The Housing Development Board (HDB) launched its resale portal in 2018, with the aim of making it easier for prospective buyers and sellers if they want to transact without the services of property agents.
If you were to engage the services of a property agent, you will have to pay a commission when the transaction is completed.
According to the Council for Estate Agencies (CEA), there is no fixed commission rate. The standard market rate for HDB resale flat is 2%, which is usually paid by the seller of the property.
With HDB resale prices rising 14 consecutive months, a 2% commission can be a hefty sum of money. If your HDB flat can fetch at least $500,000, the commission you save is $10,000.
In today’s article, we will look at how to sell your property without the services of a property agent and save on agent fees.
Market research
By using the HDB resale portal, you can find out the transaction process, what forms need to be filled up, documents to submit, etc.
You can also find out the latest transaction prices and that will give you an estimated value of your property so that you can set a realistic selling price.
The HDB resale portal will give you the latest transacted prices according to the property type, such as the number of bedrooms and size.
You can also find relevant information such as transacted date, lease commencement date, remaining lease and even the level of the transacted flat.
This information will allow you to know the price range that your unit is likely to fetch.
Of course, if your unit is recently renovated or in excellent condition, you can up the asking price by about 10 to 20 %.
For private property transactions, you can find them from the URA. Here, you can find past transactions by individual developments, again, with all the relevant information available.
Create a 360 virtual walkthrough
Due to the ongoing pandemic, creating a 360-degree virtual walkthrough is a must.
Potential buyers can view your property first without having to visit. With modern technology, there are numerous cameras that allow you to DIY without engaging the services of a videographer.
Typically, a professional virtual tour would cost between $200 to $500.
Remember to upload the virtual tour onto your online advertisements.
Market your own listing
Currently, there are many channels and many property portals that you can market your property for sale.
Most of them allow searches by property type, district or location, budget and features.
So when listing your property, be sure to include as much information as you can. Other than the essential information, you can add in any special features of your home or any unique selling point that will attract potential buyers.
Most people start their home search by browsing the internet and that means they will be checking out the photos you post.
Make sure to have multiple photos attached to your listing and showcase the strong points. If you have an island kitchen, post a photo of the island kitchen.
Other than online property portals, there are also other platforms that you can use, such as Carousell, Gumtree or even the classifieds.
And do not forget about social media. Instagram and other social media apps could help you market your property.
Your circle of friends and followers may not be interested in buying a property now, but your friends’ friends could be on the hunt for a new home.
The above are all the things that a property agent would do when they represent you in selling our property. So to save on agents fees, these are the things that you have to do yourself.
Now let’s take a look at the process of selling an HDB flat, which is a bit more complicated than selling private property.
After you have advertised and found a buyer, you will need to register an Intent to Sell by logging into the HDB Resale Portal using your Singpass.
The portal will guide flat sellers through the following steps:
1. Register intent to sell
Upon registering an Intent to Sell, you will be informed of your eligibility to sell your flat instantaneously and when you can the Option to Purchase (OTP) to the potential buyer.
You will also receive information on the Ethnic Integration Policy/Singapore Permanent Resident (EIP/SPR) Quota for your block; and status of upgrading, billing of upgrading costs, and even recent transacted prices of nearby flats.
Your Intent to Sell is valid for 12 months and it must be valid when you grant the OTP to the buyer.
After registering the Intent to Sell, you can download a copy of the OTP and compute your estimated sale proceeds. Take note that there is a 7-day cooling-off period before granting the OTP to the buyer.
2. Submit resale application
After exercising the Option to Purchase (OTP), both you and the buyer must submit your respective portions of the resale application, together with the necessary documents, to HDB via the HDB Resale Portal.
Upon receipt of the resale application and supporting documents, HDB will verify the information provided and assess the eligibility of both the buyer and the seller to ensure that all the eligibility conditions and resale requirements are met.
Once approved, HDB will notify you and the buyer via SMS or email of the approval of the sale. On average, it will take about 8 weeks to process the application.
There is an administrative fee of $40 for 1 and 2 room flats, and $80 for 3 room and bigger flats, to be paid by both buyer and seller. Payments can be made online via credit card (Visa or MasterCard) when using the HDB Resale Portal.
3. Acknowledge and endorse resale documents
After you have submitted your resale application, HDB will compute your estimated sale proceeds, the buyers’ financial plan, as well as the relevant forms and undertakings for the sellers and buyers to endorse.
Once these documents are ready, they will be posted on the HDB Resale Portal and both parties will be notified via SMS, to endorse these documents within 6 days.
If you or the buyer failed to endorse the documents within the deadline, the resale application may be cancelled.
4. Pay resale fees
After endorsing the resale documents, you will be directed by the HDB Resale Portal to make payments for the legal fees (conveyancing, title search and caveat fees) online.
Payment can be made through credit cards (Visa/ MasterCard) or by scanning the QR code using any of the supporting mobile payment apps within the notice period given by HDB.
5. Approval of resale
Approval for the resale application is usually given within 2 weeks after both parties have endorsed the documents prepared by the HDB.
An SMS and email notification will be sent to both parties once the application is approved, and the approval letter will also be posted on the HDB Resale Portal.
The approval letter will contain information on the date of HDB’s flat inspection, usually 5 days after approval of the application and the tentative resale completion appointment date.
6. Completion of resale
Once the completion appointment is scheduled, HDB will notify both buyer and seller via SMS.
The completion letters will also be posted on the HDB Resale Portal. Both parties are required to attend the resale completion appointment at HDB Hub if you and the seller both engaged HDB’s solicitors to act on the conveyancing of the resale transaction.
So, there you have it!
The procedure of how you can sell your property without the services of a property agent and in the process, save a ton of money.
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