Some people said this is unethical to do mark up, as it seems like the owner not selling at optimum price; or is it good if we taking loan at higher value from bank and in fact buy at lower value.
Normally there are reasons why the property has to sell below bank value to the buyer.

As long as the owner agreed to help the buyer to mark up the price, this is “willing seller, willing buyer”

As long as bank approved us with loan with proper documents, this is “willing lender, willing borrower”

Though we able to borrow at bank value and cash out the money, remember, this money is with interest which we need to repay back to bank also via monthly instalment. Thus it is up to individual perception. If we feel not comfortable, just don’t do it. This is just sharing session.

Eg:
1. Motivated buyers who need money for emergency use, need to buy another house soon or family financial problem; and the only way to get the property sold off in short time is to offer at attractive price.
2. Properties that in bad condition, such as bad leaking, bad management or title issue.

Furthermore, we must understand property market games rule: property is free market, willing buyer, willing seller, there is not such thing as the ethical price or reasonable price.

For the two units of properties, which almost the same, it can be transacted at the one RM520k and another one at RM580K.
There is no right or wrong, no ethical or unethical, it is willing seller and willing buyer!
Nevertheless, normally when people only sell property when they know they can make some profit from it.
Unless it is really bad properties.
And we are here still slashing the price so much, this sounds like no good.

One thing that we need to know, not all, but generally owner are smart also.

For example, if they want to sell at RM180k, they will put the asking price as RM200k
Why? they are waiting for us to negotiate the price
And bank value is RM240k

For example, if we are able to negotiate at owner ideal price, which is RM180k
Is it consider a good deal?

BMV = (bank value – purchased price) / bank value
= (RM240k – RM180k) / RM240k
= 25%

For us, it is considering very very good deal

Next, we would like to discuss with owner are they allow to do mark up? First thing that surely will come to owner mind is :”What? mark up to RM240k, that means my property can sell up to RM240k?”

Next session, we will share with you more on how to convince owner to allow mark up the price!