Last Updated on June 22, 2024 by Editorial Team
Selling a condo unit requires meticulous planning and strategic execution. Especially when such a sale usually involves a 7- or 8-digit price tag, there is simply no reason not to get serious about every step of the transaction. Truth be told, selling a private property in Singapore is really not that difficult. If you are planning to sell your condo but not sure how to go about it, here’s a step-by-step guide that may be useful to you.
A 10-Step Guide to Selling Your Condo
Step 1 – Check Payable Seller’s Stamp Duty (SSD)
While you are eligible to sell your condo any time after acquiring it, you’re liable to pay Seller Stamp Duty (SSD) if the unit is sold within 3 years from your purchase date. The SSD ranges between 4% and 12%, which means an additional cost of S$10,000 to S$120,000 for a million-dollar condo.
Unless the sale of your condo promises a very high profit that is enough to cover the SSD, it will make more financial sense to hold your property for at least 3 years to avoid paying the extra costs.
The chargeable SSD rates are:
|
Holding Period |
SSD Rates* |
|
Up to 1 year |
12% |
|
More than 1 year and up to 2 years |
8% |
|
More than 2 years and up to 3 years |
4% |
|
More than 3 years |
No SSD payable |
* SSD rates applicable for condo purchased on and after 11 Mar 2017
Step 2 – Conduct Market Research To Determine Selling Price
One of the easiest methods to determine your selling price is to conduct an online market research on recent transacted prices of other condos in your area. This will give you a realistic price range and keep your condo unit competitive when you put it out in the market for sale.
Alternatively, engaging condo agents who specialise in selling private properties may also offer tremendous insights. Experienced agents who are well-versed with market trends and know how to use comparative market analysis (CMA) can help you determine your condo’s market value more accurately.
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Step 3 – Calculate Your Finances and Set Your Timeline
Depending on your end goal for selling your condo, you may have to factor in different cost considerations and time planning. For example, if you are looking to sell your property and upgrade or downgrade to another place, you may have to be mindful of the rental cost you may have to incur before you acquire the new home. This also means you must align the timeline for receiving the sales proceeds (and CPF reimbursements) and payment dates for your next property, if both transactions are done back-to-back.
A common mistake that sellers make is overlooking the fact that proceeds from their condo sale also go into repaying the outstanding home loan. Such miscalculation could result in serious shortage of cash to cover for the down payment of their new property purchase.
Step 4 – Appoint Condo Selling Agent
Hiring professional condo agents with expertise in selling private properties can relieve you from a myriad of chores such as marketing, cumbersome paperwork, conducting viewings and tracking the timeline of both seller and buyer till final sale completion. Especially if you don’t have time on hand to manage your transaction, these agents are faithful pairs of hands that will help you successfully sell your property with minimum participation from you.
There is no running away from hiring a conveyancing lawyer when transacting a property in Singapore. Your appointed lawyer ensures the transference of your property to the buyer is done legally and compliant to all governing authorities. The service also covers all necessary paperwork and communicating with the relevant parties including the bank, the buyer and the buyer’s lawyers.
Of course, these expert services come with a cost. Typically, agent commission fees range between 2% and 4% of the property selling price. Conveyancing fees are around S$1,300 to S$3,000 for a condo transaction.
Step 5 – Market Your Property
Once you are clear about the finances and timeline, the next step involves creative touch-ups that help you showcase your condo to the world in the best light. This can mean anything from sprucing your place up for photo shoots to developing an ad with informative marketing copies and high-quality photos.
Be sure to list your ad in popular property portals such as Propertyguru, 99.co, SRX and iProperty. These are some of the key platforms that buyers tend to visit for property listing.
Step 6 – Prepare Your Condo for Viewing
The first impression counts. Even though there is no need to refurbish your condo with the latest interior designs, the least you can do is to keep it clean, cool and well-lit when potential buyers arrive for viewing.
Don’t overlook the power of minor repairs like replacing a flickering bulb, tightening loose hinges or fixing a broken glass panel. These small fixes around the living spaces can rejuvenate the interior and help potential buyers see the true potential of the property.
Step 7 – Issue the Option to Purchase (OTP) and Collect Option Fee
Receive an irresistible offer? Congratulations!
This is when you or your condo selling agent can issue the Option To Purchase (OTP) with information such as the condo address, agreed purchase price and the 14-day Option Period in which the buyer must exercise the option.
Once you issue the OTP to the buyer, you can collect a 1% Option Fee from your buyer as an indicative offer to lock in the deal. From this point, you cannot issue another OTP to other prospective buyers.
It is not uncommon for buyers and sellers to negotiate a longer Option Period or higher Option Fee. The final terms in the OTP can be amended as long as there is a consensual agreement.
Step 8 – Wait for the Buyer to Exercise OTP
The buyer should take no more than 14 days to exercise the OTP. By exercising the OTP, the buyer indicates the final decision to move forward with buying your condo and pays the balance deposit.
Once it is exercised, the buyer must provide another 4% of the purchase price as the Exercise of Option Fee. From here on, you can let your conveyancing lawyer take care of the rest of the legalities.
Step 9 – Pay Necessary Seller’s Stamp Duty
If you are selling your condo within 3 years of purchasing it, you are liable to a Seller’s Stamp Duty (as indicated in Step 1) to IRAS within 14 days from the day when the buyer exercises the OTP. You can pay your SSD via IRAS e-Stamping Portal. There is no need to pay SSD if you owned the condo for over 3 years.
Step 10 – Complete the Sale With a Final Inspection
From the time the OTP is exercised to the final hand-over day, you are obligated to maintain the property in the same condition. Invite the buyer over to conduct a final inspection to confirm vacant possession before the completion date or once you have moved out.
Finally, hand your keys to your conveyancing lawyer for on-ward forwarding to the new owners. Congratulations! You’ve finally completed the sale of your condo!
Frequently Asked Questions
The minimum period to sell a condo is 2 months. But the more realistic condo selling timeline is about 5 months.
The cash proceeds will be paid to the sellers on the same day as the official legal completion date. The CPF refund will be reimbursed to the seller’s Ordinary Account within 14 days after the completion date.
The fees you may incur for selling a condo includes:
- Outstanding home loan
- Legal fees
- Property agent commission
- CPF savings and accrued interest
- Seller’s Stamp Duty (SSD) (if applicable)
- Property tax
- Maintenance fee
You are liable to pay SSD only if you sell your condo within 3 years from your purchase date.
The chargeable SSD rates are:
Holding Period | SSD Rates* |
Up to 1 year | 12% |
More than 1 year and up to 2 years | 8% |
More than 2 years and up to 3 years | 4% |
More than 3 years | No SSD payable |
* SSD rates applicable for condo purchased on and after 11 Mar 2017
You can sell your condo any time after exercising the OTP. However, you’ll be liable to SSD if you decide to sell it within 3 years from your purchase date.