Avoid confusion in pricing of property

LAST week, I visited a property showroom operated by an established developer to view its soon-to-be-launched development project in Kuala Lumpur. I was interested in the units measuring 940 square feet which, the sales agent said, would cost about RM700 per square foot. It was expensive but I decided to explore the Sales and Purchase Agreement (SPA) requirements, loan application process, my eligibility and so on.

To me, a simple calculation would come to RM658,000, but I was surprised when the sales agent said the SPA would be for RM800,000. Upon asking why, a confusing cash-back by percentage formula was disclosed to me. This cash-back is supposed to help me satisfy the downpayment requirement or I may use it for renovation purposes.