Transacting sale of private property without agent?

[Stary]

Hi guys,

 

I am thinking of selling my private unit and because there isn't all the HDB paperwork stuff, I am thinking of doing it without an agent.

 

For those who has done this before, may I know how is the procedure like? Can me and the buyer use back the same lawyer?

 

Any help will be good.

[Mugenr]

Firstly, u need to advertise and handle all the calls coming in.

 

It would be good to give the banks a call to ask for a indicative valuation of your house.

 

This would act as a good gauge as to how much to price your house at.

 

Next when someone finally decides to buy you got to make sure you have an Option to Purchase ready.

 

You can get a lawyer or an agent friend to give you a draft.

 

If the buyer exerises the option, you can go to the lawyer to get the sales and purchase agreement done and send it to the buyer for him to sign in front of his lawyer

 

No. Both seller and buyer cannot be using the same lawyer due to conflict of interests.

 

Happy Selling

[Loneranger]

  On 3/25/2009 at 12:55 AM, Starry said:

Hi guys,

 

I am thinking of selling my private unit and because there isn't all the HDB paperwork stuff, I am thinking of doing it without an agent.

 

For those who has done this before, may I know how is the procedure like? Can me and the buyer use back the same lawyer?

 

Any help will be good.

 

 

Why so lay chay? Just add 2% more to whatever price you want and let some agent do it.

No need to waste time and money on ads.

[Hotamp]

i guess if you have the time, and you hire a lawyer to do all the transactions according to the law, it is good if you can do it on your own. For example if your asking price is $1 million then 2% will be $20,000. ai ya this type of money can save, save lah.........all depends on how much your property and time is worth

 

 

 

  On 3/25/2009 at 2:38 AM, Loneranger said:

Why so lay chay? Just add 2% more to whatever price you want and let some agent do it.

No need to waste time and money on ads.

 

[Bullterrier]

Mugenr is correct. The agent's role is just to get you the best deal for your house and some minor paperwork done together with the initial deposit payment. The lawyers from the buyer, seller and the banks if there is an outstanding loan on the property and the buyer's bank if the buyer needs a loan etc, take over. So if you are trying to save yourself some commission money and being taken for a possible ride by some unscurpulous agents (ala the recent ERA case) then you can try advertising and getting a buyer on your own. But its a lot of work and time taking all kind of calls and enquiries (maybe during this period there wont be much calls anyway) and then knowing how to do the sale when the buyer is viewing your place. All the best!

[Stary]

  On 3/25/2009 at 3:01 AM, Hotamp said:

i guess if you have the time, and you hire a lawyer to do all the transactions according to the law, it is good if you can do it on your own. For example if your asking price is $1 million then 2% will be $20,000. ai ya this type of money can save, save lah.........all depends on how much your property and time is worth

 

 

Was thinking of that also.....even $10,000 also I want to save. Seriously, I don't think the ads and some legwork is worth $10,000

 

For HDB I won't mind getting agent because too many procedures to follow.

 

But I know for private, just get the option to purchase (normally 1% from the buyer), then get a lawyer and let the lawyer settle everything.

 

 

[Toapayohkid]

can do without agent. just need the lawyer for the option forms i think then the lawyer can follow through. save commission. can do internet ads, convenient and mostly free. just be prepared to spend some effort. but if your house $1 million, that is a huge amount of agent commision no need to pay if diy. good luck and let us know what happens.

[Stary]

  On 3/25/2009 at 3:19 AM, Toapayohkid said:

can do without agent. just need the lawyer for the option forms i think then the lawyer can follow through. save commission. can do internet ads, convenient and mostly free. just be prepared to spend some effort. but if your house $1 million, that is a huge amount of agent commision no need to pay if diy. good luck and let us know what happens.

 

Thanks guys....

 

For those who have done it before, so the first thing to do is to get the option form right? Get this from the lawyer?

 

 

[Mugenr]

Lawyer is best or agent friend if you have.

 

and Call the bank to check indication... Will drop you a PM on my mobile banker's number.

