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How To Choose a Property Agent To Sell Your Home
Selecting the ideal real estate professional for selling your home is about building strong connections and tapping into an incredible network of potential buyers.
This year will be a good time for buyers to enter the market, as the market shift will realign buyer and seller expectations. Working with the right listing agent will become even more important in the coming year. Even the best Singapore homes will struggle to sell if they aren’t priced properly or if the negotiations are handled poorly.
“The first step is understanding the seller’s goal,’’ says Gill, cofounder of Singapore Luxury Homes (SLH). She recently sold The Ladyhill, a 2,422 square foot 3-bedroom, 3-bath property in District 10, above the asking price. “We then personalise the marketing of your property, targeting serious buyers within our extensive network.”
At SLH, our forte accentuates your property’s distinct benefits to our select clientele and an extensive network of buyers and brokers. Being among the top 1% in the real estate sector, our track record of successfully concluding hundreds of transactions, backed by a network of over 11,000 real estate professionals, has equipped us with priceless insights that work for you.
SLH’s guide to selling your home in Singapore simplifies the property sales process into straightforward steps, alongside answers to frequently asked questions and tips for selling your home.
I'm Looking to Sell My Home
Be Transparent with Your Property Team
Being transparent with your real estate agent is key to a successful home sale. It’s not like a poker game where you hold your cards close. Openness enables your agent to fully understand your needs and goals, allowing them to strategize precisely on your behalf.
Open communication ensures that your agents fully understand your objectives, preferences and constraints, enabling them to adapt their strategy according to your ultimate goal. Here’s why transparency is paramount and how it can address various issues to help real estate agents know you better and align with your goals.
1. Understanding Your Timeline
Whether planning to sell your home fast or just starting to think about selling your home, sharing your timeline is crucial. If your decision to sell is influenced by an immediate need to purchase another property or for cash flow needs, communicate these timing considerations to your agent. Understanding whether you’re under a tight deadline or have the flexibility to wait for the perfect offer can significantly influence your agent’s approach. They can then prioritise quick selling strategies or suggest temporary solutions like renting out the property if the market conditions are unfavourable for hitting your target price.
2. Pricing Your Home
Share your expectations regarding the selling price based on your understanding of the market and your home’s value. An open dialogue about your bottom line allows your agent to help you set a realistic price that aligns with market conditions while striving to meet your financial goals. This discussion should also cover flexibility in your asking price to accommodate negotiation strategies. Our team attains a minimum of 3 bank valuations on your behalf to support the asking price.
3. Costs of Selling
Be upfront about your budget for the costs associated with selling your home. This includes real estate agent commissions, closing costs, and any potential repairs or improvements you want to make before listing. A transparent discussion about these expenses helps your agent advise on the most cost-effective strategies to enhance your home’s appeal without unnecessary spending.
4. Home Maintenance and Repairs
Discuss any ongoing maintenance issues or repairs that need to be made with your agent. If there are significant problems that you need help to address before selling, your agent can help with their vast network of contractors. This information is critical for setting the right price, negotiating with buyers and managing expectations during the sale process so that the deal doesn’t fall through at the last minute.
5. Property Taxes and Outstanding Mortgages
Provide details about any outstanding mortgage balances and property taxes, as these will affect the net proceeds from your sale. Understanding your obligations will help your agent navigate closing costs and ensure the sale meets your financial needs.
6. Investment Recovery
If the property was an investment, discuss your expectations for recovering your investment or achieving a specific return. This can influence how aggressively the property is priced and marketed and what kind of buyers your agent targets.
7. Concerns and Deal-Breakers
For sellers, it’s imperative to communicate any concerns or non-negotiable elements related to the sale of your property. This openness can significantly streamline the process, eliminating potential setbacks.
Whether it’s a minimum sale price you’re unwilling to go below, a tight timeline that necessitates a quick sale or specific terms you require in a deal (such as a leaseback agreement to allow you time to find a new home), disclosing these factors upfront gives your property advisor the information they need to navigate negotiations effectively.
At Singapore Luxury Homes, we deeply understand the importance of your decision to engage us, viewing it as a commitment of your dreams and financial future into our hands. Our role extends beyond mere facilitators of a real estate transaction but as strategic partners in achieving your life’s aspirations. Our methods are professional and personalised, designed to fit your specific situation, guaranteeing a property journey that succeeds and complements your broader financial and lifestyle plans.
Most Frequently Asked Questions We Get from Home Sellers
What is the estimated selling price of my property?
Various factors influence the selling price of a house, with one of them being correct market pricing. An accurately priced home is sellable, while overpricing due to an unrealistic valuation or misunderstanding market data can hinder the selling process. Availability for showings and effective marketing, including high-quality online listings, are also essential. Other factors, such as addressing minor but significant repair issues and home staging, can further attract buyers and facilitate a sale.
As property advisors, it’s our duty to help educate our clients with our deep knowledge of the market about current factors that impact property sales and list their homes accordingly.
We will cover everything from how our agents compare your property with similar ones in the area to determine a competitive selling price to the marketing strategy and advice on preparing your home for sale. Additionally, we provide a network of partners, from accounting to legal professionals, to support you during the negotiation process, ensuring the best possible terms and assistance throughout the closing process for a seamless transaction.
