Thinking of selling your home is one of the most daunting decisions - but also one of the most financially rewarding decisions you can make in your lifetime. The BTO that you purchased in your 20s might have appreciated by upwards of 30% and the prospect of moving into a larger home or a condo to support your existing or to-be family might be coaxing you into making the leap of faith to do so.
There are a few main steps in selling your property. That includes
Paperwork and closure of sale
Decide on your asking price.
Prior to initiating any efforts to sell your property, it's essential to determine your initial asking price. Since potential buyers often engage in negotiation, having a clear understanding of the minimum price you're willing to consider is crucial.
Furthermore, if you're not in a rush to sell and prefer to wait for a better offer, you should carefully contemplate the price you intend to list your property at. Conducting thorough research on the prices of comparable properties in your locality - such as using MOGUL.sg’s data insights tool can aid you in establishing an amount that you are satisfied with.
Find a suitable agent
After determining your desired selling price, it's time to begin the process of selling your property. For many sellers, the initial step involves reaching out to a real estate agent.
The real estate agent can manage the administrative tasks associated with the sale, which include creating property listings to attract potential buyers, communicating with prospective buyers, and arranging property viewings. They are also responsible for administering the paperwork towards the tail end of the transaction.
Staging your home and hosting viewings
Once you've enlisted the services of a real estate agent to sell your property, you can anticipate receiving inquiries from potential buyers very soon. Before their visits, you might want to engage in some home staging, which involves preparing your property for sale to make it more appealing to potential buyers. At a fundamental level, this involves tidying up and decluttering your space.
For a full home staging guide, check out our related article here.
At this stage, you can expect your agent to coordinate home viewing sessions with potential buyers - be prepared to welcome your guests warmly and answer frequently asked questions with your agent.
Negotiating the price
Expect potential buyers to attempt negotiations regarding the listed price of the property. Ensure that you're ready to engage in discussions with a clear understanding of your minimum acceptable price.
Once you and the buyer have agreed upon a price that satisfies both parties, it's time for both sides to formalise the sale and purchase agreement, and be ready to draft up an Option To Purchase for the buyer.
Hire a conveyancing lawyer
At this stage, you will need to hire a conveyancing lawyer to act for you in the sale.
You can choose to hire a lawyer from a private law firm, or look to hire a lawyer from HDB if you are selling your HDB flat. Ensure that you have made the correct arrangements for the legal proceedings to take place smoothly.
Issue an Option To Purchase (OTP)
In most cases, serious buyers would like you to issue them an Option To Purchase (OTP) in exchange for an option fee. This option fee is typically 1% of the agreed sale price, although the figure can be negotiated between parties.
This is typically done by an agent or a lawyer, as the OTP is a legally binding agreement.
During this option period (typically 21 days), you are not allowed to entertain offers from other buyers while the buyer looks to settle his administrative tasks such as taking out a mortgage loan. When the buyer is ready, they will then exercise their option to purchase the property, finalising the sale.
Finalising your sale and moving out
From this point onward, your attorney will be responsible for overseeing the transaction on your behalf. They will guide you on the necessary documents to sign and provide information on required payments, among other details.
Additionally, your lawyer will outline a timeline for you, specifying the date of completion, which marks the day when the keys will be handed over to the buyer.
In the meantime, it's advisable to start preparing for your move before the handover date. This includes packing your belongings and furniture and organising transportation to your new residence. Starting this process early will give you ample time to sell any unwanted items in the second-hand market and arrange for the transportation of your possessions.
A new way to sell your home
With MOGUL.sg’s Sell@MOGUL program, you are able to go through the sale process not only faster, but at a much more affordable price. With our technology enabled sale process, you can list your property and find interested buyers much faster than before, as well as enjoy the full benefits of an agent enabled service while paying 0% commission. Learn more here.