Selling Your HDB Flat

Selling Your HDB Flat - DIY HDB Resale

What DIY Sellers need to know about Selling your HDB.

Has the thought of selling your HDB flat has crossed your mind? Perhaps its not because you want to make a profit but its just time for you to rightsize, i.e. upgrade to a bigger flat to accommodate a bigger family or downgrade to a smaller one because your children have moved out.

Hiring an agent is usually the least troublesome way for you to sell your flat. However, if you choose to DIY the process or go via the FSBO “For Sale By Owner” route, you should take note of the following.

1) Ensure that you have met the Minimum Occupation Period (MOP)

To sell off your HDB Flat, firstly, you have to ensure that you are eligible, i.e. met the Minimum Occupation Period (MOP) which varies depending on when you first bought your flat or have had any change of ownership in the recent years.

If you are not sure if you've met the MOP, you can submit a request to HDB to confirm that you are eligible to sell your flat.

2) Submit the resale checklist for sellers.

The resale checklist is a declaration to HDB that you have carried out the necessary checks before putting your flat up for sale. This is a sample of the resale checklist that you have to acknowledge at least 7 days BEFORE granting any option to purchase to a buyer. This has to be done via the HDB website and you will need to login with your Singpass to complete this process.

The contents of the resale checklist will take you through crucial information that you need to declare to HDB for e.g.

  • a) Eligibility to sell the flat
  • b) Your plans for your next home and to ensure you have the necessary finances to settle it, including determining the amount you need to put back into your CPF account.
  • c) That you will only use HDB’s prescribed Option to Purchase and will not enter into supplementary agreements that might go against HDB’s rules.
  • d) Resale Levy and Upgrading Costs :

 -  The resale levy would come into the picture if you decide to purchase a SECOND SUBSIDIZED Home. Read our Article for more info.

-  Upgrading costs are costs associated with lift upgrading (LUP), Home Improvement Programme ( HIP) etc. HDB would have informed you regarding the amount you would need to pay. If the sale of the home happens before these programmes are completed, the buyers might need to foot the bill.

Note : If you hire an agent, this is also a necessary step. However, the agent will first login to his or her account to kickstart the process and go through the checklist with you. You will then have 24 hours to acknowdedge it.

3) Be familiar with the HDB resale process

As of 10 March 2014, Sellers are no longer allowed to submit a request for a valuation report. This can only be done by the buyer AFTER a price has been agreed on between the buyer and the seller.

This means that sellers will not be allowed to place a COV or cash-over-valuation premium on the price of the flat. ( If any HDB buyers are reading this article, this does not mean that COV no longer exists. You might still have to pay cash for the flat if the valuation of the flat is below the final selling price of the flat. You can refer to this article for more information. )

To get an estimate of the flat prices in your area, you should check the HDB's Recent Transactions .

Do note that flats on

· a higher level,

· in the corner,

· that’s closer to MRT stations or shopping centers

· Facing an open or unblocked space

will usually get a higher valuation than that of a lower level.

The valuers might also give a higher valuation for renovated units as oppossed to unrenovated ones.

4) Dress your home up for a higher selling prices

You might want to check out our post on the importance of staging your own home to get a higher selling price in a slow market.

Selling my home at a higher price

5) Market your home

List your home in various For Sale By Owners portals, like Gumtree and Craiglist. Most of the Property portals have a paid subscription but STProperty has a ‘direct seller’ listing which allows you to post the ad for a max of 60 days.

Property agents rely on a mix of online portal, in-house listing services ( through their own agencies) as well as through informal and formal networks. As professionals, buyers often approach us to find something that suits their needs.

6) Decide on a Buyer

If a Buyer comes without an agent, you might want to check if they have done their finances and have a valid HLE (Housing Loan Eligibility) or an IPA ( In Principal Approval) from a bank.

If everything is in order, and the buyer has agreed to your selling price, you should grant them the Option to Purchase. The buyer would need to put in an option between $1 to $1000 to secure this option and have a 21-day period to put in a request for valuation as well as get a letter of offer from their banker. During this 21 day period, sellers are not allowed to offer/sell the flat to any other buyers.

Sellers would receive a call from the valuation company who would come and take a look at your home to determine the valuation price or the value of your home.

The next step would be to submite a resale application to HDB.

Refer to the following video by HDB to understand the process

7) Submiting the Resale Application

Buyers or Sellers would need to decide on a date for the first appointment based on the list of available dates on HDB’s website. There after, either the seller and the buyer can submit the resale application to HDB via their website. The other party would need to confirm within 7 days.

The resale application costs $80 for ( 3 room and larger flats ) and $40 for (1-2 room flats). Both the buyer and the seller need to pay this admin fee.

This application can also be submitted by your agent via their agency to make the entire process less of a hassle for you.

After the submission, the sellers would receive a call from the valu

You can also watch this video by HDB on the process after the submission of the resale application.

8) During the First appointment

You may want to read up on what would take place durinng the first appointment on HDB’s page here.

The HDB’s letter confirming the date and timing of the first appointment will also indicate a list of the necessary documents you need to bring along.

As sellers, you would need to engage either HDB or a lawyer to handle your conveyancing and legal process. HDB’s fees depends on your flat size and if you have an existing loan but are significantly cheaper than a lawyer but there are also instances where you would need to hire a lawyer , for example, if you need the proceeds to be split into individual cheques for separate owners, rather than into a joint account.

9) During the second appointment

Unless the seller has formally requested an extension during negotiations, this is the final appointment with HDB and where the Sellers would hand over the keys to the buyers.

This also means that the before the appointment, the seller must have vacated the unit and that buyers have been given a chance to inspect the premises, usually the day before the appointment.

You might want to read up on what happens during the second appointment here.

Overwhelmed? Dont Be. Let Us Help


Do you have a question regarding the process or about your financial calculations as well as the time line of buying and selling a flat (i.e. to ensure that you have a roof over your head the entire time)

SMS/Call us at 96918885 or at askus@propertyrocking.com to reach a team of qualified and experienced Property Agents.

 

The following two tabs change content below.
Siti Zubeidah is a Marketing Director with ERA Realty Network Pte Ltd. (CEA No.: R050625J) She has a Bachelors Degree in Informations Communications and Sociology from the National University of Singapore (NUS) and a Masters of Mass Communications from Nanyang Technological University (NTU). With vast experience in the HDB market, Private and Landed Properties in Singapore, she is confident that she can assist you to make the correct decision regarding the purchase of your dream home as well as to get you the best price on the sale of your property. She can be contacted at 96918885 or at askus@propertyrocking.com.