resale HDB | SGPD

A Guide to Selling Your HDB Flat

Shelwyn @ SGPD — Tue, 19 Sep 2023 07:33:57 +0000

What are the first steps if I am looking to sell my HDB flat?

Ensure first that you have fulfilled your MOP, then register your Intent to Sell on the HDB Portal.

Next, look for a property agent to help you list your flat for sale.

You can also choose to list your flat on your own, however you will be not be able to post on some popular agent-only portals, such as PropertyGuru and will have the manage the entire sale process yourself.

Some options to list your own flat for sale are Carousell or Facebook groups posts.

How should I prepare before I accept viewing appointments?

Declutter and keep your flat clean.

During the viewings, keep your home bright and breezy and replace any light bulbs that are not working.

These will potentially increase your chances of offers coming in from potential buyers.

Be prepared to answer questions on price negotiations and state upfront should you require a 3-month extension to continue staying in the flat upon resale transaction.

I would like to accept an offer, what's next?

Check that the buyer has a valid HFE letter and meets the EIP and SPR quota.
Issue an Option to Purchase (OTP) to the buyer after your have registered for an Intent to Sell for at least 7 days on the HDB Portal.
The buyer needs to pay you an option fee between $1-$1000.
In turn, you are not allowed to grant another OTP to another buyer with your acceptance of the option fee, unless this OTP is not exercised upon the expiry date.
Wait for the buyer to exercise the OTP within the option period of 21 calendar days.
To exercise the OTP, the buyer will have to pay you an option exercise fee of not more than $5,000, including the option fee that was paid to you previously.

After the buyer exercised the OTP, how do I complete the purchase?

Both you and the buyer are required to individually submit your portions of the resale application within the specified timeframes:

Within the designated number of days mentioned on page 4 of the OTP.
Within 7 days of each other’s submissions.

If both parties’ application and documents are in order, HDB will notify you and the sellers of their acceptance of the application.

Thereafter, it will take about 8 weeks to process the application and complete the transaction.

Upon the successful completion of the resale transaction, you are required to vacate the flat, unless of course, you have negotiated and signed the agreement with the buyer for a 3-month occupancy extension.

Did I miss anything?

If you have any other questions that I did not address

The post A Guide to Selling Your HDB Flat first appeared on SGPD.

SGPD 60-Sec Read: How to buy a resale HDB flat?

Shelwyn @ SGPD — Wed, 06 Sep 2023 06:05:43 +0000

What is the first step if I am looking to buy a resale HDB flat?

First of all, apply for the HDB Flat Eligibility (HFE) letter on the HDB Portal.

This letter will provide you with information about your qualification to purchase a resale flat, in addition to outlining the CPF housing grants and HDB housing loan amount you are entitled to.

If you are intending to take a home loan from a bank instead of HDB, then you should concurrently apply for an In-Principal Approval and subsequently get the Letter of Offer (LO) from the bank.

So I have the HFE letter, what's next?

Congrats! With the HLE letter in hand, you can now set a budget for your search. Your HFE letter is valid for 6 months.

PropertyGuru is by far the most popular portal where the latest resale listings are posted and updated regularly.

Start with a shortlist of about 3-5 resale flats and set up viewing appointments.

You should always visit the flats you like at least twice, preferably at once in the day and once in the evening.

This will give you a good idea if there are any night and day differences or if you spot any dealbreakers.

I would like to buy a resale flat that I like, what is next?

(A) Obtain an Option to Purchase (OTP):

Get an OTP from the seller or seller’s agent. The seller needs to have already registered for an Intent to Sell for more than 7 days before an OTP can be issued to you.
You will need to pay an option fee between $1-$1000 to the seller.
You will need to submit for a Request for Value by the next working day after you get the OTP.
You have 21 calendar days to decide if you would like the exercise the OTP. Exercising means you have decided to buy the flat.
If you are getting a home loan from a bank, you will need the LO before exercising the OTP.

(B) Exercise the OTP:

With the HFE letter (+ LO for bank loan) and HDB’s valuation, you may exercise the OTP if you decide to purchase the resale flat.
You will then need to pay the seller an option exercising fee of not more than $5,000, including the option fee amount that you’ve already paid.

After exercising the OTP, how do I complete the purchase?

Both you and the seller are required to individually submit your portions of the resale application within the specified timeframes:

Within the designated number of days mentioned on page 4 of the OTP.
Within 7 days of each other’s submissions.

If both parties’ application and documents are in order, HDB will notify you and the sellers of their acceptance of the application.

Thereafter, it will take about 8 weeks to process the application and complete the transaction. This is the earliest possible date to complete the transaction.

You may possess the flat after transaction is completed, unless you have agreed to give an extension (maximum up to 3 months) to the seller.

Did I miss anything?

If you have any other questions that I did not address

The post SGPD 60-Sec Read: How to buy a resale HDB flat? first appeared on SGPD.