A Guide To Selling Your Property In Singapore
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We also help people who want more income after seeing an asset such as a property.
Introduction
If you are planning on selling your property in Singapore, this article will walk you through the process in a straightforward 10-step process.
Specifically, this article will discuss how to sell your property in Singapore on your own without an agent as it is the most common practice in the small city-state.
Although it may seem incredibly brave to sell your condo or private property without an agent, Singapore is seeing an increase in this practice.
Most sellers are definitely more accustomed to having real estate agents participate in the process traditionally. But if you’re ready to put in the work, you’ll be able to avoid paying a commission to a real estate agent.
For instance, a 2 percent fee on a $1.5 million property is already worth a staggering $30,000! That is definitely worth it. In fact, interacting directly with owners is preferred by certain buyers in Singapore, so you get extra points for it!
To be honest, the decision to sell your property may be a burden if you don’t plan to work with a real estate agent. You must handle the majority of the paperwork on your own, and for many of us, finding a buyer and marketing our properties may be difficult tasks.
But because you’re still reading, it’s probably because you really plan on selling your property in Singapore on your own. And despite what you would think, it might not be as challenging to do the task yourself as many like to think.
10 Simple Steps of Selling Your Property In Singapore
1. Decide on an asking price for your property.
You must decide on your asking price before you start any marketing efforts for your property. You should decide on the lowest price you are willing to accept because potential buyers will probably want to haggle with you.
You should also consider the price you want to offer for your home if you are not in a rush to sell it and would rather wait if it means obtaining a higher price. You may come up with a decent amount by doing research on the costs of comparable properties in your neighborhood.
Tip #1: Look up comparable property listings to compare your asking price.
It doesn’t hurt to look around and see what’s being offered for sale in the real estate market right now and for what price.
To avoid being grouped in with the rest of the competition, look for price point gaps as you do this.
For instance, if the majority of the condominiums up for sale in your neighborhood are listed between $1.1 million and $1.3 million, put your apartment in the middle of the $1.2 million to $1.3 million price range so that it will stand out while potential buyers are perusing the listings.
Tip #2: Utilize the resources and instruments provided by the government.
The website of the Urban Redevelopment Authority (URA) also maintains track of recent sales of other condominiums nearby or in your building.
However, keep in mind that these costs may have been reduced from the initial amount requested. So if you want to sell your condo for $900,000, for example, you could try to list it at $925,000 to allow for negotiation—a somewhat higher but still reasonable sum.
2. Advertise your property for sale.
The following step you should do is to list your property for sale. You may now effortlessly and conveniently advertise the sale of your home by using the reliable internet. Platforms for the real estate sector include Carousell and PropertyGuru.
Additionally, to increase the reach to your consumer base, consider posting them on multiple marketplace sites.
As you prepare to list your property for sale, make sure you have all the details ready, including the square footage of the property, a description that will appeal to potential buyers, and photos of your tastefully arranged home.
Tip #3: Tidy up your property before taking any pictures for advertisement.
Of course, before taking any shots, you should clean up your property. You’ll have an easier time relocating if you get rid of all your junk immediately. Win-win!
Consider this:
- Place personal care products in your toilet, such as toothbrushes (although a freshly laundered towel hanging nicely on the rack could pass off as an aesthetic addition).
- It may be enticing to show off your adorable dogs, but resist the urge. Pets are adorable in the opinion of about 98 percent of people (the remaining 2 percent are mistaken), but not everyone can picture themselves sharing their home with one.
- If you look for property staging advice online, you’ll undoubtedly come across multiple articles advising you to take down framed certificates, family photographs, and the like. The aim is to depersonalize your property so that potential buyers can picture living there, yet we’re all becoming savvy enough to recognize when something is being unduly staged. To demonstrate to potential purchasers that this may genuinely be a home dear home, we even think it could be desirable to leave these unique details in place.
Tip #4: Include important details about the property on the listing.
Additionally, you should keep an eye out for any upgrades or new construction in the neighbourhood, since these things could make buying the property more appealing. Your home is available for public inspection once you have uploaded all the necessary data.
Your listing’s description is equally important. Include every relevant detail:
- What size is it? Not merely the quantity of rooms, but also their square footage or square meters. Either unit of measurement may be more recognizable to folks looking for their future property.
- Where is your apartment located? Does it have a beautiful view if it’s on a high floor?
- Was there a recent renovation? Some potential buyers could be searching for a property that just needs minor renovations.
- Is your condo close to a mall or the MRT? Be precise since everyone would say their home is “near XXX” A five-minute stroll? two bus stops away?
- Are there any unique facilities within the development?
- Is it a freehold or a leasehold property? Homebuyers may be seeking for a property with long-term worth, and they may consider this a significant aspect. How old is your condo, and how many years are remaining on the lease if it’s a leasehold unit?
3. Entertain viewings of your property.
It is more probable that prospective buyers will decide to buy a property if they had the chance to tour it. So, you should make your property available for viewing. A method of contact, such as your email address or cellphone number, should be listed in your advertisement so interested buyers may schedule a viewing.
