Step 3: Source for the HDB Flat of Your Dreams
Once you have nailed down your budget, you can look for the flat of your dreams. You can find property listings from the numerous online property portals like:
Also, the best part about buying a resale flat (compared to a BTO flat) is the freedom. You can choose from any flat on the island — within your budget of course.
Here are some things you need to consider:
- Your Needs: For example, you might want to get a house near your parents which also entitles you to the HDB Proximity Housing Grant (PHG) (up to $30,000).
- Ethnic Integration Policy (EIP) and Singapore Permanent Resident (SPR) Quota: You will also need to check if there any EIP or SIP restrictions on the flat in the block you are considering. You can use this tool from HDB to check this.
- Balance Flat Lease: CPF usage and HDB loans will be pro-rated based on whether the property’s remaining lease can cover the youngest buyer till age 95. Buyers who purchase a home for life will face fewer restrictions on their CPF usage.
For this step, your time will be spent doing property viewings.
You must also inform your seller that an agent does not represent you.
Step 4: Bargain With The Seller and Sign the Option to Purchase (OTP)
Generally, the prices you see on Singapore property listings are negotiable, so do not be afraid to bargain armed with the recent transacted prices of resale flats in the location you are keen on. These prices reflect the market conditions at the time of the transactions. You may refer to them to set your offer price.
Once you and the seller agree on the price, you can make an offer to the seller, who will offer you an Option to Purchase (OTP):
The OTP is a legally binding contract between you and the seller which guarantees your right to purchase the HDB flat at the agreed-upon price. For the next 21 days, the seller cannot sell the unit to anyone else.
You can then sign the Option to Purchase (OTP), which the seller should print out.
You must also pay the option fee to ‘book’ the flat. The fee can range from $1 to $1,000 (it is also negotiable).
Do note that once you have paid the option fee, you are obliged to exercise the OTP within 21 days, as the option fee is forfeited if the OTP is not exercised.
If you do not exercise the OTP, the seller can sell the flat to anyone else after 21 days.
Step 5: Submit a Request For Value
The next step would be to submit a request for value of the flat you are buying online on the HDB Flat Portal. You should do this one working day after the Option Date (found on the OTP).
Do note that the whole home valuation process will take five to seven working days after submitting the Request For Value.
However, you can skip this step if you are not utilising your CPF savings or any housing loan to finance the flat purchase.
Step 6: Exercise the OTP and Pay Option Exercise Fee
The next step would be to exercise the OTP and pay the exercise fee which should not be more than $5,000 (including option fee).
Step 7: Submit the Resale Flat Application to HDB
The next step is for both parties to submit their part of the resale application to HDB.
This is a contractual agreement between you and the seller. The timeframe can be extended with mutual consent.
According to HDB, both buyers and sellers will need to:
A resale application is considered complete only when the HDB receives both the buyers’ and sellers’ parts of the resale application along with the required supporting documents. If not, the application will expire, requiring both parties to start over and pay the application fees again. These fees are non-refundable.
Step 8: Acknowledge Resale Documents and Pay Fees for Resale Approval
You are almost there!
Upon receiving a complete resale application along with all supporting documents from both the buyers and sellers, HDB will verify the eligibility of both parties and accept the resale application within 28 working days. HDB will then prepare the necessary documents for endorsement by both parties, which will be ready approximately three weeks after the application is accepted. Both the buyers and sellers must acknowledge and endorse the resale documents and pay the required fees.
Once the documents are endorsed and the fees are paid, HDB will grant an in-principle approval for the resale transaction.
Step 9: Attend the Resale Completion Appointment
The resale completion typically occurs around 8 weeks from the date HDB accepts the resale application, which is the earliest possible completion date. If you need to delay the completion, discuss this with the sellers and provide written confirmation (signed by both parties) via MyRequest@HDB.
After this, HDB will arrange a Resale Completion Appointment at the HDB Hub. Both buyers and sellers will receive SMS notifications regarding the appointment, and the details can also be accessed by logging into My Flat Dashboard.
Please note that sellers and buyers must physically attend to complete the resale transaction. If you have engaged private solicitors, your solicitor representative can attend the resale completion appointment on your behalf.
The seller will then hand over the keys to the flat.
And there you have it, you have successfully bought an HDB flat all by yourself. Congratulations!