Written by: Benjienen Toledo
What is Do-it-yourself (DIY) HDB resale transactions?
It is transacting your HDB homes either buying, selling or renting without engaging a property agent. In 2010, there were only 11% DIY resale transactions, then we see rising numbers of DIY resale transactions and it continues to increase with the use of technology in the resale process.
As reported in 2017, Ohmyhome sets a stunning new record for Do-It-Yourself property transactions when an HDB flat seller successfully secured a buyer just two days after listing, with the buyer signing off on the Option to Purchase (OTP). Not only is this believed to be the platform’s quickest deal to date, it is considered a quick deal in general. A property typically takes close to three months on average to find a buyer.
So, what are the advantages when you transact your HDB through Ohmyhome app, without an agent?
Helps you Save Thousands, Costs you Nothing
Every year, at least $200 million is spent in commission fees when people enlist agents to help them sell or rent. This is money that could be saved. Ohmyhome founders Rhonda Wong and Race Wong believe that the reason why so much is spent in commission fees is that people do not have enough information and are not sure how to handle the transaction. This is the gap that Ohmyhome is continuously bridging.
The Straits Times (2016) says that those who take the DIY route would save on the agent’s commission – usually around 1 percent of the transaction price for buyers and 2 percent for sellers.
Puts You in Control of the Fate of Your Home
With Ohmyhome app, Singaporeans have the power to take charge of their property transactions. Our CEO Rhonda said; “What could be more important than one’s own home? Wouldn’t it be good to be able to make decisions by yourself, without relying on others?”
With the DIY App, buyers and sellers can do their own paperwork and attend HDB appointments to transact without an agent. People spend because they lack the confidence that they can do it, all by themselves.
Ohmyhome’s unique app feature Journey provides a step-by-step guide to homeowners and home searches to get started in their housing transaction. Thus, instead of spending, in-app guides and customised tips help the users make informed decisions in one of the major milestones of their lives.
HDB also has online guides for buyers and sellers, and it holds DIY resale seminars for the public, too. Each seminar has a maximum capacity of 100. The monthly English seminars are usually full, while the quarterly Mandarin sessions attract 60 to 80 participants.
Saves you Time in Marketing, Communicating and Viewings
As a homeowner, this DIY app saves you time because it serves as a one-stop platform for you to advertise your property, chat with potential buyers directly, schedule an open house and accept offers on the go. You may post your property for sale in less than 3 minutes!
Open House allows you to key in your preferred open house date and time, then the app will notify other users. Prospective buyers and tenants can then request to attend it. With an open house, owners will need to clean up only once to welcome a group of viewers, feel more relaxed and casual as compared to a one-to-one viewing.
For buyers and tenants, this open house feature is a better way for you to attend to home viewings. You may just show up at the properties on the specified dates and times and view it to your heart’s pleasure! Another helpful feature that saves your time is the ShoutOut‚Ñ¢, this reverses the home searching behaviour, now you can post your requirements in the app and the homeowners will find you directly.
Ohmyhome also has an Affordability Calculator so you can find out ahead of time if a property will fit your budget. There is also a Sales Proceeds Calculator to help you find out how much money is left after you have sold your property, is it enough to purchase your next resale home? With these handy tools, you don’t spend time viewing properties that are out of your budget and help you plan your finances efficiently.
Learn more about DIY:
National Development Minister Lawrence Wong highlighted that since 2013, about one of four HDB buyers each year has transacted without a property agent. A Council for Estate Agencies (CEA) survey in 2016 on 2,113 people revealed that those aged 21 to 39 years old were more likely to handle transactions on their own.
In Q1 2016, out of 3,860 buyers and sellers, 23% have chosen not to engage a property agent (The Straits Times, 2016). The Housing Board further shares that there were 28% of DIY resale transactions in 2017.
Within seven years, the DIY resale transactions increased by 17%, perhaps our tech-savvy homeowners and searchers have seen the advantages of the DIY transactions and are now more informed in property transactions.
The Housing Board said that despite quickening the HDB resale process, there is no change to the role of real estate agents, flat sellers and buyers can continue to engage the services of estate agents to advise and assist them with their transactions if they wish to do so.