First and foremost, for this guide, we are not advocating that you should attempt to sell your HDB resale flat without an agent.
However, we believe in being transparent about the selling process of a HDB resale flat so that you will know what is happening if you do decide to sell your flat as well as ensure that your Property Agent is doing the right thing.
So let’s dive in!
Check If You Have Fulfilled Your HDB Flat’s Minimum Occupancy Period
Before you even begin to sell your HDB flat, you will need to ensure that you have fulfilled the Minimum Occupancy Period (MOP).
The Minimum Occupancy Period (MOP) simply means the period of time that you are required to physically occupy your flat before you can sell it on the open market.
It is calculated from the day you collect the keys to your flat and excludes any period of time when you are not physically occupying the flat.
This means that if you have an approval to rent out your entire flat, the time period of the rental will be EXCLUDED from the Minimum Occupancy Period (MOP)
In general, any period that you are not physically occupying the flat shall be excluded.
For most HDB BTO flats or HDB resale flats bought on the resale market with CPF housing grants, the MOP duration is about five years.
Every person’s situation is unique, therefore to be certain if your HDB flat is eligible for sale, do follow the steps below:
Step 1: Head over to http://www.hdb.gov.sg/myhdbpage and log in with your SingPass
Step 2: Click on the “My Flat” tab
Step 3: Click on “Flat Details”
Step 4: Click on “Minimum Occupation Period (MOP)
Submit Your Intent To Sell
Now if you have fulfilled your MOP and eligible to sell your HDB flat, the next step will be to log into the HDB Resale Portal and register an intent to sell.
Please do not forget this step as you can only grant the OTP to the buyers 7 days after registering an Intent to sell.
After registering your Intent To Sell, you will be provided with information such as:
- Your eligibility to sell your HDB flat.
- The Ethnic Integration Policy/Singapore Permanent Resident (EIP/SPR) Quota for your block.
- Updates on your block’s upgrading status, cost and billing.
- Up to date transacted prices of nearby flats
Do pay special attention to the EIP/SPR quota as this will limit the demographics of any potential buyers you are eligible to sell your flat to.
Please also do check if your HDB flat is undergoing any Upgrading/Estate Renewal Programme.
If there are upgrading works done but un-billed yet, you will need the billing dates to see if either you or the buyer is responsible for the upgrading costs.
Set A Selling Price And Market Your HDB Flat
Now this is the part where things get interesting.
Every seller that we have met would like to sell as high as possible and every buyer that we have spoke to would like to buy as low as possible.
Common sense right?
However, setting an unrealistic price for your HDB flat, would not only mean it might take a longer time to sell but also that some agents may use your high asking price to push other lower-priced units to their buyers.
The best way to find out how much you should price your HDB flat would be to study the past resale transactions in your block and area.
There are many platforms to look at the past resale transactions such as the HDB Map Services or HDB’s Resale Flat Prices portal
Of course, you may have a “Unique Selling Point” but for that it would be best to get a third party opinion (preferable those that are in the real estate industry) to see if your unique selling point would be able to justify your asking price.
Ultimately, it is all about getting the best possible price while ensuring it is realistic enough for potential buyers.
Once you have decided on the price, the next step would be to market your house.
Do not underestimate the effectiveness of having good pictures of your house. This means you will have to know how to declutter and even rearrange certain furnitures to make your HDB flat as appealing as possible.
By having the right photos to help you capture your flat in the best light possible, you will be able to attract buyers to arrange for a viewing.
With the right photos and description, you can then proceed to list your HDB flat on property portals like PropertyGuru, 99.co, Carousell etc.
Do note that some portals like PropertyGuru only accepts listings from licensed property agents that have a subscription.
While there could be free options available, you may have to spend more to boost your listing to reach out to more viewers.
Having the right marketing strategies and posting on the right platforms will go a long way in ensuring your listing is seen by the right buyers.
Negotiate with the potential buyer
Usually, when a buyer has made an offer, the next phase would be the negotiations. Rarely do we have cases whereby the asking price is agreed upon immediately.
Anyone can negotiate. But to be an effective negotiator, it would require skill and experience.
The ultimate goal of the negotiations would be for both sellers and buyers to agree on the price and willing to move forward to close the deal.
Do note that during this phase, any special conditions such as extensions of stay, etc. Should be agreed upon before issuing the Option To Purchase (OTP).
Grant The Option to Purchase (OTP) To The Buyer
Once both you and the buyers have agreed with the price and terms.
You will have to prepare the OTP and grant it to the buyers.
Important things to note:
- You can only grant an OTP seven calendar days after the registration of your intent to sell.
- You can only grant one OTP at any one time.
- The buyers have to pay you an option fee with can be up to a maximum of $1000
- Once the buyer has paid you the option fee, you cannot sell the flat to anyone else for 21 calendar days (inclusive of public holidays and weekends (Sat/Sun) after the Option Date. The Option expiry time is fixed at 4pm.
- HDB may send down a professional valuer to value your property.
- The submission time period for HDB approval application will also have to be agreed upon and stated in the OTP
If the buyer does not exercise the OTP within the option window, you can keep the option fee.
Otherwise, if the buyer decides to exercise the OTP, they will have to pay you the option exercise fee which forms “the deposit” and sign the exercise portion of the OTP.
