Selling a property is usually a very tricky process, even without Singapore’s challenged economy and real estate outlook. Thankfully, there are some concrete steps that can be followed in ensuring a successful property deal. Check out the following tips:
- Pricing. This is one of the most sensitive parts of the process. Even before putting up the “for sale” marker, make sure you check the last transacted prices in your area. This can be easily seen through the Housing and Development Board (HDB) website. If you are selling a private apartment, check out the website of the Urban Redevelopment Authority (URA).
Once you have the base price for the property, look at the things that can bring value to your property. This includes renovations and other additions. Note that if you are selling an HDB flat, illegal renovations have to be removed first before the transaction is approved. If you are selling condos near the MRT, these will fetch higher prices because of their proximity to transport routes. If you are selling a flat in a high floor, this will also entitle you to a higher market price. You can also count the furniture, and the overall condition of the property.
- Marketing. If you are marketing through an agent, make sure you interview that agent thoroughly. Check how long they have been in the business, and browse through their portfolio. Check with their previous customers, when possible. You have to know as well how many other clients an agent has as of the moment, to make sure he/she devotes enough time to your property. Clarify the fees, too. Often, agents take as much as 2-3% of the final sale. Remember that Singaporean law does not mention a ceiling for commissions, so clear this up as early as possible.
- Screening buyers. Filtering prospective buyers can be tricky as well. Talk to them and make sure that your property fits the criteria they are looking for. Once this is done, you can set them for viewing. Agents can typically do the screening better, that is one advantage.
- Hosting Visits. When meeting prospective buyers during visits, make sure to understand their reasons for buying. If they’re buying for themselves or for their family, they may nitpick on the small items. If they are investors, they may be more likely to overlook the little details. If a buyer is an expat, he/she might be primarily concerned about the price — banks can only loan up to 80% of the sale price to non-Singaporeans.
During visits, resale value is an important thing to talk about — especially if your prospective buyer is an investor. After the visit, jot down its events and keep it as a file should you have to choose among multiple prospects later on.
- Negotiation and Sale. The last parts are usually the most tedious, especially when you have to negotiate the sale price. Be open to lowering your price a bit, but not enough that you lose your profit. Always check if the other party’s points are relevant, and respond accordingly.
Selling a property in Singapore is aided by the proper legal framework, but you have to do most of the legwork yourself. Just be sure to follow the tips here, and your selling experience should be smooth sailing.