The Singapore property market isn’t exactly a bright spot at the moment. Mortgage refinance rates have been fluctuating up and down causing concern with home owners, market is starting to get flooded with lots of new supply as well in 2017. But if you are thinking of selling your property before prices slip further, here’s some useful tips you may want to keep in mind.
The Seller’s Stamp Duty (SSD) was introduced by the Government on 20 Feb 2010 and was further revised on 30 Aug 2010 and 14 October 2011 in order to discourage property speculation. Properties acquired before 20 Feb 2010 will not be subject to SSD.
Currently, the Seller’s Stamp Duty stands at:
• Holding period of up to 1 year : 16% of price or market value, whichever is higher
• Holding period of up to 2 years : 12% of price or market value, whichever is higher
• Holding period of up to 3 years : 8% of price or market value, whichever is higher
• Holding period of up to 4 years : 4% of price or market value, whichever is higher
As you can see, the SSD can eat into your potential gains so you’d need to factor them into your final transaction price. The SSD is only applicable to private residential properties, whereas for HDB you’d need to meet the Minimum Occupation Period(MOP) of 5 years.
You might have bought your property in the last few years where the market was at its peak. With prices currently coming down and expectations of an influx of private property coming up, you’d have to be realistic about your asking price. Many seller advertise their asking price at a higher rate because they want to factor in the possibility of negotiation from the buyer. However, asking for a unrealistically high price will put off potential buyers from even contacting you. What you might want to do is to check out the recent transaction prices so as to have a fair estimate of your property’s valuation. Alternatively, your real estate agent will be able to help you gather such relevant information.
Yes, you do not need to engage an agent to buy or sell your property. But do you really want to go through all the hassle of administrative tasks and paper work and risk missing important legal details as well? A licensed agent will also have access to tools that you do not have, such as using specialised portals to market your property and help you negotiate prices with potential buyers.
You might also want to consider getting an exclusive agent so that he can handle all enquiries instead of having many agents trying to sell your house at the cheapest price possible.
Home-staging may not be a term most people are familliar with but the idea is not new. Home-staging refers to the act of preparing a residential property for sale by making it look more appealing. Some easy ways to do this is to give your place a fresh coat of paint, re-arrange your furniture to give it a more spacious look and mend all leaking ceiling and cracks.
If you are having a hard time finding a buyer and you are unwilling to let go of your property at the market price, you can always consider renting it out. Singapore has a huge rental market due to its large expat community and if you are able to get a reasonable rental yield, it can in fact be a better option to selling your property at a loss.
We hope this 5 tips will be of use for you. If you are not sure, you can reach out to any professional certified real estate agent to provide you with good advise on how to sell your place in a buyers market.