It could be an upgrade to a bigger home for the family, right-sizing to a cosier flat, or a move to a new neighbourhood. But before buying a new home, those of us who are existing home-owners might be looking at selling our current flats first.
As with the HDB buying process, there's also a specific selling process involved. The good news is that it's pretty straightforward – only involving 5 steps.
#1: Make sure you're eligible to sell your HDB flat
Before anything else, check that you're eligible to go ahead with the selling process.
Basically, if you can answer yes to these two questions, you'd be (more or less) good to go:
- Have you fulfilled the Minimum Occupation Period (MOP) of 5 years?
- Have you checked whom you can sell your flat to under the Ethnic Integration Policy (EIP) and Singapore Permanent Resident (SPR) quota?
#2: Plan your finances
As sellers, you'd be interested to know the sale proceeds you can receive – but in order to get a clearer sense of your financial position after the sales of your home, you'd also have to consider the costs of your next home purchase, and the immediate costs you'd have to bear as a seller.
You can estimate the sale proceeds from your home based on the following:
- The selling price of your flat (it's fine to use a realistic estimate for now, based on current market prices), minus the
- Outstanding Loan amount (if any), and
- the CPF refunds you'd have to make (if you used CPF to finance your flat)
- Costs of selling your flat
Here's a quick look at the calculation process outlined above, demonstrating how to arrive at the cash you can expect to receive from the various loans:
sale proceeds calculator would also come in handy in helping you calculate the estimated sale proceeds. This information will help you to:
- Negotiate a comfortable selling price with buyers later on – knowing the amount of net loss or profit you can expect given the circumstances (market situation, personal timeline for selling your flat, etc.) will put you in a better position to negotiate.
- Provide a realistic budget for your next home, if you're planning on buying a new one.
#3: Complete the Resale Checklist
This is a pretty straightforward step. All you have to do is log in to the
Resale Checklist for Sellers/ Buyers e-Service with your SingPass, and submit the Checklist.
The whole process can be completed in 15 minutes, but do take your time to go through the items one by one as this will give you a clearer idea of the processes and finances involved.
If you're unsure, you can
engage a salesperson to help you out (this normally involves a service fee).
#4 Prepare the Option to Purchase (OTP)
7 days after completing step #3, you may grant an
OTP to a prospective flat buyer. The OTP is more or less the 'contract' of the sales transaction, detailing the purchase price that both you and the buyer have agreed to.
The steps involved in granting an OTP to the buyer include:
Download and print the OTP.
- Negotiate and agree on the purchase price with the buyer.
- Grant the OTP to the buyer, who will pay you an Option Fee
- Buyer exercises the OTP within 21 days to proceed with the purchase. (Buyer pays an Option Exercise Fee)
- Submit the resale application
Once that is completed, you're almost done with the resale process. All that's left are two appointments with HDB.
#5: Don't miss your 2 HDB appointments
2 appointments you'd have to attend together with the buyer in order to finalise the sales of your flat.
During the first appointment, you'll meet with both the HDB and the buyer to discuss administrative matters (including the completion date) and to handle payment of the conveyancing fees.
Your second appointment will take place about 6 to 8 weeks from the date of the first appointment. Known as the resale completion, this basically concludes the selling process.
And that's it!
At the end of the day, the selling process is pretty straightforward – the steps above allow you to plan ahead and without a salesperson if you choose.
The selling process is also useful in helping you plan the purchase of your next home, as you'd have a better idea of your financial position post-sales.
A little planning goes a long way – here's to a smoother journey to your new home!"
This guide provides a quick overview of the steps involved, so that you can plan ahead, and even do without a salesperson if you choose. A little planning goes a long way - here's to a smoother journey to your new home!