How long will it take to sell my property?
The absolute minimum time required to sell a home is approximately 12 weeks. However, this timeline can vary based on market conditions, negotiation processes and legal requirements. Selling a private property in Singapore involves several steps, starting with deciding on an asking price by comparing similar properties and considering factors like age, condition and location.
What are the fees and costs associated with selling my property?
Selling your property in Singapore involves several fees and costs that need to be considered. Below is a breakdown:
- Agent commissions for private properties are typically 3 to 4% of the sale price.
- Legal fees encompass conveyancing fees, which cover the legal work associated with the sale, including contract preparation, title checks, and transfer. These costs can vary based on the transaction’s complexity and the lawyer’s experience, with an expectation of $2,500 to $4,000 for private properties. Additionally, caveat fees for registering an interest in the property (usually the buyer’s caveat) are around $200.
- Government fees, such as the Buyer’s Stamp Duty (BSD) and Additional Buyer’s Stamp Duty (ABSD), are paid by the buyer and do not directly impact you as the seller. However, these fees may be relevant during pricing negotiations. For more information, consider reading our article about ABSD.
- Other potential costs include a mortgage discharge fee ranging from $200 to $500 if there is an outstanding mortgage. For those who used CPF savings to purchase the property, a fee of 1.5% applies when withdrawing these funds. Depending on the condition of your property, pre-sale improvements might also be necessary.
These figures are estimates, and specific costs can vary depending on your property type, sale price, chosen professionals, and individual circumstances. For personalised advice, consult a real estate professional like Singapore Luxury Homes. Our team, part of an extensive network of professionals, is dedicated to making your home sale as seamless as possible.
How can I effectively sell my home?
The visibility in both public and private sales channels are important. While listing your home on property sites is a common approach, it’s crucial to understand that many transactions occur off-market. These unlisted homes often change hands through private networks.
By working with an agent with an extensive and diverse network, you gain access to a market segment that goes beyond what’s publicly advertised. This means your home can be presented to a select group of serious buyers, offering a discreet and often more efficient sales process. Leveraging this dual approach expands your reach and increases the chances of a successful sale.
What is the process of closing on the sale of my property?
The closing process for selling your property in Singapore encompasses several crucial stages:
- Verbal and Formal Offers: Buyers may submit verbal or formal offers after property viewings. This stage allows you to negotiate terms and consider multiple offers.
- Option to Purchase (OTP): Upon reaching an agreement, the buyer pays an option fee (typically 1% of the purchase price), essentially a period of exclusivity. This cooling-off period lasts 14 days, during which the buyer can withdraw their offer. You retain the 1% fee.
- Exercising the OTP. When a buyer meets the conditions of the sale and pays the additional 4% of the purchase price within the stipulated timeframe, the OTP becomes a confirmed sale. With this action, it also allows you, the seller, to purchase another property without the need to pay the additional 20% Buyer’s Stamp Duty (as of the time of the writing of this article) typically required for second home ownership.
- Sale and Purchase Agreement (SPA): A legally binding agreement detailing the terms and conditions of the sale is signed by both parties.
- Conveyancing: This phase involves legal professionals handling the necessary paperwork, legal processes, and the transfer of the title.
- Completion: The final stage includes the payment of the buyer’s remaining balance (20% of the purchase price), followed by any mortgage loan contributions towards the full purchase price if not a cash sale. Property ownership is officially transferred, and keys are handed over. This final step typically occurs 8 to 10 weeks after the option to purchase is exercised.
Is the current market a good time to sell?
Determining the right time to sell depends on various market conditions and trends. Singapore Luxury Homes offers comprehensive insights into the latest market trends, real estate investment news, and property intelligence. Explore our insights
What are the current Additional Buyer's Stamp Duty (ABSD) rates?
As of 27 April 2023, the Additional Buyer’s Stamp Duty are as follows:
Profile of Buyer | ABSD Rates from 16 Dec 2021 to 26 Apr 2023 | ABSD Rates on or after 27 Apr 2023 |
Singapore Citizens (SC) buying first residential property | Not applicable | Not applicable |
SC buying second residential property | 17% | 20% |
SC buying third and subsequent residential property | 25% | 30% |
Singapore Permanent Residents (SPR) buying first residential property | 5% | 5% |
SPR buying second residential property | 25% | 30% |
SPR buying third and subsequent residential property | 30% | 35% |
Foreigners (FR) buying any residential property | 30% | 60% |
Entities buying any residential property | 35% | 65% |
Housing Developers buying any residential property | 35% (Plus Additional 5%, non-remittable) | 35% (Plus Additional 5%, non-remittable) |
Source: Internal Revenue Authority Singapore updated 27 Apr 2023
If you’re a foreign buyer, read our recent article, “Additional Buyer’s Stamp Duty (ABSD) Remissions & Exemptions for Foreign Investors”.
What repairs or renovations should I do before selling to increase the value?
