Thinking of selling your HDB flat? Before you proceed to hang the figurative ‘For Sale’ sign at your front door or start marketing your flat on Ohmyhome, here are a few important things every home seller should consider to get properly ready for the selling process.
1. Minimum Occupation Period (MOP)
Has your flat fulfilled its MOP? In most cases, you are only allowed to sell your flat if you’ve physically occupied your flat for at least five years but it could vary depending on your flat type. Some flats, such as those bought under the Fresh Start Housing Scheme, has an MOP of 20 years. To be on the safe side, you can check your flat’s MOP on the HDB website.
2. Ethnic Integration Policy (EIP)
Every HDB block in every neighbourhood has an Ethnic Integration Policy (otherwise known as the Ethnic Quota) and Singapore Permanent Residents (SPR) quota. It lets you know who is eligible to buy your flat. This information will be made available to you once you’ve registered your Intent to Sell on the HDB Resale Portal. Some ethnic restrictions could pose a challenge when selling your flat, which means it might take longer.
3. Seller Stamp Duty (SSD)
Most sellers are liable to pay SSD. The SSD rate is dependent on the date of purchase and the length of time you’ve owned the property. These two factors can make all the difference. For instance, if you were to buy your flat between 20 February 2010 and 29 August 2010, and have held it for longer than a year, you need not pay SSD. You may refer to a more detailed breakdown of the rates here.
To put it simply, the shorter the holding period, the higher your SSD rate. Most HDB flats require at least 3 years holding period to avoid any SSD.
4. Resale Levy and Upgrading Levy
Planning to buy another flat after selling your current HDB? If you are a second time home buyer, be sure to check if you’re liable to pay any resale levy and/or upgrading levy. If you’re eligible for the levy, you’ll know of the amount payable at the stage where you’ve booked your second subsidised flat. The levy can be paid via your sale proceeds and/or cash.
5. Solid Relocation Plan
We couldn’t emphasize this more, having a new place to stay is the utmost importance before selling your home. Hence, you cannot sell your flat too early else you and your family end up homeless. You cannot also start selling too late, or else you would need to apply for a Temporary Extension of Stay.
Keep in mind these 5 considerations to start your selling journey right. After ticking these 5 things from your list, you’re all set to start posting your listing on Ohmyhome where the real fun begins!
Eligible to sell your flat? If DIY is not your cup of tea, don’t worry. Our agent services got you covered! Call 6886 9009 to learn more.