3 Steps to Prevent Rental Scams
TLDR: Prevent Rental Scams in Real Estate Scammers are targeting prospective tenants by impersonating Real Estate Salespersons (RES) to deceive...
Read More
TLDR
When selling a condominium in Singapore, understanding the critical steps is key. First, ensure you are not liable for Seller’s Stamp Duty (SSD). Conduct thorough market research to set a competitive price. Focus on home staging rather than costly renovations. Utilize advertising and marketing to attract potential buyers. Prepare for negotiations by knowing the market well. Engage a lawyer for the Option to Purchase process. Once the buyer exercises the OTP, complete the sale smoothly. Consider seeking expert advice for strategic real estate decisions and connecting with the right buyers.
Selling a condominium in Singapore can be more of a challenge than selling an HDB flat, as you are dealing with a private property and with fewer regulations in place.
Having a reliable agent is vital to ensure everything goes smoothly, but you shouldn’t just sit back and relax.
It’s important to have a basic understanding of the process, so you’re not taken advantage of if your agent is inexperienced.
1. Check Payable Seller’s Stamp Duty (SSD)
If you bought your condo three years ago and now you’re selling it, this step doesn’t apply to you – skip ahead to step 2!
The Inland Revenue Authority of Singapore (IRAS) requires property owners to pay Seller’s Stamp Duty (SSD) to be eligible to sell their home.
Don’t forget, SSD is the tax payable to IRAS if you sell a property within the first three years of purchasing it. To ensure you’re not liable to pay SSD, you must hold onto your property for three years prior to selling.
If you are liable, you must make the payment within 14 days from the date of exercising the Option.
SSD rates from 11 March 2017 onwards
Find out how much you’ll need to pay for an SSD based on your home’s actual price or market value – whichever is higher – with this table, valid for properties purchased from 11 March 2017 onward.
Source: IRAS, Seller’s Stamp Duty (SSD) for Residential Property
2. Conduct Market Research & Post Condo Listing
Before listing your condo on the market, it is a smart move to research the prices of comparable properties in the area.
This will provide you with a ballpark figure to benchmark against, so that you may set an appealing yet realistic price and avoid being taken advantage of by a savvy buyer.
A couple of factors typically determine the price of a condominium:
- Remaining lease on the property (or if it’s a freehold)
- Condition of the home
- Whether furnishings will be included
- Location
Are you curious about your property’s estimated valuation? Look no further!
There are plenty of free property valuation tools available – or, you can contact me for a custom assessment using my specialized software.
3. Home Staging & Renovation
Presenting your home in a way that will draw the most potential buyers is what home staging is all about.
Giving yourself the best chance of a high sale price is as simple as putting your best foot forward and following this process!
Homeowners often set the stage to appeal to potential buyers by furnishing their home with attractive pieces and styling it in a way that helps them imagine themselves living there.
With most listings being viewed online today, hiring an experienced photographer and videographer is almost a must as they can best showcase your home’s features and give buyers a virtual tour.
Renovating your home before selling can be tempting, especially since renovations cost around $82,000 on average. However, buyers may not be willing to pay more for the renovations and new homeowners usually want to personalize their spaces.
Therefore, it is generally not recommended to renovate your home for sale, unless it is to repair broken features.
4. Find Buyers Via Advertising And Marketing
When it comes to selling a house, identifying prospective buyers is a crucial stage of the process. Advertising and marketing can be a great way to attract them.
A good real estate agent can craft a marketing strategy to highlight the outstanding features of your home, such as its position, area, and conveniences.
Your advertising efforts can comprise of online listings, print ads, social media campaigns, and open houses – an effective combination for success.
An experienced agent can leverage targeted advertising to reach key demographics, such as first-time buyers or retirees.
By employing various marketing techniques, your agent can whip up a storm of excitement around your property and attract a wide array of prospective buyers.
Ultimately, the aim is to identify a buyer who recognizes the worth of your home and is eager to make a fair offer.
5. Arrange Viewings & Negotiations
If you want to keep your profit margin, now’s the time to prepare for battle! Your initial asking price isn’t set in stone and buyers may try to knock it down with curveballs.
It’s essential to be ready with counter-arguments. To stay ahead of the game, brush up on the area’s market research. Know the prices of properties in a 1km radius and have the district’s transaction history on hand; that way you can back up your price with solid numbers.
Despite the amount of work an average person can do, engaging a specialized property agent for your transaction will give you the greatest advantage; even more so when your agent is an expert in your town or district.
6. Contact A Lawyer & Grant Option To Purchase
Engaging a lawyer to draft the terms and conditions in the Option to Purchase (OTP) and draw up the required documents for the transfer of ownership is a key step in this process.
In contrast to HDB flats, whose OTPs can be accessed from the HDB website, OTPs for private properties must be prepared by a lawyer or an agent with the legal authority to manage real estate paperwork.
Once you’ve drafted the OTP, your buyer can purchase it from you at 1% of your condo’s selling price – though of course, this amount is negotiable between both parties. The Option Fee acts as an incentive to prevent the buyer from backing out after you’ve turned away other interested buyers and saved the house for them.
Once the buyer and seller have reached an agreement on the price, the seller must sign the OTP to launch the Option Period. This can last anywhere from two to ten weeks, depending on the progress of negotiations.
During this window, the buyer can choose to exercise the OTP, thereby showing their intent to purchase the property.
