Selling Procedures (Private)
For whatever reason you are selling your property; from outgrowing your home and need more space for your family to cashing out from a successful real estate investment, lets' go through the procedures and process.
Let run you through all the requirements, from the very start of understanding finances to the completion of the sale.
Knowing The Finances
Calculation of sale proceeds. Will the sales be a nett negative sales. Know the proceeds after sales will also let you plan your options if you plan to purchase another unit.
The breakdown will mainly be a few components mainly:
Sales Prices, Outstanding Loan, SSD, CPF + AI refund & other transaction related fees.
Know The After Sales Plan
Know where you will be moving to after selling. Purchase a new place? Another investment unit?
Draft The Overall Timeline
With step 2 & 3 known, we will be able to work out a timeline for the move. Whether we need extension and also we can plan when to purchase and commit to the new property.
Price Analysis & Setting of Price
Reference to the ever changing real estate market, we will come out with a pricing for your property. You may find our the estimated value of your property now using Home Value Report.
Issue Option To Purchase (OTP)
Once you’ve found a buyer, you can issue them the OTP. The 1% option will be paid out by the purchaser in exchange for the OTP.
Exercising Of OTP
The buyer have 14 days to excerise (Open for negotiations). To exercise the OTP, they will find a conveyancing lawyer and pay the 4% exercise fees.
Pay Seller Stamp Duties (If Required)
If your sales in done within 3 years from purchase, you will be liable to pay the SSD.
Pre Completion Inspection
Nearing the completion date, the new buyers will inspect the unit before the final completion. This is to ensure that there is no changes to the items agreed upon and you have moved out.
It will be good to terminate any GIRO payment made to the property. Also clear off any outstanding MCST charges and property taxed payment to ensure that the completion is a smooth one.
Finally to the big day.
Head down to the lawyer firm to complete the transaction.