Selling your HDB flat is a major milestone on your homeownership journey. If you are even considering this decision, then congratulations! You’ve come a long way since the early days of collecting your first keys and moving into your first home.
But make no mistake, the decision to sell your flat is not one to be taken lightly. If you want to sell your HDB flat with confidence, then read on. We’ll give you the lowdown on what you need to prepare before you hit submit on your Intent to Sell application.
1. What is the motivation behind your sale?
Understanding your motivations behind your sale will help you zero in on what to look out for when choosing your next abode. For a majority of cases, homeowners choose to move away for one or more following reasons:
Location: People might wish to live closer to work, relatives and facilities or get away from something unpleasant at their current location! For parents with school-going children, living within a 1km radius of their primary school of choice also gives priority standing in primary school registration.
Space: A oft-forgotten commodity that receives attention whenever an additional family member (spouse, child, relatives, or even a close family friend) joins the nest.
Profit: It’s common for Singaporeans to sell their HDB and channel those proceeds into their next home purchase, be it a condo or a flat.
Most homes won’t tick every single one of your boxes. So jotting down your reasons for moving and ranking them accordingly is a great way to prioritise and differentiate between needs and wants.
Also, having these details down in pen and paper ensures that you don’t miss out any details when communicating with your property agent. That way, you can be fully aligned with them and give yourself the best chance of getting the home of your dreams.
2. Conduct market research for HDB flat valuation
Knowing the approximate value of your home will give you a clearer picture of how to price your home, your sale proceeds and your budget for your new home. This can be done quickly and easily on Ohmyhome. You can get a free home e-Valuation report by keying in your address or postal code here. Our algorithm runs through real-time big data from trusted sources to grant your home a valuation estimate based on factors such as location, size, and floor, among others.
Another factor that can greatly influence your home’s value is the remaining lease. According to Ohmyhome’s Property Agents, HDB flats sold within five to ten years of lease commencement have the best chance of being profitable. While there are exceptions, houses with longer balance leases generally fetch higher prices.
Homeowners of flats with shorter remaining leases should consider whether they have enough savings to cushion them from financial loss. While schemes such as the Selective En bloc Redevelopment Scheme do provide homeowners moving subsidies and a fresh lease, former National Development Minister Lawrence Wong has also stressed that only a minority of flat owners will receive these benefits.
Besides financial planning, knowing your block’s EIP and SPR status will give you an idea of your selling timeline. Homeowners living in blocks with maxed out EIP or SPR quotas might need a couple more months to find a matching buyer, simply because their pool of eligible buyers will be smaller.
3. Understand how floor level can affect the flat’s price
While not always a major determining factor, floor levels have been known to significantly affect floor prices. For example, let’s take a look at some recent transactions within the Ang Mo Kio HDB Town.
From the table above, we can see that the difference between two similar 3-room units in Block 502 transacted in Jan 2021 was $38,000, with the only difference being that one was located between storeys 1 to 3, while the other was located between storeys 7 to 9.
Of course, recent fluctuations in the economy over the past two years have driven up prices. As we can see, prices of 3-room units in the same block have reached the low-to-mid $300,000 range from Q3 2021 onwards.
However, the most recent transactions for 3-room units in Block 418 still show a price difference of $48,000 between similar units. In fact, the price effect is even more pronounced with this pair of units, as the floor difference this time is not as significant.
High-floor units tend to benefit from better ventilation and higher vantage points that provide fresh air and better sceneries. They also are less susceptible to floods and less prone to pests. It is important to note, however, that units on the 10th to 15th floors may experience noise pollution if they are facing an expressway since noise can also travel upwards.
On the flip side, residents of low-floor units gain better access to facilities such as playgrounds, gardens and hawker centres. Plus, those who live on the lowest floor might even gain access to complimentary outdoor space. Such units are suited for families with children or pets that need more outdoor time under close supervision.
Of course, high-floor units do not automatically give you the upper hand. It all boils down to the combination of factors between location, size, condition, remaining lease, and more. But that’s also why engaging a property agent who knows how to upsell your home can make a huge difference in your HDB selling journey.
4. Prepare for home viewing with minor interior repairs
Disclaimer: We strongly discourage you from renovating your home just to secure a higher resale price. This is because you will likely spend more than what you will earn from the price markup.
That said, it’s still undeniable that glaring blemishes can turn off homebuyers and drive your price to the ground. After all, nobody wants to live in a home with warped wooden tiles or leaky pipes.
There are, however, DIY fixes that can make your home look a lot more inviting at a lower cost. For example, if you tend to have a lot of clutter lying around, now would be a good time to do some major spring cleaning. Might as well get a headstart, since you’ll have to pack up when you move away eventually. Who knows, you might discover a home that shocks even yourself when you clear away the paraphernalia you’ve accumulated over the years.
Also, don’t be afraid to get your hands dirty scrubbing your kitchen and toilet. The last thing you want is for your visitors to touch a grimy kitchen counter or spot mould growing around your sink. Use the chance to thank your home for serving you all this while, and give it all the love and attention in this final scrub down.
Finally, a little bit of paint goes a long way. Use it to cover up any scratches, discolouration and stains while breathing new life into your home. In terms of colour, choose something light and neutral that doesn’t compete for attention. This will give buyers a ‘fresh canvas’ that they can do whatever they want with, instead of something that may clash with their personal tastes.
5. List your home DIY or have a top-rated Super Agent by your side
When you’re ready, you can list your home on Ohmyhome’s comprehensive DIY platform (available on App Store and Google Play) that provides home sellers with all the tools they need to perform a home transaction on their own. There are no hidden fees with Ohmyhome listings. Pay for exactly what you get, after transactions have been completed.
But if you would like someone to take all the bothersome admin work out of your hands, Ohmyhome’s Super Agents are more than ready to help you. Our team of CEA-certified agents rank amongst the Top 1% in Singapore and have helped 70% of our clients sell their homes above market valuation in double-quick time. Sell with us for a higher profit and to avoid additional levies on your second property. Because at Ohmyhome, we’re always by your side, always on your side.
Call 6886 9009 to book an appointment with our Super Agents or message us with your enquiries via the chat box at the bottom right-hand corner of the screen. If you’re on the go, we’re also available on WhatsApp at 9755 1009. See you soon!