[Soya]

It's easy to DIY pte property sale or letting if u know how. Get an indicative bank valuation from a loan broker (they can usually help wif a better loan quantum). Then appt a lawyer. Can ask him to give u 2 sets of std option to purchase form. If deal is struck, buyer pay 1% (can be more or less, no fixed amt by law except $1 for a contract to be binding; but 1% is the commonly accepted practice) cheque in your name, u pass one signed copy of option form to buyer and he submit to your lawyer within 14 days (or anytime agreed between both parties; but again 14 days is the common practice). Your lawyer will deal wif the rest, i.e liase wif buyer's lawyer, CPF, bank, etc. No such leceh HDB stuff like rigid 1st appt, 2nd appt lah. Once buyer's loan is being processed, u will get a call from the bank to view and do a on-site valuation on your ppty. Your lawyer will call u to sign the necessary paperwork and deeds when it's ready.

 

Most of the calls will come from agents. Dun let those agents scare u into thinking it's a big scary world out there. Yes, I know there are spendid agents out there but I've also heard and experienced cases where the agent 'undersold' the ppty juz to close the deal quickly to get their commission sealed quickly. For instance, u may ask for $20k more to close the deal but at 1% comm, that's juz $200 to the agent. He'd rather talk u to sell cheap than risk the buyer (and his $$comm) walking away. If you're marketing it yourself, u could even treat it as a co-broke deal and pay only 0.5% comm. But if u want agents to pay more attention to your ppty, pay the 1% (or even add some earlybird sweetener) and dun be afraid to end your ad identifying yourself as the 'Owner'. Agents would prefer to deal direct wif the owner and collect the full comm rather than having to co-broke and share their comm wif another agent. And dun fall sucker to the 2% comm guideline that some will tell u. There's no such law-enforced guideline (heck, there's no law to enforce agents to begin wif!). Sometimes it's not abt saving the comm or factoring into the sale price but rather that u control the information and price. Pay comm upon completion of sale and handover.

 

Hope the info helps. Good luck wif your sale!

[Throttle2]

  On 3/25/2009 at 12:55 AM, Starry said:

Hi guys,

 

I am thinking of selling my private unit and because there isn't all the HDB paperwork stuff, I am thinking of doing it without an agent.

 

For those who has done this before, may I know how is the procedure like? Can me and the buyer use back the same lawyer?

 

Any help will be good.

 

 

Have done it before twice and will do it again if required.

 

How you market it is up to the individual so i leave that out

 

Procedure is simple. I just talk about the standard stuff.

It can be different depending on your agreement with buyer.

 

here goes:-

Get your lawyer to draft an option to purchase.

Once conclusive, buyer pays you 1% of the sale price to obtain the option for 14 days.

within these fourteen days, buyer should secure valuation , loan pre-approval and his representing lawyer. the rest will be between his lawyer and yours.

 

Your lawyer will update as it moves along

 

sit back and collect money

 

good luck

Sit back

 

[Loneranger]

  On 3/25/2009 at 3:53 AM, Soya said:

It's easy to DIY pte property sale or letting if u know how. Get an indicative bank valuation from a loan broker (they can usually help wif a better loan quantum). Then appt a lawyer. Can ask him to give u 2 sets of std option to purchase form. If deal is struck, buyer pay 1% (can be more or less, no fixed amt by law except $1 for a contract to be binding; but 1% is the commonly accepted practice) cheque in your name, u pass one signed copy of option form to buyer and he submit to your lawyer within 14 days (or anytime agreed between both parties; but again 14 days is the common practice). Your lawyer will deal wif the rest, i.e liase wif buyer's lawyer, CPF, bank, etc. No such leceh HDB stuff like rigid 1st appt, 2nd appt lah. Once buyer's loan is being processed, u will get a call from the bank to view and do a on-site valuation on your ppty. Your lawyer will call u to sign the necessary paperwork and deeds when it's ready.

 

Most of the calls will come from agents. Dun let those agents scare u into thinking it's a big scary world out there. Yes, I know there are spendid agents out there but I've also heard and experienced cases where the agent 'undersold' the ppty juz to close the deal quickly to get their commission sealed quickly. For instance, u may ask for $20k more to close the deal but at 1% comm, that's juz $200 to the agent. He'd rather talk u to sell cheap than risk the buyer (and his $$comm) walking away. If you're marketing it yourself, u could even treat it as a co-broke deal and pay only 0.5% comm. But if u want agents to pay more attention to your ppty, pay the 1% (or even add some earlybird sweetener) and dun be afraid to end your ad identifying yourself as the 'Owner'. Agents would prefer to deal direct wif the owner and collect the full comm rather than having to co-broke and share their comm wif another agent. And dun fall sucker to the 2% comm guideline that some will tell u. There's no such law-enforced guideline (heck, there's no law to enforce agents to begin wif!). Sometimes it's not abt saving the comm or factoring into the sale price but rather that u control the information and price. Pay comm upon completion of sale and handover.

