Buying a resale HDB flat in Singapore may seem overwhelming at first, but with the right guidance, the process can be surprisingly simple. Initially, I thought it would be challenging to do it without an agent, but it turned out to be quite manageable. By going agent-free, you can save on agent fees, while the seller’s agent takes care of the document preparation. The HDB portal is also user-friendly and easy to navigate.
Read more: Guide to Purchasing a Resale HDB Flat in Singapore Without an AgentHere’s a step-by-step guide to help you purchase your first resale flat without an agent based on my recent experience:
Step 1: Apply for HFE Letter
Before purchasing a resale flat, you must apply for the HDB Financial Eligibility (HFE) letter. This letter confirms that you meet the financial criteria for the purchase. You can easily apply for it on the HDB website, where you’ll need to provide details about your income, family composition, and other relevant information. Keep in mind that the HFE letter is valid for 9 months from the date of issuance.
Step 2: Search for Flats on listing websites like PropertyGuru
Once you have your HFE letter, it’s time to start looking for flats. Platforms like PropertyGuru, 99.co, and SRX are excellent resources for browsing available resale HDB flats. You can filter your search based on location, price range, flat type, and amenities to find options that suit your needs and budget. Take your time and don’t rush into a decision—attend multiple viewings to get a better sense of what you want. The process might take anywhere from a few weeks to several months, depending on your preferences. For me, it took a bit longer to finally secure the perfect place.
Step 3: Contact Seller’s Agent for House Viewing
When you find a flat you’re interested in, reach out to the seller’s agent to arrange a viewing. This is typically done via WhatsApp for convenience. During the viewing, pay close attention to the flat’s condition, the surrounding amenities, and the overall environment of the neighbourhood.
Step 4: Make an Offer
Once you’ve selected a flat, it’s time to make an offer. Take your budget into account and consider whether you’re willing to cover the cash over valuation (COV), which is the difference between the flat’s market value and its asking price. The exact valuation won’t be known until you request the Option to Purchase (OTP), so be careful not to disclose the valuation to the seller beforehand.
To determine a fair price, check the recent transaction prices of similar flats in the area. This will give you an idea of whether the seller’s asking price is reasonable.
Step 5: Obtain Option to Purchase (OTP) from Seller
Once your offer is accepted, the seller will provide you with the Option to Purchase (OTP), which gives you the exclusive right to buy the flat. Typically, you will need to pay S$1,000 cash to the seller for the OTP. The OTP is usually valid for up to 21 days. So be sure to carefully review its terms, ensuring it includes details such as the agreed price and the completion timeline.
Step 6: Submit the Portal and Request for Valuation from HDB
Once you have the OTP, go to the HDB resale portal to submit your details. During this step, you’ll request for a valuation from HDB. The valuation will determine the market value of the flat, which will help you assess the fairness of the price.
Step 7: Exercise Option-To-Purchase (OTP)
After receiving the valuation result, you can choose to exercise the Option to Purchase (OTP), confirming your decision to proceed with the flat purchase. At this point, you will need to pay S$4,000 in cash to the seller. This step is crucial as it demonstrates your commitment to moving forward with the transaction, and the exercise fee must be settled at this stage.
Step 8: Submit Resale Application to HDB
Once the OTP has been exercised, you will need to submit your resale application to HDB. A common mistake many make is incorrectly filling out the section related to the OTP and its exercise. Be sure to include the S$5,000 in cash that you’ve already paid to the seller, as this amount will be considered part of the total flat purchase price. HDB will deduct the S$5,000 and adjust your financial calculations accordingly. Additionally, you will need to submit your financial documents to HDB for approval, including CPF withdrawal forms and payment details.
Step 9: Endorse Resale Documents and Pay Necessary Fees
Once HDB has accepted your resale application, you will receive a Resale Document from HDB. Review and endorse the documents. You’ll also need to pay any necessary fees, including the administrative fees associated with the resale transaction.
Step 10: Wait for Resale Approval
After submitting all documents and paying the necessary fees, you will need to wait for HDB’s approval. The approval process typically takes a few weeks, and once your application is approved, HDB will send you a letter confirming the completion of the sale.
Step 11: Attend Resale Completion
The final step is to attend the Resale Completion Appointment, where you will receive the keys to your new flat. This is the moment you’ve been waiting for—once the paperwork is signed and all fees are settled, the flat is officially yours. If you are unable to attend on the proposed date scheduled by HDB, you can request a change of date. However, you will need to submit an official authorization letter, signed by both you and the seller, to approve the change before it can be processed.
Buying a resale HDB flat in Singapore without an agent is entirely feasible if you follow this simple, step-by-step guide. With proper research and preparation, you can easily navigate the process on your own. Remember, HDB’s website provides all the necessary information, and if you follow the steps carefully, you’ll be able to successfully complete your purchase. Happy house hunting!
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