This is an unbiased step-by-step guide on selling a property in Singapore. We do not pretend that this guide is exhaustive, so do your own research on top of reading this.
- PRICING
- Check the last transacted prices
- Calculate a median price per square foot (PSF) over the last 3 to 6 months
- Renovations can bring added value to your property
- Floor Level - high floors can usually be priced slightly higher; low floors, slightly lower
- Floor size: you should know the exact floor size
- Facing: buyers tend to look for North or East facing
- Cleanliness: a clean house cannot be sold for more but it will definitely show its best possible angle
- MARKETING
- Focus on your marketing strategy
If engaging a salesperson - Ask for a track record of past sales
- How long he/she has been in the business
- If he/she can provide references
- What is the average time for him/her to close a deal
- SCREENING
- From all the response to your advertising, you should try to filter the prospects.
- Confirm that your property fits their criteria (number of bedrooms, size, budget).
- When this is confirmed, you can then set up a viewing
- VIEWING
- During the visit, try to understand the prospect's motivation for buying.
- Try to feel what the prospect likes and doesn't like about your property
- We recommend keeping a brief file on each prospect so it's easier to keep track should he/she be interested.
- If you hired a salesperson, you may choose to be present or not during the visits. If you choose to be present, you can gauge how the agent markets the property. If you choose not to be present, you will not hear the negative remarks from buyers and as a result affect your decision
- NEGOTIATION
- You should then re-contact the prospects that you felt were the most interested. Ask them if they are interested and if they have questions for you. Propose a second viewing if they feel the need.
- The rule is: a fairly price property will sell quickly, whereas an over-priced property won't or might not even sell at all.
- If you are engaging a salesperson, leave this portion to the salesperson so that you do not attach any emotional feelings to the property during negotiation process
- OFFER TO PURCHASE / OPTION TO PURCHASE
- When you have agreed on a price with a buyer, the most common practice is to issue an Option to Purchase agreement to the buyer
- After validating the document with your solicitor, you may now submit it to the buyer who will need to pay 1% of the agreed price (max $1,000 for HDB flats) in order to be granted this OTP.
- The buyer should submit the document to his/her solicitor before committing.
- EXERCISING THE OPTION / LEGAL COMPLETION
- Once a buyer has signed the Option to Purchase, you can stop advertising your property.
- The buyer has 14 calendar days to decide if he/she wants to proceed or not with the transaction.
- If he/she does not, you will keep the option fee and you may start advertising your property again.
- If he/she does proceed, then the process varies depending if you are selling a private property or a HDB flat.