Hdb Resale Process
A Comprehensive Guide For Hdb Owners
We have finally reached Phase 2 of the reopening of our economy. The past two months have been out of the ordinary to say the least, and I am glad that we are out of the woods – for now.
With the lifting of restrictions, I am seeing more homeowners reaching out to explore their next phase of life – post COVID-19.
Well, perhaps the 20,000 units that will be reaching MOP in 2020 this year could explain this surge in inquiries.
I have answered this question probably more than a hundred times during my course of work, I figured, why not answer this as a useful guide on the blog for all curious homeowners like yourself.
Table of Contents
HDB Resale Procedure
I have summarised the Hdb resale procedure in 12 steps:
1) Calculate your finances
2) Decide whether to engage an agent or DIY
3) Register intent to sell
4) Market your unit
5) Arrange house viewings for interested buyers
6) Option to purchase (OTP)
7) Buyer request valuation
8) Buyer to exercise OTP
9) Submit HDB resale application
10) House inspection
11) Endorse resale documents
12) HDB resale confirmation and completion
Check HDB selling price
You may obtain an indicative selling price through HDB website, by sieving through similar unit types that were sold / transacted around your area.
You may also use SRX x-value indication below as a guide. Just key in your address and size of your unit, to get an indicative price.
HDB Financial Calculator
One simple example: the repayment of CPF accrued interest will eat into your cash proceeds.
Did not know that? Not to fear.
You can make sure you have the right calculations by using this simple HDB Selling Financial Calculator.
Request Property Report
Engage a Property Agent or DIY
Once you are clear about your finances, the next step is to decide how you want to go about it.
Do you prefer to handle the entire process yourself or leave it to a professional?
Property agents can help you with the nitty-gritty and the complex parts of the process like:
- Handling the complex paperwork processes
- Marketing your unit right
- Prepare comprehensive buyer presentation kit
- Arranging house viewings
- Negotiating with the buyer
If you are an experienced property owner who knows what you are doing or can put in the time to handle the various steps and procedures, then skip ahead.
Register Intent to Sell
Before you even begin to start marketing your HDB flat for sale, make sure that you register your Intent to Sell.
This is so that HDB can assess your eligibility to sell the flat and who is eligible to buy over your flat. It is simple enough to register: Simply log in to the HDB Resale Portal and submit the relevant details.
You can only officially issue the HDB option to purchase after 7 days of registration.
Do note it is valid for 12 months, so you will need to re-apply should you not sell the flat within 12 months.
Marketing Your HDB for sale
Now it is time to promote your unit and find yourself a buyer.
With an increasingly saturated market where DIY property platforms list thousands of homes daily, it may seem like a daunting task.
Arrange House Viewings
HDB Option to Purchase
Once you have an agreeable buyer who is happy with your sale price, you can grant them an official HDB Option to Purchase (OTP).
It is like a commitment from the buyer to you.
They will pay an Option fee in exchange for the OTP, which will be valid for 21 days during which they have to make a decision.
Buyer Request Valuation
Buyer to Exercise OTP
Hurray! Your transaction is almost complete.
Submit HDB Resale Application
The next step is for both you and the buyer to submit your individual portions of a resale application document online at the HDB Resale Portal (within 7 days of either submission).
If you intend to apply for the Enhanced Contra Facility (ECF), you’ll need to indicate it in the resale application.
There will be a mandatory inspection joint inspection arranged by HDB to check for any illegal or structural defects in your unit after submitting the resale application.
Endorse Resale Documents
After submission of your application, HDB will prepare a series of forms and undertakings for both you and the buyer to endorse on the platform.
As well as requiring your payment for the administration fee for the process.
HDB Resale Confirmation and Completion Appointment
The very last step concludes with you receiving a confirmation letter by HDB and scheduling an appointment with HDB and the buyer for the completion appointment.
Sign on the documents, hand over the keys and you have completed the resale transaction!
HDB Resale timeline
The chart above summarizes the HDB resale timeline.
The timeline from finding an interested buyer to Hdb completion is usually about 12 weeks
Questions to ask yourself
What is the purpose of selling your flat?
Are you familiar with the latest marketing trends?
Have you work out the pros and cons of buying or selling first?
Do you have a step by step action plan?
Do you know that 73% of homeowners did not prep their house right for selling?
If you are looking to embark on this journey to change up your home to another HDB or upgrading to a private property, I hope this will be a useful guide for you to kick-start your process.
Most of my clients started our long-term professional relationship with just a simple call.
So, let’s speak soon and not close doors on any potential opportunities.
I will provide:
-An IN-DEPTH Financial calculation
-Highly relevant investment insights
-A curated list of the best buys in today’s market with good upside potential and minimal risks
-Proven methods and steps
I have successfully helped hundreds of homeowners just like you since 2010
Have you learned something New Today? Please help to share.
Rick Huang, Associate Deputy Group Director of OrangeTee & Tie, has been in the Real Estate industry for a decade.
He is driven, committed and is enthusiastic about real estate investments.
Today, he leads Team Youhome.sg, and together, he aims to provide his clients with the best experience in their property journey.
The team focuses on understanding the client’s finances and needs and is determined about delivering the best solutions and results for them.
Amidst the hustle and bustle, Rick enjoys quiet time and indulge himself in the intricate art of tea-brewing and teapot appreciation.
He would also take this chance to energize himself and reflect on his personal development and areas of improvement.