Before listing your property, address functional or safety concerns, such as leaky faucets, faulty electrical wiring or damaged roofing. Also, remove visible cosmetic flaws, including peeling paint, cracked tiles, or outdated door handles, to enhance the property’s appeal.
However, avoid engaging in trendy or highly personal renovations that may not appeal to a broader market. Investments in costly additions, such as a kitchen or bathroom renovation, should be made with a clear understanding of demand, ensuring a positive return on investment. As for major structural modifications, it’s generally best to leave these decisions to the prospective buyer unless such changes significantly enhance the property’s market value.
Should I stage my property to make it more appealing to buyers?
Effective staging transforms your property into a buyer’s dream home, potentially accelerating the sale and increasing the selling price. We’re here to guide you through weighing the costs against the benefits, helping you create a staging design strategy that aligns perfectly with your objectives. Dive into the “Experiencing a Lifestyle” section below to discover the role staging plays in selling — and increasing the sales price — of your home.
Will SLH be conducting open houses for my property?
Open houses can be an effective strategy, attracting diverse potential buyers interested in viewing your property during a designated time frame. However, this broad exposure may not be the most effective for luxury properties as it only sometimes guarantees attracting the right audience. Engaging with a knowledgeable real estate professional can be highly beneficial in this context, as they can tap into their network to connect qualified buyers through a more personalised and targeted approach.
Do I need to pay Capital Gains Tax (CGT)?
In most cases, you don’t need to pay a Capital Gains Tax in Singapore when selling private residential property you’ve owned it for more than four years. This is a significant advantage compared to other countries where property sales often incur CGT.
However, there are a few key exceptions to be aware of:
- Trading in properties: If you regularly buy and sell properties to make a profit, the profits might be considered trading income rather than capital gains. This income becomes taxable under Singapore’s income tax regime.
- Short-term ownership: If you sell a property within four years of purchase, any profits might be deemed trading income and, therefore, taxable. This anti-avoidance measure discourages speculative property flipping
- Foreign entities and controlled companies: Foreign entities and certain controlled companies might face taxation on property sale profits, even if individuals wouldn’t.
- Foreign sellers: There may be additional tax implications in your home country.
Additional points to consider include that even if you’re exempt from CGT, you might still need to pay Seller’s Stamp Duty (SSD) based on your holding period for the property. This is different from CGT and should be distinct.
It’s always advisable to consult with a tax advisor regarding your specific situation to ensure you fully understand any potential tax implications when selling your property; our team can recommend a trusted partner in our network.
Are there any tax deductions available to home sellers?
Unfortunately, direct tax deductions specifically for home sellers are unavailable in Singapore. However, there are a few strategies that can potentially minimise your tax burden related to your property sale:
- Claiming Seller’s Stamp Duty (SSD) remission: While you cannot directly deduct SSD, you may be eligible for remission depending on your holding period, e.g. 50% remission for 5 years of ownership, 100% remission for more than 5 years of ownership. This reduces the overall tax burden in Singapore associated with selling your property.
- Deducting renovation and repair expenses: If you incurred essential repairs or renovations to sell your property at a higher price, you can remove these costs from your overall taxable income. However, these costs must be considered “revenue expenses” by the Inland Revenue Authority of Singapore (IRAS).
- Utilising CPF for purchase/renovation: If you used your CPF savings to purchase or renovate the property, the accrued interest on your CPF account may be tax-exempt. This can indirectly reduce your taxable income.
Due to the complexities involved, it’s highly recommended to consult a qualified tax advisor to understand your situation and explore potential tax optimization strategies related to your property sale. They can help you navigate the rules and maximise any potential deductions or benefits available.
What if I receive multiple offers? Which one should I choose?
When receiving multiple offers, it’s crucial to assess each carefully. Compare aspects such as price, down payment and financing conditions. Offers with fewer contingencies and quicker closing timelines are often more appealing.
At Singapore Luxury Homes, we assist our clients in evaluating buyer qualifications and advise on a buyer’s demeanour to facilitate a smooth transaction. It’s advisable to keep the details of other offers confidential, establish deadlines for responses and employ strategic counteroffers. Ultimately, your selling priorities and objectives will help us better facilitate the transaction. Professional advice is key in navigating negotiations to select the best offer with your selling goals.
I'm Looking to Sell My Home
Bringing It Full Circle
Selling your home is deeply interconnected with selecting the right real estate partner. It goes beyond mere transactions, focusing instead on building relationships and tapping into networks that introduce your home to the ideal buyer. This period is ripe with opportunities for sellers, with evolving market expectations and the everso-critical role of accurate pricing and masterful negotiation.
Clear communication with your real estate team is the key to a successful property sale. Sharing your selling timeline, financial expectations, and any specific concerns allows for a customised approach, ensuring your home efficiently appeals to the right buyers. From addressing necessary repairs to selecting the most effective marketing strategies and managing financial details, transparency is the pathway to a smooth sale process.
Selling your home is more than a transaction. It’s a step towards new beginnings intertwined with your personal and financial aspirations. Let our experienced team at Singapore Luxury Homes guide you in selling your home, leveraging our deep market knowledge and personalised service to unlock your property’s potential and secure the most favourable outcome.