As soon as clients arrive, make sure the property is prepared. Additionally, if you have a busy schedule, you may allow many clients to visit the property within the same time period. This suggests to the customers that the acquisition of the property is attracting a lot of attention, which may prompt them to move swiftly to make a purchase.
4. Negotiate the price.
The customers will almost always try to bargain down the price of the residence. As a result, your comments must be well-thought-out. Spend some time thinking about the pricing you are willing to accept if this is your first time negotiating.
Even if you want to have your home sold as quickly as possible, you should get practice turning down lowballers if you have trouble saying no to individuals.
Due to little to no interest in buying your property, it could be tempting to accept a low offer. However, respectfully refuse them and be patient while you wait for another bidder to get in touch with you.
Remember that customers will undoubtedly think about the cost and may require additional time to do so. After all, they will be buying property.
5. Hire a conveyance lawyer to assist you.
The legal process of selling real estate to a new owner is known as conveyancing.
A conveyance lawyer is necessary even if you don’t require an agency (find one here). To ensure that you, as the seller, have a solid root of title, the conveyance attorney will perform a title search. To claim that there are no problems with your title to the property, such as a mortgage.
The sale and purchase agreement (SPA) or option to purchase (OTP) will start when the lawyer of your buyer engages with your conveyance lawyer. You can work with private attorneys or the attorneys for HDB if you are selling an HDB apartment.
Regarding private properties, you’ll need to speak with a private attorney who can handle the conveyancing procedure on your behalf. Under your direction, they will prepare the OTP for you.
You should be aware that HDB attorneys will need you to be present at the meeting where the completion of the sale is decided, so if you are on a strict schedule you could choose to employ a private lawyer who will handle it on your behalf.
You may now proceed with selling your property in Singapore legally after this has been confirmed.
6. Grant the Option to Purchase (OTP) and secure a 1% option or booking fee.
The OTP will be sent to a prospective buyer, who must use it within the specified time-frame—typically 14 days—after obtaining it in order to enter into a sales contract with you.
You should negotiate an option fee, which is effectively cash in return for your OTP, in order to maintain the buyer’s interest in the acquisition of the home. Normally, 1% of the property’s purchase price is charged as the option fee.
The conditions of the sale and purchase of your property will be outlined in the option to purchase. For example, the buyer will be required to affirm that they have inspected the property for physical flaws and are willing to assume the associated risks.
7. Hold off until the buyer exercises the option to purchase.
In order for the buyer to exercise the option to purchase, they must do so within the deadline of 14 days by sending your attorney the completed contract and the option money.
Your property will be formally sold after this procedure is finished. You have the right to keep the option fee in the event that the buyer decides not to exercise the option to purchase.
8. Issue a Sales and Purchase Agreement and get a 4% Exercise Fee within 14 days of the OTP.
Collect a 4% Exercise Fee from the buyer once they exercise their option to purchase, then engage into a Sale and Purchase Agreement with them. Typically, the buyer’s attorney holds the exercise fee until the deal is finalized.
Usually, the Sales and Purchase Agreement will state the following:
- Information pertaining to each party, including buyer and seller names, identification numbers, registration addresses, etc.;
- The property’s address, square footage, price, whether it’s being sold furnished, whether an inventory list is necessary, the move-in date, etc.;
- Price of the property; Option Fee already paid; instructions on how and when the remaining payment is to be made;
- Rights and obligations of the buyer and seller, such as the requirement that each party should pay their respective stamp fees and withholding taxes
The next steps should take 8 to 10 weeks, including giving your buyer the property title and ensuring that you get the remaining 95% of the payment.
9. If the property you are selling is a condo unit you own for less than 3 years, you must pay stamp duty.
A Seller’s Stamp Duty (SSD) of 4–12 percent of the final selling price of your property is due in Singapore if you sell your condo within three years of ownership (12 percent if you do so during the first year, 8 percent within the second, and 4 percent within the third).
Due to this rule, it’s best to wait to sell until three years have passed.
If you aren’t in a rush to sell your house but aren’t residing there either, you can think about renting it out while you wait. It is absolutely feasible to pinpoint your ideal renter demographic, whether your condo is a little studio in the city or a large home in the suburbs. Why would you reject passive income?
10. Complete the deal and get ready to move out.
From this point on, your lawyer should handle the majority of the paperwork and transaction for you. Your part will simply be to sign certain paperwork to complete the sale of your property. They will also tell you when the house will be sold and when you will give over the keys to the new owner.
As that day approaches, you should start making plans for moving out as well. You will thus need to start packing your belongings and shifting to a new location. So that you have enough time to relocate the stuff and yourself out of your previous residence, make sure to make plans for your belongings and your new address as soon as feasible.
Final Thoughts
The procedure may appear laborious, and the paperwork may be intimidating, but if you follow these steps and cooperate with a conveyancing lawyer, the effort of selling your property in Singapore will not be as difficult as you may imagine. Whatever the reason for selling your property in Singapore, bear in mind that it is a rather simple procedure that you will be able to complete on your own. However, if you have any questions or want to learn more about selling your property in Singapore, please contact an expat counselor in Singapore.
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Adam is an internationally recognised author on financial matters with over 830million answer views on Quora, a widely sold book on Amazon, and a contributor on Forbes.
