Contents
- The Step-By-Step Guide To Sell Your Condo in Singapore
- 1. Check if you are still within the lock-in period
- 2. Research The Property Market
- 3. Declutter and Home Staging
- 4. Plan Your Timeline For Concurrent Buying and Selling Property
- 5. Engage A Property Agent or Do-It-Yourself (DIY)
- 6. Finalise The Marketing Plan
- 7. List Your Property On As Many Property Portals And Media Platforms As Possible
- 8. Flexibility With Viewings
- 9. Negotiate The Offers
- 10. Issue The Option To Purchase (OTP)
- 11. Sale & Purchase Agreement And Property Valuation
- 12. Pay Seller’s Stamp Duty (SSD)
- 13. Complete The Transaction
- Frequently Asked Questions On Selling Condo
- i. Can I Sell My Condo Without A Property Agent?
- ii. When Is The Best Time Of The Year To Sell My Condo?
- iii. How Do I Sell My Condo Fast?
- iv. Can I Still Buy HDB After Selling My Condo?
- Thinking of Selling Your Property?
The Step-By-Step Guide To Sell Your Condo in Singapore
While the majority of Singapore residents (c. 78%) stay in HDB flats, owning or upgrading to a private property such as a condominium is still an aspiration for many people.
Given the increasing prices, many still consider private properties as assets that will appreciate in value through the years.
There are fewer restrictions when it comes to selling your condo as compared to selling a HDB. More importantly, you have to ensure that you have mapped out your timeline and calculate your sales proceeds before you move forward with the sale process.
1. Check if you are still within the lock-in period
You should only sell your property three years after signing the sales and purchase agreement (S&P) to avoid paying Seller’s Stamp Duty (SSD). Furthermore, you should check if you are still within the lock-in period for your mortgage loan to avoid getting penalised.
2. Research The Property Market
Before you embark on selling your property, you should look up on the transacted prices of similar units in your condo development. This is to ensure that you keep your asking price reasonable to attract serious buyers while at the same time not selling your property at below market value.
The URA website provides information on recent caveated transactions and you will be able to calculate your cash proceeds after deduction of seller’s stamp duty, legal fee, property agent fee etc.
3. Declutter and Home Staging
First impression does count as buyers are likely to remember your house over others that made little to no impression at all. Declutter the house, dispose unwanted items and keep the house clean and organised. Consider painting the walls in a uniform white colour, making good on areas such as lighting (ie: replace light bulbs) and rectify any areas that require repairs.
4. Plan Your Timeline For Concurrent Buying and Selling Property
This is tricky as the timeline involves 3 parties, yourself, the buyer for your property and the seller for your next property. It is essential to communicate all your requirements upfront to facilitate a smooth transaction. You do not want to find yourself in a situation where you do not have a place to stay during the transition to your new place.
For the sale process, you can take into consideration an approximately three months (the time varies depending on the marketing strategy) plus another eight to twelve weeks (this is to be agreed between the buyer and seller) to completion from the date of exercise of the option to purchase (OTP).
5. Engage A Property Agent or Do-It-Yourself (DIY)
If you prefer to do it yourself, you will need to ensure that you have done your homework right so that you will be ready to accept an offer when the right one comes!
It is important to engage a reliable property agent that you feel comfortable working with as the entire sale process can take up to 6 months or more to complete. Meet up with the property agent for a consultation and he should have the necessary experience and knowledge to assist you from the start to finish.
6. Finalise The Marketing Plan
Obtaining a third party valuation will be helpful to support your asking price since buyers have to rely on it to obtain mortgage loans.
Next is to do some research to find out the comparable units in your condominium and the neighbouring ones in order to position your property well. This will help you to address any potential questions or concerns from potential buyers.
7. List Your Property On As Many Property Portals And Media Platforms As Possible
This could include online listings, professional photography, virtual tours, open houses, and targeted advertising. Your property should be listed on property portals and media platforms to capture a wide audience.
8. Flexibility With Viewings
Be accommodating with viewing requests and allow for open houses. The more accessible your property is for viewings, the higher the chance of attracting interested buyers. During the viewings, show buyers the positive aspects of your property, provide floor plans and be prepared to answer any questions the buyers may have.
9. Negotiate The Offers
Be prepared to negotiate and do not feel too emotional if you receive low offers. this is part and parcel of selling a property as you will get to meet opportunistic buyers.
Negotiate the best possible terms for yourself while keeping the buyer’s interest in mind. It is a delicate balancing act to agree on the sale price, completion date, and any other conditions that need to be met (ie: sale with vacant possession or with tenancy etc).
10. Issue The Option To Purchase (OTP)
This essentially means that you are selling your property to the buyer and giving him the rights to purchase within an agreed period and you will not be allowed to issue another OTP until the current one lapses. Understand the legal aspects and go through the Law Society Conditions Of Sale when drafting the OTP. The contract can be drafted by your property agent or your conveyancing lawyer. The buyer has to exercise the OTP within 14 days from the date of option or any period agreeable between both parties.
11. Sale & Purchase Agreement And Property Valuation
When the buyer has exercised the OTP, he will remit the 4% exercise fee to the conveyancing account of your appointed law firm. You will be expected to sign the Sale & Purchase Agreement (SPA), which will state the detailed information regarding the sale. If the buyer is taking a bank loan or using CPF to fund the property purchase, a property valuer will visit your place to appraise the property.
12. Pay Seller’s Stamp Duty (SSD)
If you sell your property within 3 years from the date of purchase, you are liable to pay the Seller’s Samp Duty. The SSD has to be paid within 14 days from the date of exercise of the OTP.
13. Complete The Transaction
This is the final step as you will hand over the keys to your lawyer, sign the remaining documentation and receive the balance sales proceeds. The lawyer will arrange for payments to be made to the respective parties involved in the property transaction.
To conclude, each property sale is unique, and these considerations can help you navigate the process of selling your property more effectively. Having a well-thought-out plan and professional guidance can contribute to an efficient and successful sale.
Frequently Asked Questions On Selling Condo
i. Can I Sell My Condo Without A Property Agent?
Yes, homeowners can sell their properties through For Sale By Owners “FSBO” platforms such as Carousell, Newspapers or 99.co.
ii. When Is The Best Time Of The Year To Sell My Condo?
While we have 12 months in a year to sell a property, technically the best time is to avoid major public holidays, long weekends and school holidays as most people are looking to spend quality time with loved ones or travel during this period.
iii. How Do I Sell My Condo Fast?
Similar to anything we want to get done, it is always in the best of your interest to prepare your house to showcase it in the best angles. This leaves a lasting impression on potential buyers.
Ultimately, you will also need to price your property reasonably to attract qualified buyers.
iv. Can I Still Buy HDB After Selling My Condo?
According to prevailing HDB regulations, you need to wait at least 30 months after selling your private property before you can buy a BTO/Sale of Balance Flat (SBF) or buy an executive condo (EC) from a developer.
For HDB resale flats, you need to wait out a 15-month period from the date of disposal/sale of your condo before applying to buy the HDB resale flat.
Thinking of Selling Your Property?
You may be thinking what is the next step for you and if it is worth going through the necessary work to sell your property.
When is the best time to sell and can I sell for a better price than my neighbours?
Here at The Landed Collective, we specialise in residential properties and that means, HDB flats, Condos, Landed Houses and New Developer Sales.
Before you start anything, speak to us for a complimentary consultation as we will provide you with comprehensive advice, run through the essentials on the property market and answer any questions you may have.