Purchasing a resale flat is one of the biggest investments you’ll make, and while most people choose to engage a property agent to facilitate the process, some buyers are opting to skip the middleman to save on the 1% buyer’s commission fee.
If you’re starting on the resale journey without an agent, here’s a breakdown of the steps to note as part of the buying process, together with tips from homeowners who have managed the process themselves.
Buying a resale flat without a property agent
Image credit: lastmayday on Unsplash
Going without an agent means you’ll be taking on full ownership of the purchase process, from researching suitable flats to handling the paperwork. Although it can be time-consuming, the potential savings can be substantial. By skipping the 1% buyer’s commission, you could save thousands of dollars—funds that can be put aside for your home renovation instead.
5 steps to note when transacting without an agent
Image credit: HDB
The full resale flat purchase process can be found on HDB’s My Flat Dashboard. However, here are 5 important steps to keep track of, especially if you’re making a resale purchase without a property agent.
1. Apply for HFE Letter
Image credit: @annclarissa on Lemon8
Every flat purchase begins with the HDB Flat Eligibility Letter (HFE), which you can apply for through HDB’s My Flat Dashboard. This letter confirms whether you’re eligible to buy a resale flat and gives you an estimate of how much you can borrow from HDB based on your income.
If you’re a first-time buyer, you could qualify for a grant of up to $80,000 under the CPF Housing Grant Scheme. Single applicants aren’t left out either—through the Singles Grant, you might be eligible for up to $40,000.
2. Search for resale flats
Image credit: MyNiceHome
Once you’ve got your HFE letter, it’s time for the real work—finding a resale flat that ticks all the boxes, both in terms of your needs and budget. You can start your search on platforms like PropertyGuru, 99.co, or the official HDB Resale Flat Listing (RFL) Service on the HDB Flat Portal.
If you’re using HDB’s RFL service, take note that some features, such as viewing personalised payment plans and scheduling flat viewing appointments, are only available to buyers with the HFE letter. That’s why it’s best to apply for the letter as early as possible to make full use of these tools.
When it’s time to schedule viewings, don’t forget to confirm that the seller is legally eligible to sell and has completed the Minimum Occupancy Period (MOP). You can check this by reviewing their flat seller’s page on the HDB portal and looking at supporting documents like town council or utility bills.
3. Take note of quota restrictions
Image credit: HDB
Before making an offer on your dream resale flat, make sure your household falls within the Ethnic Integration Policy (EIP) Quota for that block and neighbourhood. Even if the flat is listed as available, you could be blocked from proceeding if the quota for your ethnic group is already filled. While you can appeal, keep in mind that these are assessed by HDB on a case-by-case basis.
If you’re buying as a Permanent Resident, take note of the Singapore Permanent Resident (SPR) quota. Malaysians are excluded from this quota, but non-Malaysian households must ensure they fall within the 8% SPR quota for the block and 5% for the neighbourhood.
HDB recommends checking both EIP and SPR quotas at three key stages in the resale process:
- When the seller grants the Option to Purchase (OTP);
- When you exercise the OTP; and
- When both you and the seller submit your respective portions of the resale application to HDB, completing the resale application process.
4. Obtain the Option to Purchase (OTP)
Image credit: HDB
Once you’ve agreed on purchasing a resale flat and its price, the sellers must grant you an Option to Purchase (OTP), legally giving you the exclusive right to purchase the property at the agreed price. The OTP is the only permitted form of contract between the buyer and seller in resale transactions, as any other external agreements are prohibited under the Housing and Development Act.
Request for Value (ROV)
After receiving the OTP, you must apply for a Request for Value (ROV) from HDB by the next working day, paying a processing fee of $120. You’ll also need to submit a copy of the first page of the OTP as part of the application.
The ROV will determine the flat’s official value, which determines the maximum HDB housing loan amount and CPF usage for your purchase. You don’t need to submit it if you’re planning to purchase your home entirely with cash, without CPF or HDB loan.
Option & Exercise Fees
At this step, you’ll pay a deposit when the sellers grant you the OTP and when you decide to exercise the OTP during the option period. The deposit includes the option fee (between $1 and $1,000) and the exercise fee (up to $4,000). These fees are decided by the seller and paid directly to them.
Remember to keep proof of payment made to the seller, such as recording the cheque number or saving the PayNow transaction screenshot. If you plan on getting a bank loan to finance your purchase, you must have a Letter of Offer (LO) from the bank before exercising the OTP.
Cash Over Valuation (COV)
You may need to pay Cash Over Valuation (COV) if your offer is higher than HDB’s valuation of the flat. This amount can only be paid in cash and cannot be covered by CPF or a housing loan.
5. Submit resale flat application to HDB
Image credit: @77shome on Lemon8
Both you and the sellers must submit your respective parts of the resale application within 7 calendar days of each other, along with the necessary supporting documents. The resale application fee costs $40 for 1 to 2-room flats, and $80 for 3-room flats and above.
