First Time Seller Series · Part 6 of 8
Evaluating offers and granting the Option to Purchase as the seller
By Winfred Quek · CEA R073319H · Published 31 August 2026
Facts verified: 31 August 2026 · Sources linked below
Key Takeaways
- Judge an offer on price, financing readiness and timeline fit together, not on the headline number alone.
- An In Principle Approval letter from the buyer's bank is the single most useful check before you commit to anyone.
- For an HDB resale flat, the option fee plus exercise fee is capped at $5,000 in total, with a 21 calendar day option period.
- For private property, an option fee of around 1 percent is common, with an option period commonly around 14 calendar days, both negotiated.
- If a buyer lets the option lapse, you keep the fee and are free to remarket immediately, a different and far milder outcome than a default after exercise.
Part 5 of this series covered getting buyers through the door and reading their feedback. This part covers what happens once one of them makes an offer, how to judge it properly, how to negotiate from a position of evidence rather than emotion, and the mechanics of granting the Option to Purchase from your side of the table.
An offer is more than a number
A first time seller's instinct is to rank offers purely by price. In practice, three things determine whether an offer is actually worth accepting.
| Factor | Why it matters |
|---|---|
| Financing readiness | A buyer without confirmed financing can fall through after you have taken the property off the market |
| Timeline fit | A buyer's preferred completion date needs to work with your own sequencing plan from part 2 of this series |
| Conditions attached | Requests such as included fittings, an extension of stay, or unusual clauses change the real value of the deal |
A high headline offer from a buyer who is weak on all three of these can be worth less in practice than a slightly lower offer from a buyer who is clearly ready to proceed on your timeline.
Checking a buyer's financing readiness before you commit
The single most useful step available to you is asking for an In Principle Approval letter from the buyer's bank before you accept an offer or grant an option. Our guide to buyer due diligence covers this in full. An In Principle Approval tells you a bank has already checked the buyer's income, debts and credit record and is prepared to lend up to a stated amount, which is a materially stronger signal than a verbal assurance or a booking deposit alone. Pair it with a realistic completion timeline before you commit to anyone.
Negotiation posture as the seller
Negotiate from the same evidence base you used to set your asking price in part 3 of this series, comparable transactions and a realistic view of valuation, rather than from an emotional anchor to what you originally paid or what you hoped to achieve. Our guide to negotiating property price covers specific tactics. The core discipline is simple: know your walk away number before the conversation starts, and let data, not the pressure of a single offer, decide whether you counter, accept or hold.
Granting the Option to Purchase, the mechanics from your side
Once you and a buyer agree on price and terms, you grant them an Option to Purchase, a legal document giving them the exclusive right to buy at the agreed price for a fixed period, during which you cannot sell to anyone else or negotiate a different deal. Our full Option to Purchase guide covers the document itself in depth. The table below summarises how it works for each property type.
| Item | HDB resale flat | Private property |
|---|---|---|
| Option fee | Mutually agreed, between $1 and $1,000 | Commonly 1 percent of price, in cash |
| Option period | 21 calendar days | Commonly 14 calendar days |
| On exercise | Option fee plus exercise fee, capped at $5,000 total, forms the deposit | A further payment, commonly 4 percent, making 5 percent with the option fee |
| Document used | The official HDB prescribed Option to Purchase form | Prepared by the seller's or buyer's conveyancing lawyer |
Once granted, you are locked in for the full option period. This is exactly why the evaluation and negotiation work above needs to happen before you sign, not after.
What happens if the buyer lets the option lapse
If your buyer chooses not to exercise the option within the validity period, the option simply lapses. You keep the option fee, no different from any other buyer who decides not to proceed before committing, and you are free to remarket the property immediately with no further obligation to that buyer. This is a materially different, and much milder, situation than a buyer who exercises the option and then fails to complete. Our guide to OTP forfeiture covers what happens on the buyer's side if they exercise and then default, which carries considerably larger consequences for them than simply letting an unexercised option run out.
Winfred's Take
The offer sellers regret accepting is almost never the lower priced one. It is the higher priced one from a buyer who turned out not to be ready, financing that fell through, a timeline that quietly slipped, a condition that surfaced only after the option was granted. Ask for the In Principle Approval letter every time, even when it feels awkward to ask a keen buyer for paperwork. A buyer genuinely ready to proceed will have it, or will get it quickly. One who cannot is telling you something important before you have committed anything.
Frequently asked questions
What should I check about a buyer before accepting their offer?
Ask for an In Principle Approval letter from their bank before you accept an offer or grant an Option to Purchase. It shows a bank has already checked their income, debts and credit record and is prepared to lend up to a stated amount, which is a far stronger signal than a verbal assurance. Also confirm their preferred timeline and any conditions fit with yours before you commit.
How much is the option fee and how long is the option period?
For an HDB resale flat, the option fee is a sum between $1 and $1,000 mutually agreed with the buyer, and together with the option exercise fee it is capped at $5,000 in total, with a 21 calendar day option period. For private property, the option fee is commonly 1 percent of the price in cash, with a 14 calendar day option period being typical, though both figures are negotiable between the parties.
What happens if my buyer does not exercise the option?
If the option period lapses without the buyer exercising, you simply keep the option fee, no different from any other buyer walking away before committing. You are free to remarket the property immediately. This is different from a buyer who exercises the option and then fails to complete, which is a more serious breach with larger consequences for the buyer.
Should I always accept the highest offer?
Not automatically. A high headline price from a buyer with weak or unconfirmed financing, an unrealistic timeline, or unusual conditions can be worth less in practice than a slightly lower offer from a buyer who is clearly ready to proceed. Weigh price alongside financing readiness, timeline fit and any conditions attached before deciding.
Can I negotiate after I have already granted the Option to Purchase?
No. Once you grant the option, the price and terms are fixed for the option period, and you cannot negotiate a better deal or offer the property to another buyer during that time. All negotiation on price and terms needs to happen before you grant the option, which is why evaluating an offer properly beforehand matters so much.
Got an offer on the table and not sure if it is the right one?
Let's go through the offer together, financing readiness, timeline and conditions included, before you grant anything.
Book a free 30 minute call WhatsApp WinfredWinfred Quek is an Associate Marketing Consultant at Crestbrick Pte Ltd (CEA Licence No. L31010886H), CEA Registration No. R073319H. The information on this page is general information only and does not constitute financial, legal or investment advice. Figures reflect published rules as at 31 August 2026 and can change. This page is not a substitute for advice from your own conveyancing lawyer, who should review any offer, condition or option document specific to your transaction.