New HDB Resale Portal Impact on Property Agent
HDB Resale Portal
HDB recently announced their plans to revamped the HDB Resale Transaction process. The current system ends 31 December 2017 and the new system takes effect on 01 January 2018.
The big question that came out of this revamp exercise is how will it affect property agents. Minister of National Development, Mr Lawrence Wong , says the new HDB Resale portal will benefit real estate salesperson. It’ll free them up from the time-consuming work and allowing them to focus on higher value-added work.
How will this new system affect your job as the real estate salesperson in a HDB transaction? Will it create a major impact in your business?
If your focus has been in HDB resale Transaction, you will be glad that HDB announced this new change. Let's see how this new system helps real estate salesperson.
The Current System
The data entry process is prone to users making errors and we need to double, triple check to ensure the data is input correctly. Whenever a mistake is submitted, there’s always this chaotic moment where users had to contact HDB hotline to amend the changes immediately. This new system, hopefully, makes submission of Resale transactions better and more efficient.
In the current system, the sale of the HDB flat is only confirmed after the first appointment with the HDB Officer. It’s only at this time, the HDB Officer will do an official check of all the documents, confirmed the eligibility and verify the financial aspects of the transaction such as HDB Loan, CPF funds, bank loan and so on.
Only upon successful verification, the approval of HDB Resale flat can be given. Should any problems be raised during the first appointment, and it cannot be resolved during the appointment, the entire transaction can be voided.
In the event the transaction is voided, so much time and money is wasted. You see, the day the option to purchase is issued, you have to immediately request for valuation of the flat and the buyer needs to pay for it. You also need to ensure the loan approval is ready and then get the option to purchase exercised.
To submit the resale application, you also need to pay for it. This process, from OTP issued to exercise date takes maximum 21 days to complete. Once the option to purchase is exercised, both buyer and seller needs to apply for hdb first appointment.
If you check the next available slot for hdb first appointment, it’s normal to wait for two months for the next appointment. Can you imagine how much time is wasted if the case is thrown out during the first appointment? That’s about three months and the seller have to start all over again.
What happens if the seller is in need of funds? What happens if a brand new house is waiting for the seller? They can’t move until their current hdb is sold. In three months, prices of property could also have moved significantly. There’s opportunity cost that affects you.
When does the real work of the real estate salesperson really starts?
The real work of a real estate salesperson starts from the day a buyer or seller engages the salesperson.
It’s from the start that we, as a consultant, not an agent, help our clients plan and strategize their property buying and selling journey.
It is from the start all the eligibility conditions, financial calculation and all the necessary paperwork is done RIGHT, upfront.
It is from the start, all the efforts and concentration is focused on putting the property in the market and to find the right buyer.
All these must be done correctly so that by the time the first appointment day arrives, every paperwork, every documentation and every conditions set out by HDB are approved without any problems.
Our very important role starts from Day One. By the time it reaches first appointment day, it is just a formality.
What happens when new system starts?
Now, with this new change that will start next year, the only impact is the change in timeline. No more first appointment.
This "first appointment" now is replaced by the submission of your Resale application online.
With the submission of resale application online, all the checks and balance now are done upfront. Upon completion, the buyer and seller just need to either go to HDB office or a lawyer’s office to sign the papers.
Your job as a real estate salesperson is still important. You You provide value to the time-saving work and advise you give to your client.
With this new announcement from HDB, one positive outcome is you get paid faster.
If you are going the DIY way...
For those of you thinking of going down the DIY route, just know there are many HDB rules, policies and conditions. Each of the rules apply differently to different buyers and sellers. It is important to know them well so that you know how it will impact the completion of your transaction.
You could be young, planning a family soon and your transaction could be deemed simple. You are tech savvy. But, here is the thing....HDB Resale transaction has nothing to do with being tech-savvy. Being tech-savvy, it only helps you in doing electronic data entry.
You need to understand buying and selling a property needs a bigger picture, better planning and better at calculating risks. Your hard-earned money is at stake.
You need to know what you want to achieve and if buying HDB flat is a better option for you today. Buying property needs a long term plan and vision.
Always remember this. It takes multiple parties to ensure the completion process takes place smoothly. You are only one part of the equation.
Even as agent, the number of complicated cases we encounter is still a concern. Many cases if not done right, it would have been thrown out. This would have been a disaster.
News reported the number of DIY cases have increased but there’s no mention of problematic cases. With so many conditions imposed by HDB in the resale of a HDB flat, I won’t be surprised the number of frustrated buyer and sellers are also on the increase.It's just that such cases goes unreported. Do consider this option very carefully.
So, in my personal opinion, I think the streamlining of process by HDB is good and we have something of value that we can still add to our clients.
Unless HDB decides to do away with all the schemes, eligibility criteria, grants and many other very specific conditions, your role as real estate salesperson is still very important and valuable to clients who appreciates your service.
About Ming Property
Have you ever wondered how ordinary people who is on a regular income makes money from real estate? Many of us are not fully aware of how to get started and because of that, we missed out on a lot of opportunities. Most of us are in similar situation and believe it or not, it is not as hard as many people think to get started in real estate investment.
All it takes is a bit of planning and taking ACTION now. Don’t wait for whatever reasons you may have that’s holding you back.
This is where we come in. We spend a lot of time talking and working with regular clients, explaining our strategies and techniques that has been used successfully in buying and selling properties in Singapore.
Our objective is to educate and inform ordinary folks on how to create wealth from one of the most important assets in their life – their property. Our value comes from giving additional insights that are not covered by the regular media. This will help clients see from a different perspective and hence, make better and more informed decisions.