In making the biggest decision of reselling your HDB flat, you need to be sure that you pay attention to fine details and be certain that you won’t go wrong with it.
If you are quite unfamiliar with the entire process of reselling your flat, it is best to look for a trusted property agent to guide you through the entire process. On the other hand, if you wish to be more hands-on, you can do the entire process by yourself but remember that you are held liable for your own losses.
What You Should Consider Before Selling Your HDB Flat
The Minimum Occupancy Period is Achieved
Before you decide to sell your HDB flat, you need to make sure that you have fulfilled the Minimum Occupancy Period (MOP) of your house which is according to HDB, the Minimum Occupancy Period is the duration of time an individual is required to physically occupy the property before being able to sell it in the open market. The MOP is typically calculated beginning from the date you received the keys to your HDB flat.
Houses bought from HBD or resale homes purchased with the CPF housing from the open market will generally have a MOP of 5 years. You must take note that the duration of the MOP may change depending on how the flat was purchased, the flat type, the date of application of the flat, and the like.
Remember that the MOP excludes any duration when you do not occupy the flat or when there has been an infringement of the flat lease.
To have the specific Minimum Occupancy Period for your Flat, you can always visit site and ask further questions related to this matter.
Selling Just a Part of the Entire HDB Flat Lease
If you live in a four-room or smaller flat, or from an elderly household where the owners are 65 years old or older, you might want to consider applying for the HDB Lease Buyback Scheme (LBS) instead of selling your property.
In LBS, you can sell just a part of your flat’s lease to the HDB and retain the lease depending on the age of the youngest owner of the flat.
The sale proceeds of your flat’s lease will be utilized to top up the CPF Retirement Account (RA). you can then use this savings account to purchase a CPF LIFE plan. This will provide you with monthly income for your entire lifetime. The CPF LIFE plan will undoubtedly give you an income from your flat while living in it through your retirement years.
How to Sell Your HDB Flat?
You need to take note that all applications are processed using the HDB Resale Portal. You may begin by logging into this portal using your SingPass to manage your HDB flat resale online.
In re-selling your HDB flat, you must be able to observe the following steps correctly:
1. Register your HDB Intent To Sell on the Resale Portal and use the HDB-prescribed Option to Purchase
2. Submit your application on the HDB Resale Portal
3. Endorse your resale documents
4. Payment of resale fees
5. Acknowledge approval of the resale application
6. Attend the resale completion appointment
Cut Cost and Sell Your Flat Without an Agent
The Council for Estate Agencies (CEA) Singapore does not generally regulate and set guidelines for commission rates of the property agents. This is because of their objective to allow the market to drive competitive pricing in the specific industry.
Selling an HDB flat with an agent requires you to pay a fee which is a percentage of the transaction price of the flat. For HDB resale flats, the seller typically pays around two per cent of the sale proceeds as a commission.
This simply means that when you sell your flat, without the help of a property agent, you will save on the commission that is supposed to be given to the agent for their service. The saved money can then be used for home renovations and can be invested in other assets.
The Downside of Selling Your Flat Without a Property Agent
Selling your flat without any help from a property agent can also have its disadvantages.
Having no property agent, the help means you will have to do the leg work for the entire process of selling your flat. Some of the services that only property agents can provide include the following:
Comparative Market Analysis
Property agents can ensure that you have the best price for selling the flat as they are capable of doing the Comparative Market Analysis on your property.
Property agents are capable of negotiating with the buyer with another property agent representing the buyer and ensure that you close the deal with a favorable offer.
Background Checks on Buyers
An agent can also do background checks on potential buyers and is trained to look for “red flags” that may affect further transactions with the client.
Listing your HDB flat in online platforms may require boosting it for higher visibility. With an experienced property agent, you would no longer need to do this as it is part of their job to look for the best buyer for your HDB flat.
Property agents are paid to make sure that there are no issues with regard to the legalities and the paperwork is in the right place. An experienced agent will do the paperwork right and you will no longer have to do the hassle of making sure that the papers would not get in the way of selling your HDB flat.
A well-trained property agent can help you as they are equipped with basic home staging knowledge which can surely help with the presentation of your property on various listing sites.
What Happens to Your Proceeds?
Once your HDB flat is sold, the money you get after the sale will be allocated to the following:
· Return CPF monies
· Pay the outstanding home loan
· Resale levy
Remember that this varies from one HDB flat owner to another, so it is important to have an appointment with your trusted property agent to smoothen things out.
Selling your own HDB flat can be intimidating at first as it is not just like any items that can be immediately listed on online platforms without any legalities involved.
In selling your flat, all you need to do is to follow the steps mentioned in this article or immediately ask for assistance from a property agent. With that being said, may you be able to find the right owner to take care of your home.