Buying a Private Property: What Should You Check Before Making an Offer?
Before making an offer, check whether the price is reasonable, whether the property is suitable for your intended use, whether there are any issues with the property itself and whether the purchase works financially.
Some matters can be checked from public information. Others may require documents or clarification from the seller.
Is the asking price reasonable?
The asking price is not necessarily the value of the property.
One useful starting point is to look at recent transactions for comparable properties, taking into account factors such as:
- unit size;
- floor level;
- stack or orientation;
- tenure;
- condition;
- development; and
- date of transaction.
A difference in price between two similar units may be justified, but you should understand why.
What should I check about the property?
Consider the age and tenure of the property, the remaining lease, layout, orientation, condition and any major renovation or alteration that has been carried out.
For landed property or properties with additions and alterations, approved plans are particularly important. URA advises prospective buyers to check that there are no unauthorised works or extensions and to review the approved plans before purchase.
If you are buying a property with the intention of renovating or redeveloping it, the approved plans and relevant planning requirements should be considered before committing.
Are there any issues with the transaction?
You should also understand what you are actually buying and on what terms.
For example:
- Is the property currently occupied or tenanted?
- When can vacant possession be given?
- Is the seller proposing any unusual terms?
- What is the expected completion timeline?
- Are there any conditions that should be clarified before an offer is made?
These matters can become important if you have a specific moving date, an existing property to sell or another transaction that depends on the purchase.
Can I comfortably afford the purchase?
Being able to obtain a loan does not necessarily mean that the property is comfortable to own.
Before making an offer, consider the total amount required, including:
- downpayment;
- BSD and any applicable ABSD;
- legal fees and other transaction costs;
- renovation and moving costs;
- monthly mortgage payments; and
- your existing financial commitments.
BSD, and ABSD where applicable, are calculated on the higher of the purchase price or market value.
The financing position should therefore be understood before, rather than after, making a commitment.
What if I want to sell the property later?
Your future plans may affect the suitability of the purchase. For example, you may later need to move, sell, upgrade or acquire another property.
You should also be aware of Seller’s Stamp Duty (SSD). For residential properties acquired on or after 4 July 2025, SSD may apply if the property is sold within four years, with rates ranging from 16% for a sale within the first year to 4% between the third and fourth years.
What should I check before making an offer?
Before making an offer, consider:
- Is the asking price supported by recent transactions?
- Are there any physical or planning issues with the property?
- Is the property suitable for what I intend to do with it?
- What are the seller’s proposed terms and completion timeline?
- How much cash and CPF will I need?
- What stamp duties and other costs will apply?
- How long do I realistically expect to hold the property?
If you are considering making an offer on a private property, we can help you work through the property, pricing and transaction considerations before you commit.
This note provides general information only and does not constitute legal, tax or financial advice. Stamp duty rates, property rules and other requirements may change. Readers should verify the applicable rules with the relevant authorities and their professional advisers before proceeding with a transaction.
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