The option fee and the option exercise fee together (“the deposit”) must not exceed $5000
Please ensure you are familiar with process of issuing the OTP to ensure a smooth transaction.
Engage a Solicitor
After the buyers have exercised, the next step is to engage a solicitor to do the conveyancing for you. They will ensure that the legal documents are in place so that the sale can be completed smoothly.
You can appoint a HDB solicitor or a private solicitor depending on your existing loan type.
If you took a bank loan for your HDB flat, you cannot engage a HDB solicitor and will have to engage a private solicitor.
Submit Resale Application to HDB
Once the OTP has been exercised, the next step is for both you and the buyer to submit the resale application and accompanying documents within the time period as agreed upon and stated in the OTP.
Either you or the buyer can submit your portion of the resale application first. After the first portion is submitted, the second party must submit his portion within 7 calendar days. If this is not done, the application will lapse, and the whole application process will have to be restarted.
Here are some supporting documents that you have to submit:
- Details of Option to Purchase (i.e. OTP Serial No., Option Grant/ Exercise Date, Purchase price, Option Fee/ Option Exercise Fee)
- Buyers’ particulars
- Sellers’ particulars
- Existing loan type (HDB/ Financial Institution (FI))
- Declarations regarding your purchase
- Any additional documents required by HDB that is listed on the HDB resale portal
Once both parties have submitted the resale application, HDB will verify the information provided and notify buyers and sellers of the application status via SMS/email.
You may also check the HDB resale portal for updates on the status of the application.
Once the resale application has been accepted, it will take about eight weeks until the completion of the resale application.
Meanwhile you should also expect and prepare for HDB’s flat inspection to be arranged.
Endorse Resale Documents & Pay Resale Fees Online
After the resale application has been accepted, you will receive a notification to endorse the resale documents.
After endorsing the resale documents, you will also be required to pay the resale fees online.
Here are the resale application administration fee costs:
$40 for 1 or 2-room flats
$80 for 3-room flats and above
This amount can be paid online via credit card (Visa/MasterCard) or by scanning the QR code using any of the supporting mobile payment apps (NETSPay, DBS PayLah!, POSBANK/DBS Digibank, UOB Mighty and OCBC Pay Anyone.)
Not forgetting you will also need to pay the legal fees and the procedure depends on your appointed solicitor.
Wait For Approval of Resale Application From HDB
After both you and the buyer have endorsed the documents, the resale application approval will take about 2 weeks and you will be notified by SMS/email.
Following which, you will be able to view the approval letter on the HDB resale portal.
In addition, HDB will also provide a tentative completion appointment date as well.
Attend The Resale Completion
The final step will be to attend the Resale Completion Appointment at the Toa Payoh HDB Hub.
HDB will notify both you and the buyer via SMS/email about the exact time and date of the Resale Completion Appointment once it has been scheduled.
If you have engaged a private solicitor, your solicitor can attend the Resale Completion Appointment on your behalf to complete the sale.
However, if you have appointed a HDB solicitor, you will need to attend the Resale Completion Appointment in person.
Keep in mind you will have to move out BEFORE the date of completion so that the buyer can take possession of your flat immediately after the completion appointment unless you and the buyers have agreed upon a temporary extension of stay.
Conclusion
This guide is by no means 100% comprehensive and as everyone’s situation is unique, the steps may differ slightly and certain requirements will have to be agreed upon to ensure a smooth transaction.
If you are not confident or in doubt, it will be best to engage a trustworthy Property Agent to help you in the sales of your flat. Otherwise, a small mistake could cost you time and money.
While it may be enticing to save on the agent commission, the time, effort and research put into it may be overwhelming.
Furthermore, good property agents will be able to help you on:
- Financial Calculations/Planning
- Timeline Planning (Especially if you are selling and buying at the same time)
- Market Analysis (They should have the tools to do an in-depth analysis on the nearby recent transactions)
- Negotiations (Sellers may tend to be more emotional if negotiating themselves)
- Home Staging (The art and science of preparing your HDB flat for sale in the real estate marketplace)
- Marketing Strategies
- Some property portals only accept listings from licensed property agents or may only show your listing to real estate agents and not potential buyers who are looking to buy a flat themselves.
- Furthermore, property agents should have co-broke agent contacts or a team which may be able to help push your listings.
- Marketing costs are also usually borne by the agent.
- Paperwork (The selling paperwork may be quite complicated and has to be done right)
- Other value-added services
We hope you have enjoyed this guide on selling your HDB resale flat.
Wondering if it’s the right time to buy, sell, or wait it out?
These decisions can be tough, and there isn’t a one-size-fits-all answer.
But don’t worry, that’s where we come in!
At Let’s Talk Property, we are here to provide clarity to you and guide you step-by-step in your real estate journey!
Whether you’re a first-time buyer or a seasoned investor, we hope to partner with you to create a clear plan that’s tailored to your unique needs and provide objective guidance to help you make the best real estate decision.
So, if you’re looking to buy, sell, or just want to chat about your real estate options, we’re here for you!
With our extensive on-the-ground experience, you can trust us to provide a top-notch real estate experience that’s both informative and stress-free.
Do contact us for a sharing session!
Speak With UsBest Regards,
Let’s Talk Property
Dillon @ 9389 1992
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