HDB will review and accept the resale application within 28 working days. During this period, you’ll need to make the initial payment and settle any required fees by HDB, such as stamp duty and legal fees, if HDB is representing you as the solicitor.
To finalise the transaction, both parties must attend a Resale Completion Appointment at HDB Hub. Before the appointment, arrange with the sellers to inspect the flat and purchase fire insurance if you’re taking a loan from HDB. On the day of the appointment, the keys will officially be handed over to you, completing the resale process.
Tips & tricks from homeowners with experience
1. Be prepared for the work involved
When you skip the property agent, you’re taking on their entire job—scouring listings on multiple property platforms, arranging viewings, and handling paperwork. It can get pretty overwhelming, especially if you’re balancing a full-time job, so be prepared for the time and energy commitment this requires.
A homeowner’s experience:
“Be prepared to invest all your free time scouting properties within expectations. Beware of: seeing multiple listings for the same flat on every portal, getting frustrated at ElP restrictions, and sighing at starting prices way beyond your budget.” – @fitbibdiary on Lemon8
2. Check if you have any pending BTO application results
Image credit: Jiachen Lin on Unsplash
If you’ve applied for a BTO flat to increase your chances of securing a home, be aware that a pending BTO application can delay the approval of your resale application. Past homebuyers have mentioned that their resale application was held up because of a pending BTO application. In some cases, you might even need to ask HDB to cancel the pending BTO application before the results are released.
A homeowner’s experience:
“The biggest hiccup? Our HDB’s resale application—because we had a pending BTO. We went back and forth with different HDB officers on the phone, through emails and even went down to the HDB hub to get it sorted asap. Time was tight—we needed to complete the application to lock the deal. Thankfully, all the HDB officers we spoke to were all so helpful and responsive.” – @txng.k on Lemon8
3. Prepare questions to ask the seller’s agent
When speaking to the seller or their agent, it’s important to ask about the remaining lease and their reason for selling. These questions can give you insight into the unit’s long-term value and help uncover any potential issues with the flat or the surrounding neighbourhood.
As highlighted by Lemon8 user @ginaquek, some questions that homeowners might miss out include:
- Does the seller require any extension of stay? This might affect your resale flat purchase timeline, especially if you’re planning a home renovation.
- Asking about the seller’s last rejected offer to have a better gauge of the seller’s expectations.
A homeowner’s experience:
“We asked the [last rejected offer] for every single unit we viewed to have a good gauge of the estate’s asking prices. […] Another reason we ask is also to gauge how serious the seller is so we know we are not wasting time. Example, upon hearing a level 3 unit rejected a $960k offer, we instantly knew it was not for us!” – @ginaquek on Lemon8
4. Negotiation advice
Image credit: @kohshien_ on Lemon8
To strengthen your negotiating position, it’s crucial to understand what impacts the value of a resale flat, so you don’t end up overpaying. Key factors include the flat’s condition, how long it’s been on the market, its sun exposure, and even the neighbours nearby.
Looking at past resale prices in the same area can also guide you in making an informed offer, one that’s less likely to include a Cash Over Valuation (COV). Take your time to assess all these elements before negotiating, and don’t let the seller’s agent rush you into making a decision before you’re comfortable.
A homeowner’s experience:
“Most agents will say they could help you out with the negotiation, but I’m highly doubtful of that. The seller’s agent has an obligation to tell the sellers every offer that they receive & most of the time the highest offer still gets the flat.” – @kopiandbbt on Lemon8
5. Appeal high COV
Image credit: HDB
If your COV is too high, you can try submitting an appeal letter to HDB via the HDB portal. As recommended by Lemon8 user @fitbibdiary, including details such as recent transactions in the area and specifics about the unit’s condition may help strengthen your case.
Although appeals are reviewed on a case-by-case basis, it’s still worth a shot if you’re hoping to reduce the amount of cash needed upfront.
A homeowner’s experience:
“Share your unit’s condition. HDB does not always send people down to evaluate your flat’s condition and sometimes gauges value based on past valuations.” – @fitbibdiary on Lemon8
How to buy a resale flat without a property agent
Buying a resale flat without a property agent might seem overwhelming at first, but the savings on commission fees—and the sense of accomplishment from managing the process yourself—can make it worthwhile. With the right information and a solid understanding of the paperwork, you’ll be well-prepared to take charge of your home-buying journey and find a place that fits both your budget and your expectations.
For more HDB news:
- 4 cheapest 4-room HDB resale flats to buy in the east side
- 775 new BTO units coming to Sembawang North
- 7 hidden costs when you buy a HDB BTO
Cover image adapted from: Steven EWG on Unsplash, Uchify
Drop us your email so you won't miss the latest news.