 

Hope the info helps. Good luck wif your sale!

 

 

I paid 2% to my agent, so you calling me a sucker is it?

[Stary]

  On 3/25/2009 at 3:53 AM, Soya said:

It's easy to DIY pte property sale or letting if u know how. Get an indicative bank valuation from a loan broker (they can usually help wif a better loan quantum). Then appt a lawyer. Can ask him to give u 2 sets of std option to purchase form. If deal is struck, buyer pay 1% (can be more or less, no fixed amt by law except $1 for a contract to be binding; but 1% is the commonly accepted practice) cheque in your name, u pass one signed copy of option form to buyer and he submit to your lawyer within 14 days (or anytime agreed between both parties; but again 14 days is the common practice). Your lawyer will deal wif the rest, i.e liase wif buyer's lawyer, CPF, bank, etc. No such leceh HDB stuff like rigid 1st appt, 2nd appt lah. Once buyer's loan is being processed, u will get a call from the bank to view and do a on-site valuation on your ppty. Your lawyer will call u to sign the necessary paperwork and deeds when it's ready.

 

Most of the calls will come from agents. Dun let those agents scare u into thinking it's a big scary world out there. Yes, I know there are spendid agents out there but I've also heard and experienced cases where the agent 'undersold' the ppty juz to close the deal quickly to get their commission sealed quickly. For instance, u may ask for $20k more to close the deal but at 1% comm, that's juz $200 to the agent. He'd rather talk u to sell cheap than risk the buyer (and his $$comm) walking away. If you're marketing it yourself, u could even treat it as a co-broke deal and pay only 0.5% comm. But if u want agents to pay more attention to your ppty, pay the 1% (or even add some earlybird sweetener) and dun be afraid to end your ad identifying yourself as the 'Owner'. Agents would prefer to deal direct wif the owner and collect the full comm rather than having to co-broke and share their comm wif another agent. And dun fall sucker to the 2% comm guideline that some will tell u. There's no such law-enforced guideline (heck, there's no law to enforce agents to begin wif!). Sometimes it's not abt saving the comm or factoring into the sale price but rather that u control the information and price. Pay comm upon completion of sale and handover.

 

Hope the info helps. Good luck wif your sale!

 

 

Check with you again. You said 2 set of options form. One set pass to buyer and he submit to my lawyer?? Shouldn't it be his lawyer?

 

Then another set of option form do what?

 

Thanks

[Stary]

  On 3/25/2009 at 4:05 AM, Throttle2 said:

Have done it before twice and will do it again if required.

 

How you market it is up to the individual so i leave that out

 

Procedure is simple. I just talk about the standard stuff.

It can be different depending on your agreement with buyer.

 

here goes:-

Get your lawyer to draft an option to purchase.

Once conclusive, buyer pays you 1% of the sale price to obtain the option for 14 days.

within these fourteen days, buyer should secure valuation , loan pre-approval and his representing lawyer. the rest will be between his lawyer and yours.

 

Your lawyer will update as it moves along

 

sit back and collect money

 

good luck

Sit back

 

Thanks. I believe you must have posted ads in ST classifed? Any tips when posting those ads?

 

[Soya]

My typo. Yes, a set each to your own lawyers.

[Soya]

  On 3/25/2009 at 4:07 AM, Loneranger said:

I paid 2% to my agent, so you calling me a sucker is it?

 

Hehe...u rich mah. I ever paid 0.5%.

[Throttle2]

  On 3/25/2009 at 4:19 AM, Starry said:

Thanks. I believe you must have posted ads in ST classifed? Any tips when posting those ads?

 

 

Nope

 

I posted in a few property websites. In fact I cant even remember which one.

 

I also use word of mouth. depending on whose mouth, thats a very powerful tool.

 

Hopefully the buyer sees your ad becos working with agents suck.

 

I posted my ad as one which allows buyer direct access to an honest discussion with the owner.

 

maybe it only attracts people like myself, people who prefer to buy and sell properties without the middleman creating the mess. I dont know but it worked for me.

 

 

 

[DonDon]

With your thread and reply from around, I read it as sign of retrenchment for property agent in SG