HDB Resale Procedure & Timeline

Please note that I am only sharing my own experience of DIY buying HDB. I represent no professional body. For more info, you really should study HDB website (I expect someone who DIY is working hard to cut cost).

1. Option to Purchase (OTP)
   - HDB has a good explanation of how to enter into a contract using OTP
   - Most likely you will be requested to write $1000 cheque ($1000 is the max) as option fee
   - You will have 14 days to consider whether you still interested to buy
   - The seller agent will hand you the OTP form (or you can print from HDB website)
   - In fact, this shouldn't consider as your "cooling period" (everyone called this cooling period). Use this few days to settle your financial stuff
   - If you are really interested, you should start to engage a bank as soon as possible upon signing the OTP ($1000 is not refundable). Most likely you will able to make it on time
   - Before proceeding to exercise, print out the Buyer Resale Checklist and do a good checking and sign on the checklist (take note of the date, it is before exercising).
   
   
2. Exercise OTP
   - You can exercise anytime between the point of signing OTP and OTP expiry date
   - Exercise the OTP by paying $4000 (most likely you will be requested for max amount)
   - Discuss with the seller (or seller agent) for the 1st appointment date (refer to the HDB appointment schedule)
   - Two months is standard timing but it always can be faster if there is an empty slot
   - The seller agent will submit the seller side application to HDB
   - For our case, since we are DIY, we submit application through HDB Resale Net
   - Most people will think it is very tedious. In fact, I think it is very easy unless you never fill in online form before
   - Just take note of the amount of OTP and exercise fee when filling in the form. This part is always missed by a lot of DIY buyer.
   - Look for your lawyer if you are taking bank loan, there are a lot of law firm offering HDB resale service. Remember ask whether the fees are including CPF withdrawal fees. For my case, law firm that I surveyed is cheaper than the firm that was introduced by my banker (you should have guessed so). DIY buyer should understand why.
   
   
3. First Appointment
   - Between the application submission date and first appointment date, HDB will send you the documents needed for first appointment.
   - Most likely you will have all the documents. Just few documents, please be precise and do follow up enquiry to HDB if you don't understand. You will save $5000 for this.
   - For foreigner, this is pretty tricky, you might need to rush back home country for proof document for your private property sale. If you are reading this before this point of time, you can bring these documents before even you look for flat.
   - You can go down to the law firm to discuss before your first appointment or discuss after first appointment. It is all about you need to know, money for completion.
   - Stamp duty is about $10k (varies from different flat), so you should account this into your budget. Other fees are in smaller amount. Since you have already saved $5000, they should be all right to you.
   - At this point of time, it is about to reach 80% of your HDB purchase. I never imagine how easy this is.
   - This date you will set the completion date with your seller. Try to do it end of the month or so, it is good for everyone.
   - You also can set a date for inspecting the flat before completion. By this date, you have no choice but to accept everything (it is almost useless for this inspection). Be a nice buyer, don't harass your seller with reno contractors.
   
   
4. Completion
   - I didn't go down for completion as I am represented by my lawyer. That's because I am taking bank loan.
   - You also need to pay the seller back if he/she helped you to pay the property tax.
   - Legal fees if you haven't pay.
   - You will receive the keys from your lawyer (or HDB).
   - That's all, you saved $5000!
   

I used this page as a reference when I purchase my flat.

Next, the remaining things to settle is changing of address, PUB registration, town council account etc. These are not within the scope of DIY buying HDB.

Furnishing Factor

The last and least important for a flat is the furnishing. Unless you are planning to buy and move in to stay, avoid heavy furnished house (I mean you don't like the design). Most owner requested more COV for the furnishing they think is A1 decor. In fact, if you are going to renovate entire house, stop paying for the so-called additional COV. You will have to top-up hacking cost later during your renovation. Each furniture piece counts.

From our observation, fixtures (undetachable furniture) are being valued into valuation report. Therefore, you most likely see higher valuation price for flat with fixture compared to flat without fixture (apple to apple comparison). Furnishing definitely counted into valuation price if you look at the valuation report, eg: floor tiles etc.

Floor Plan

Here is my opinion and this does not represent professional advice.

Good floor plan has few factors:

1) Squarish

2) Balanced

3) Position of rooms

4) Effective space

There is reason why Chinese loves squarish unit. Squarish layout is good for floor space planning including renovation, furnishing and activities planning. Renovation cost for non-squarish unit is usually higher due to additional work to fit material to the layout. Looking for furniture for curved, weird odd-shaped layout can be very difficult and costly (due to high customization). Mathematically, curved and odd-shaped is not space effective.

Some flat with higher ceiling (especially top floor of every flat) can fetch higher value. Higher ceiling has positive psychological effect to the occupants. Higher ceiling has better flexibility during renovation (there is lower limit for ceiling height, 2.1m). Usual flat range of ceiling can be up to 8-8.5ft. Be sure to measure the ceiling height before finalizing.

Balanced space between rooms are very important. Bigger rooms are always better but not too big till comprising the rest of the floor space. Living room should be large enough for your guest (and future guest). If living room is used as scale 1.0, kitchen should be 0.7-1.0, dining room should be 0.5-0.6, MBR should be 0.6-0.75, common rooms should be 0.5-0.6. Kitchen should have sufficient table top if you are cooking. More floor space is used for cabinet. Good walking space can accommodate 2-3 persons in the kitchen without restriction. Open concept kitchen is not for HDB (or at least not for heavy cooking occupants). Dining room space is not as important as the others due to least activities. MBR space will be used for your infants' bed later. Newer flat MBR does not even have sufficient space for cabinets. Storage bed can be a good idea later. Rooms shouldn't be taking much space aside MBR (for infant) due to low activities.

Position of rooms is depending on each preference. Layout with living room surrounded by rooms should be considered if you like merrier house but it is very noisy later. Although bigger room gives more flexibility, bigger room with small living room prevents family time as everyone will tends to hide in the room. Toilet located next to common rooms is convenient but can be smelly. Bomb shelter near kitchen is always better because the door is hidden from guests. If rooms are separated far away from each other, aircon trunking can be ugly.

For layout ideas, refer to Renotalk - Best (and worst) Layout in Public Housing.

Finally, wasted space is referring to walking space that unable to occupy any furniture. Simply draw walking space and you shall see how much is the wasted space of the flat. Remember these spaces are not useful to you. These are the examples I have drafted out. I will leave them for your interpretation. Total floor space minus walking space is your flat real effective space.

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