3 Reasons Why You Should NOT Sell Your Property Now

Headline doesn’t really sounds right huh? But that’s the point of us wanting to talk about it. The fact that you see advertisement or flyers everywhere telling you to sell blah blah. We didn’t say we don’t agree. At this current uptrend market situation, it is logical. And how long do you need to wait for another cycle to happen again? How old would you be when the next cycle comes.

Selling a property is real easy today. Even a low floor unit can fetch $30k to $50k than it was few years back. The main reason why is because of “Supply and Demand”. Simple logic. When Supply is low and Demand is high, prices goes up. In Today’s current market situation, it is the Seller’s market, hence it means good news for Sellers. We will explained more about it in the next part of this post.

There are also other factors that contributed to the demand in the market right now. For example, after the Circuit Breaker was eased last year, there are many buyers whom are eager to buy quickly because some of them might have or on the verge of losing their job. Hence, in order not to affect the loan amount, they need to settle it as soon as possible.

So while sellers we met are all hyped up about selling because of the prices now, we also highlight to them about the cons as well. Not everything is win win right.

Touching more on Supply & Demand, which is also the 1st reason on our topic here. For the mass market particularly, BTO buyers are facing timeline issues when HDB announced construction delays for BTO projects. Home buyers are becoming more worried that they will have to wait longer to get the keys, while others said they are resigned to the fact that their housing projects may now be delayed by up to one year or more. (Click on the picture to find out more)

HDB decided that it will waive the financial penalty and the one-year wait-out period for BTO buyers who are successful in their appeal in cancelling their booking. Hence, more resale buyers are flooding the market right now looking for units so that they can shift in earlier. In additional, housing grant are massive for 1st timer buying a resale unit which makes it a clear decision to buy it as their 1st property. They also get to choose their desired location, floor level and layout.

While there are HDB upgraders or right sizing to a unit suitable to their needs, the supply can’t match with the influx of buyer demand thus pushing price upwards and competition is intense snatching for a unit which we would say, have already standby cash for any Cash Over Valuation (COV).

So because of the Supply & Demand thing, you can sell at a higher price for your unit now, but you will also buy at a higher price. That’s how it goes. Of course there are some other reasons which wont affect you. For example, we sold our client’s unit and brought a New Launch project which was slated to TOP soon hence they put up at the parent’s place for the time being. But in general, most sellers would need another place once they sold off their unit.

2nd reason comes in mind with Timeline. Timeline can be easy if you read up online. But planning against your own individual case is always not the case, especially when you are selling and buying at the same time. This is because selling is just selling. Buying is just buying, Simi timeline? I don’t know leh. Tio bo?

In order to have a smooth sailing transaction, Timeline Planning is ESSENTIAL. Unless you don’t mind sleeping on the streets or void decks. Recently, we met some buyers whom have viewed our units previously and we found out one problem. The good thing is they are ready to purchase cos these buyers have already sold their units. But.. many of them didn’t ask extension of stay. Whether you are doing contra or bridging loan, you need to plan your timeline of your transaction so that you make sure you have a place to stay and have time for renovation if needed.

Because of the anxiety of current buyers out in the market right now, they might or might not be able to grant you any extension of stay. Likewise, the unit that you are purchasing, the seller might need extension of stay as well. Thus, it is very important that you plan your timeline well. Timeline is a complicated thing but it will make you feel SAFE so you don’t have sleepless night thinking what you should do if you ain’t planning.

The last reason is increasing renovation cost and shortage of labor in the construction sector now. Ask around or getting quotations from your Interior Designer. You will know. Besides the cost increasing, there bound to be some delay in delivering the unit. BTOs also delay. You think your unit exception ah?

Unless the unit you are purchasing requires minimal renovation, you probably still need to touch up here and there. And that will also means you probably paid a higher price for that particular unit. 😦 Whereas you can actually use the extra amount to design according to your liking right? Fully renovated units are nice to see but in our opinion, we like our own style of design rather than to follow the previous owner.

We hoped we had enhance some factors in your consideration if you are intending or planning to sell your unit. Feel free to contact us if you need assistance in Timeline Planning and advice or elaborate more on it.

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