Selling a property in Singapore can be rewarding, especially with the city-state’s strong and resilient real estate market. However, beyond the selling price, there are several costs involved that can reduce your final take-home amount. Understanding these expenses upfront is crucial for proper planning and for achieving a smooth transaction.

This guide breaks down the key costs you may encounter when selling your home in Singapore.

Real Estate Agent Commission

Hiring a real estate agent is common practice, as they bring expertise in marketing, viewings, negotiations, and paperwork.

• Typical commission rate: 1% to 2% of the selling price
• Variation factors: Property value, agent’s reputation, and agreed terms

Legal Fees

Conveyancing—the legal process of transferring property ownership—is a necessary part of selling.

• Estimated range: $2,500 to $3,000
• Factors affecting cost: Complexity of the sale, such as multiple owners or existing encumbrances

Legal support ensures your transaction complies with Singapore’s property laws and protects your interests.

Mortgage Discharge Fee

If you have an outstanding mortgage, you’ll need to pay a discharge fee to remove the bank’s charge from your property title.

• Estimated range: $200 to $500
• Note: Check with your bank for exact charges, as fees vary across institutions.

Property Taxes

Before completing the sale, property taxes must be cleared up to the date of transfer.

• Progressive tax rate: 0% to 16% depending on annual value and owner-occupation status
• Key point: Ensure payments are up to date to avoid delays in completion.

Seller’s Stamp Duty (SSD)

SSD applies if you sell your residential property within three years of purchase.

• Sold within 1 year: 12%
• Sold within 2 years: 8%
• Sold within 3 years: 4%
• Sold after 3 years: No SSD

This cost can significantly impact net proceeds, so factor it into your selling timeline.

Conclusion

Selling your home in Singapore involves more than simply finding a buyer and agreeing on a price. With agent commissions, legal fees, mortgage discharge fees, property taxes, and potentially Seller’s Stamp Duty, the true costs can add up quickly.

By being aware of these expenses and planning ahead, you can set a realistic asking price, avoid unexpected setbacks, and manage your financial expectations effectively.