The cost and timeline of selling property in Singapore

The timeline: longer than most expect

A sale is not a single event - it is a sequence, and the sequence takes time.

• Preparation. Getting the property ready, deciding the price, and lining up an agent or your own marketing.
• Marketing and viewings. This stage is the most variable. A well-priced property in demand can find a buyer quickly; an overpriced one, or a specialised property, can take much longer.
• The Option to Purchase. Once a buyer commits, the option fee is paid and the option is exercised within the option period.
• Completion. The legal handover follows, typically a couple of months after the option is exercised.

From listing to money in hand is therefore often several months - sometimes longer for landed homes, shophouses or commercial property, where the buyer pool is narrower.

The costs of selling

Selling reduces what you receive. The main items:

• Agent's commission, if you use a licensed agent to market the property.
• Legal and conveyancing fees for the sale.
• Mortgage redemption. Your outstanding home loan is repaid from the proceeds - and if you are still inside a loan lock-in period, there may be a penalty.
• Seller's Stamp Duty, if you are selling within the holding period that attracts it.

The CPF refund: not a cost, but it reduces your cash

If you used CPF to buy the property, the amount used - plus the interest that money would have earned in your CPF account - must be refunded to your CPF account when you sell. This is not money lost; it goes back into your CPF and remains yours. But it does mean the cash in hand on completion is smaller than the sale price, sometimes by a lot, especially if you funded the purchase largely through CPF.

Working out your net proceeds

The figure that matters is not the sale price - it is what is left after everything. Roughly:

• Start with the sale price.
• Subtract the outstanding loan being redeemed.
• Subtract commission, legal fees, any lock-in penalty and any Seller's Stamp Duty.
• Set aside the CPF refund, which returns to your CPF account.

What remains is the cash you actually receive. Doing this sum before you sell - not after - prevents an unpleasant surprise at completion.

The honest summary

Selling takes several months from listing to completion, and the costs - commission, legal fees, mortgage redemption and any penalty, and Seller's Stamp Duty - together with the CPF refund mean your net cash is well below the headline price. Work out your net proceeds in advance, and confirm any Seller's Stamp Duty with IRAS and your CPF refund with the CPF Board before you commit to a plan.