Looking to sell your home? No matter whether you’re nearing the end of your Minimum Occupancy Period (MOP) or just upgrading to a bigger home, you’d want to raise the selling price of your current property.
After all, a higher selling price means you’ll reduce the amount of mortgage loan you have to take for your next home.
Read on to find out more about the factors affecting the price of a property in Singapore and simple yet effective methods to increase the price of your home.
Factors Affecting The Price Of Your Home
The good news (for sellers) is that prices of resale flats in Singapore are on the rise. On average, Singapore’s resale flats’ prices increased at an average rate of 2.88% over the past four quarters due to supply constraints of homes in Singapore.
There are definitely many factors that will affect the selling price of your home, including the floor level of your home, the direction it is facing, and even whether there are any odd shapes in your home structure.
However, the factors mentioned in the table below are the main factors to take note of.
|Factors Affecting The Selling Price of Your Home
|Supply & Demand
|If the demand for homes in the country/your immediate area is higher than the supply of homes available, the price will increase.
|How ready is your home for moving-in
|If the house is in good condition and the buyers like your decor, they would not mind purchasing the flat at a premium in exchange for convenience
|Prices of properties in your area
|Property agents and prospective buyers tend to look at past transactions of properties in the area and use it as a benchmark when proposing a buying price
After reading the table above, you’d probably come to realise that most of the major factors are outside of your control.
However, that does not mean you cannot do anything to push up the selling price, even by just a bit.
To find out how to maximise the selling price of your home, we spoke to Ms Peggie Tan, a Real Estate Salesperson in Singapore with more than nine years of experience, having transacted hundreds of properties in Singapore.
Ways To Increase The Selling Price Of Your Resale Flat
According to Ms Peggie Tan, first impression matters when it comes to selling your home:
“In my opinion, the ‘first impression’ plays a major part in every property sale. Only when interested buyers like what they see, they will realise the value of your house, and that’s where people will be willing to pay a good price.
Minor Upgrading / Renovation
If you’re willing to do an upgrade or renovation for your home but are on a limited budget, the kitchen should be your focus.
Especially for couples or families who regularly use the kitchen, peeling cabinet laminate, rusty stoves and old appliances are a turnoff.
Changing the laminate on your kitchen cabinets, changing out your stove or even the floor tiles would go a long way in making a better impression.
For individuals interested in carrying out renovation work on their homes, you can check our guides on the best renovation loans in Singapore for more cost-saving during the process.
Home-Staging Or Cleaning Up
However, not everyone will want or be able to renovate before selling their home. According to Ms Peggie Tan, home-staging is another viable alternative.
“Hiring an ID or doing renovation work is going to cost you time and money even before selling your house. Usually if the house is vacant, some home-staging ideas can be used instead of carrying out renovation works.”
Even if you are currently residing in the property, there are a few things you can do to maximise the value of your home.
This includes keeping your home clean when potential buyers come for property viewing, and to carry out a massive decluttering before opening your home for viewing sessions.
You can also give your home a repaint with pale and bright colours to make the interior look bright, spacious and airy.
By tidying up and making your home bright and airy, it’ll allow prospective buyers to imagine how they can fit their own furniture.
Is There A Good Time To Sell?
Another question that prospective sellers would have is whether they would need to time the sale of their resale flat.
According to Ms Peggie Tan, there isn’t a specific time of the year where you’ll profit more from selling your home.
“The trend in the property market is ever changing, due to market news and different situations [such as the most recent pandemic] happening . Hence, there isn’t any best time or worst time of the year to sell your house.
“In my opinion, as long as the sale of your home is well planned and the current market situation and risks are being assessed, timing the sale of your house would be a breeze.”
Find the Cheapest Home Loans in Singapore
Three Tips For Prospective Homeowners
For individuals who are getting a BTO and would like to maximise the selling price of their home after their Minimum Occupancy Period (MOP) ends, here are a few things you can consider:
- Choose units on mid to higher floor level, and if possible an unblocked view.
- Avoid choosing units facing the main road to limit road noise.
- Try not to do excessive renovations with too many built-ins, so that the next buyer can have more flexibility in re-designing the house.
Is It Necessary To Get A Property Agent For Your Sale
In Singapore, HDB resale flat sellers typically pay a 2% agent fee to Real Estate Salesperson (Property Agents) to assist them in transacting their flat.
According to Ms Peggie Tan, there are two reasons why this could be a necessary expense:
The first is experience.
“[The] question is, how many times can an average person sell their house, especially in the Singaporean context? Over the years, property prices [have] always headed north. Every seller wants to sell at a high price, and every buyer wants a value buy.”
The second reason is emotional attachment.
“Selling your home can be bittersweet. When you think of parting ways with it and [having] to handle the whole selling process, it can be stressful. I would recommend buyers engage a Property Agent who is familiar with the whole procedure and your emotional barrier to help you with negotiations to make a sound decision.”
In a nutshell, having an experienced property agent to help navigate and transact the entire process will result in a fair value for both parties.
Other than selling your current residence, Ms Peggie Tan also advised sellers not to neglect their next home, especially their ability to finance the purchase, whether through sales proceeds topped up with a home mortgage loan or otherwise.
For prospective sellers looking for property-related advice and assistance, you can reach out to Ms Peggie Tan for a non-obligatory sharing session here.