7. Buyer Exercise OTP
At this point, your only course of action is to wait for the buyer to formally accept your offer. When they do, your legal representative will let you know.
As far as payment goes, the buyer typically pays 4% of the selling price to the conveyancing account of your law firm (unless you’ve previously made other arrangements). After that, you will officially sign the Sale and Purchase Agreement with the buyer.
Remember that if the buyer chooses not to move forward with purchasing your home and does not act on the Option to Purchase within the allotted 14-week timeframe, the Option Fee will be forfeited.
8. Complete The Sale
Once you have engaged a lawyer or property agent for your sale, it should be relatively straightforward from here on out.
On the final sale date, all that remains is to sign the necessary paperwork and present the keys of your property to the new owner.
Be sure to vacate the property prior to the ownership transfer. If you must extend your stay beyond the transfer date, private arrangements should be made between you and the new owner.
They may extend you a courtesy by allowing you to stay rent-free for a while, though they are not obligated to do so since taxes and maintenance become their responsibility upon transfer of ownership.
Should You Buy, Sell or Wait?
If you’re reading this, you must be trying to figure out the best course of action right now: is it the right time to buy or sell?
It’s difficult to give an exact answer since everyone’s situation is unique and what works for one person may not necessarily work for you.
I can bring you a wealth of on-the-ground experience and a data-driven approach to provide clarity and direction. From beginners to experienced investors, our top-down, objective approach will help you on your real estate journey.
I can help you by:
- Offering Strategic Real Estate Advice – I can help create a comprehensive plan to guide you through your property journey.
- Connecting Your Home with the Perfect Buyers – Through stunning visuals, an effective communication strategy, and an in-depth knowledge of the market, we’ll ensure your home is presented in the best possible way to fulfill your goals.
You May Also Like …
Top 5 : Exploring the Streets of Singapore – A Journey Beyond Just Shopping!
Singapore, a vibrant city-state known for its diverse culture and rich history, offers a plethora of unique experiences that go...
Read More
The Psychology of Property Investing: 5 Reasons Why Singaporeans Love Real Estate
Real estate investing has always been a popular way to grow wealth and secure financial stability. In Singapore, the love...
Read More
Top 5 Must-Know Facts about Luxury Properties in Districts 9 of Singapore
Singapore, a bustling city-state known for its impressive skyline and vibrant economy, has always been an attractive destination for property...
Read More
The Hidden Hurdles of Purchasing a BTO Flat in Singapore: Unveiling 4 Lesser-Known Challenges During the 5-Year MOP
TLDR When contemplating the purchase or sale of a property under the Minimum Occupancy Period (MOP), it's crucial to consider...
Read More
Top 5 Must-Do Experiences in Singapore for First Timers
Singapore, a vibrant city-state known for its diverse culture and rich history, offers an array of unique experiences for first-time...
Read More
5 Top Reasons Why Chinese Love to Invest in Singapore Property Market Today
Here are the top 5 reasons why Chinese love to invest in Singapore's property market today. 1. Political stability: Singapore...
Read More
Introducing Top 5 Power Property Tips
Hello, everyone! We are excited to welcome you to our blog posts! On this blog, we will be sharing daily...
Read More
5 Cons Of Buying A Resale Property
Luxury properties in Districts 9 and 10 of Singapore are highly coveted, and for good reason. From stunning views and...
Read More
Finding the Perfect Match: Top 20 : A Guide to Choosing the Best Property Agent in Singapore
TLDR When it comes to buying or selling real estate in Singapore, having a professional and knowledgeable property agent is...
Read More
What Is The Best Location To Purchase A House To Ensure Your Child Has The Highest Probability Of Attending A Well-Renowned Primary School?
TLDR Parents often seek homes within 1km of desired primary schools to increase enrollment chances. Consider oversubscription rates and population...
Read More
Top 5 Tourist Attractions in Singapore
Top 5 Tourist Attractions in Singapore Singapore, a vibrant city-state located in Southeast Asia, is known for its diverse culture,...
Read More
How to Build a Property Empire in Singapore: Scaling Your Investments
Real estate investing is a popular way to build wealth and generate passive income. However, like any investment, it comes...
Read More
Say Goodbye to “Sell One, Buy Two” Approach in 2024
TLDR Summary: The "Sell One, Buy Two" real estate tactic, popularized in 2016-2017, involves selling a property and buying two...
Read More
Increase in ABSD April 2023
TLDR The impending rise in ABSD (Additional Buyer's Stamp Duty) is expected to suppress investment demand, allowing local homebuyers to...
Read More
Top 5 Best Hidden Boutique Hotels in Singapore
Singapore, a vibrant city-state known for its iconic landmarks and diverse culture, offers a plethora of accommodation options for travelers....
Read More
Explore the Benefits and Drawbacks of Holding an Open House!
TLDR An open house is a valuable opportunity for sellers to showcase their home to potential buyers without pressure. It...
Read More
The High Price of Picking the Wrong Property in Singapore in 2025
The Steep Price Of Making A Mistake When Buying Property In Singapore Are you yearning for a condo, but the...
Read More
Top 5 : Best Karting Circuits in Singapore
Singapore, a bustling city-state known for its modern architecture, cleanliness, and vibrant culture, is also home to a thriving karting...
Read More
Does Sell 1 Buy 2 Strategy Still Works Today in 2024?
TLDR When considering the "Sell One By Two" property investment strategy, keep in mind that it involves selling your previous...
Read More
