Calculate Your Sales Proceed from Sale of Your Property

This article is suitable for Singaporeans, Singapore PRs & Foreigners, and applicable for Singapore Residential Property only.

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Why did we decide to come up with this article?

Today we received an enquiry from our user, Karen, on how to input sales proceeds of her current property into our financial planner – property budget calculator.

We would like to thank Karen for her feedback, and we will incorporate “Sales Proceeds” into the next update of our financial planner. We informed her that, for now, she can enter the sales proceeds into the “Cash” & “CPF” fields in the section “How much funds do you have?” (see screenshot). We went further to provide her with information on how to calculate the sales proceeds she may gain through the sale of her current property.

While trying to collate information, we realised that Sales Proceeds Calculation for HDB was well covered by HDB but for private property was not readily available. So, we decided to put up this article for the benefit of sellers who are keen to determine the sales proceeds they can get from selling their current property.

Before we head into the article, we would like to once again thank Karen for the feedback, and compliments on how our property financial planner has helped her to work out her budget for her property purchase.

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Sales Proceed from the Sale of Private Residential Property

Before you can work out the estimated sale proceeds you can get from the sales of your residential property, you will need to gather the following information:

• Estimated Sales Price of Your Property
• Outstanding Mortgage Loan Amount
• CPF Monies Utilised
• Seller Stamp Duty
• Property Agent Commission
• Legal Fees
• Mortgage Loan Pre-Payment Penalties
• Other

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Estimated Sales Price of Your Property

Although the sales price of your property is the result of your negotiations between you and the buyer, you may still use the past transacted prices to guide you in determining the estimated sales price of your property. You may visit URA to view the last 36 months of residential property transactions with caveats lodged or options issued. You can view the past residential property transactions at https://www.ura.gov.sg/realEstateIIWeb/transaction/search.action#tab.

Alternatively, you may check with service providers like The Edge Property, SRX & PropertyNet.SG on the estimated value of your property. We emphasise that the value they provided are estimated. The value of your property depends on a variety of factors, including the condition of your property, the facing of your property, the layout of your property etc.

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Outstanding Mortgage Loan Amount

The outstanding mortgage loan amount will be deducted from your resale price. You may contact your bank to ask for the outstanding mortgage loan amount. In the event that your resale price is not enough to settle your outstanding mortgage loan, your sale will be considered a negative sale and you will have to pay the shortfall in cash to the lending bank.

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CPF Monies Utilised

The amount of CPF monies utilised towards your purchase of your private property have to be returned to your CPF Ordinary Account, together with the accrued interest. You may check on the amount of CPF monies you need to refund to your CPF Ordinary Account (OA) by logging into your CPF Account.

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Seller Stamp Duty

If your residential property is purchased on or after 14 Jan 2011, SSD is payable if the residential property is sold within the holding period. The rates of SSD payable on residential property are summarised in the table below:

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Property Agent Commission

If you have engaged the service of a real estate salesperson (or commonly known as property agent) to market your property, you would have to pay them a service fee. For private residential property, the commission is typically 1 to 2% of your sales price.

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Legal Fees

Once you have found a buyer and agreed on the price, you will require the service of a conveyancing lawyer to complete the sales. The fees payable is typically between SGD 1,500 to SGD 2,500.

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Mortgage Loan Pre-Payment Penalties

In the event that you sell your property before the expiration of the lock-in period, you will have to pay a penalty fee that usually amounts to 1.5 per cent of your outstanding loan. That means if you have S$500,000 remaining on your loan, you may have to pay a S$7,500 penalty.

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Other Cost

You will have to pay up the outstanding property tax, maintenance fees etc.

Case Studies

John has bought a property more 3 years back and decided to sell his property at an estimated price of S$1,000,000 with the agreement to pay a property agent a commission of 2%. He has checked that he has to refund his CPF with accrued interest of around S$150,000 and has an outstanding loan of S$500,000 with refinancing done in less than 1 year. His sales proceeds will be $280,500.

Calculations are shown in the table below:

Do hope the above article helped you in working out the estimated sales proceed from the sales of your property. If you have any questions or feedback, feel free to write in to us at hello@realila.sg. We love to hear from you.

Disclaimer: Information provided on this website is general in nature and does not constitute financial advice. Realila will endeavour to update the website as needed. However, information can change without notice and we do not guarantee the accuracy of information on the website, including information provided by third parties, at any particular time. Whilst every effort has been made to ensure that the information provided is accurate, individuals must not rely on this information to make a financial or investment decision.