacious yard for your grandchildren to play around. Still, all the specifications
inside is still the same as before. However, the price for this house is a lot higher compared to
before as the have a spacious space for children playground. The total price for this house
with the free promotions we gave before is at RM 3,503,000. If you take a loan with a 4.15%
interest with a 90% loan margin for 20 years, the total cash you required is RM 531, 021 with
a monthly repayment of RM19,354.
Buyer: What the benefit that I will get if I purchase the house by loan? I think buy with cash
are more beneficial for me as I do not have to pay the loan interest rate which is 4.15% right?
And this will be lost for my side. I also will not have to burden myself to remember the due
date to pay the loan to the bank every single month.
Real estate agent: There is of course a benefit, first, the process is a lot faster compared with
you buying with cash because of the source of money issues by the government Next, as you
buy the house in cash, all the promotions is considered invalid including the 7% discount for
bumiputera. The house price will increase to RM4million. It is a very high price.
Buyer: Sorry, I still do not get it.
Real estate agent: Let me call the banker. Please wait for a moment.
Banker: make appearance, introduce herself (give name card). Explain the cash & loan ….
Lawyer: Argue the statement. Then give opinion to buyer…
Buyer: Okay, I agree with the deal.
Real estate agent: Then, I will proceed with the entire document and will be contacting our
lawyer.
Banker: Ask the lawyer and buyer to come to the bank for loan process….ask to bring
whatever documents needed later..
Lawyer: Say something to the banker….
Real estate agent & banker: Thank you for buying with us. Please feel free to contact us for
any inquire (give name card of office). Give paper bag of other pamphlet and free gift.
Lawyer & Buyer: Noted. Sure!
(Shakes hand and blah)