Good day everyone
This will be my last posting and sad to say that in times of recession Buyers and seller are hiding away from the market and my Exclusive seems to be held up currently. The above photographs
This will be my last posting and sad to say that in times of recession Buyers and seller are hiding away from the market and my Exclusive seems to be held up currently. The above photographs
is the flat I am handling now.
I shall give everyone a scenario so that you could have better understanding and benefits from my information:
A Chinese married couple owns 3 room flat which was bought directly from HDB and was fully paid by CPF at 100 thousand dollars. The house was value at 300 thousand now and the owner asking price was 20k.
Resale price:$ 320 , 000 (300,000+20,000)
CPF refund with accrued interest:110,000 (10,000+10%(assumptions))
Total conveyancing and legal fee : $500
Agent commission for selling : $6400(2% * 320 000)
Net sales proceeds for selling the house = 320 000 – (110 000 + 500 + 6400)
= $203 100
*** $203 100 is the profit returns by selling the house only
They wanted to buy a 4 room resale flat at valuation 350 thousands with 20 thousand asking price. HDB entitle them for 2nd loan as they are upgrading from 3 to 4 room. Both husband and wife average age is 30 year old
Purchase price: $370 000(350 000 + 20 000)
Outstanding Amount: $166,900 ($370 000 – $203 100)
HDB Loan : $150,210 (166,900*90%)
Monthly Installment: 420($150 , 210 / 35 years)
*** Maximum HDB loan years is 65 base on the average age of the house owner thus 65 – 30 =35 years
***$420 is the monthly installment which can be pay by cash or from CPF ordinary account.
Steps involved in selling
1.Ethic Integration
We can either call or check online for the racial balance within the flat so that we know what races cannot buy the house.
2.Valuation
Have to submit request to HDB to get the house value and takes 2 weeks to be ready.
3.Marketing
Market the flat on various medias like newspaper and property website to find the suitable buyer
4.Loan eligibility
Check the types of loan they are eligible such as bank or HDB.
5.Closing the sales
Interested buyer pays $1000 to seller to buy themselves a duration of 2 weeks and considered properly. It is like a reservation as seller cannot sell to other buyers.
6.Exercise Option
The buyer decided to buy the house and exercise the option by paying an
amount not exceeding $4000
7.Registration
All contracts and application will be sudmitted to HDB or processing and
waiting for the 1st appointment at HDB which takes 6 weeks.
8.Flat inspection
HDB will sent people to do inspection on any illegal alteration to the house.
9.1st appointment
It will take 6 weeks from date of registration and the officer in HDN will redo
financial calculation with them.
10.Letter of approval
Buyer and seller will receive a letter if approval of the house application
11.Final Inspection
The seller must let the buyer do an inspection 1 or 2 days before the
completion.
12.Completion
Completion takes 8 weeks from 1st appointment. The buyer will get their keys
to the house and Seller will get their sales proceeds on this day. This day will be the day that agents are being pay!
Hope you enjoyed and learn from my Blog. If you have any queries , feel free to leave a comment and I would return your message as soon as possible.
Take care Everyone.
