Agree price, then get valuation

[Jman888]

a guide only ... the actual valuation is still upmost important

upstair vs downstair ... price already difference

imagine when you commit ... there was no downstair transacted and the seller use upstair price with minus $2k?

 

 

 

The transaction also disclose which floor and use that as a guide lor.

 

I think soon there would be much cov for the seller.

[Wt_know]

can MCF scholar enlighten me ... the new process is to reduce COV or increase COV or agree price include COV but cannot be reported as COV?

 

simi taichi ???

Edited March 10, 2014 by Wt_know

[Jman888]

Look at the tampines DBSS, now just reached 5 years can be sold in market but no buyer

 

Who want to be carrot head to pay $800k for a unit where they bought it at less than $400K?

[Kusje]

Same as before, if you dun have cash would you go commit $100 cov since cov cannot pay by loan?

 

Base on the daily update transacted price (as mentioned under the new rule), you get a bench mark of what price the neighboring units were sold at, hence as a guide for the valuation and cov would be like.

 

Daily updated doesn't mean accurate as of today because by the time the OTP has been exercised and the formalities completed and informed to HDB, a month or two could have passed already.

[Ronaldling3217]

this is a domino effect... the valuation will follow closely to last transaction. so last person will pull the next person down... unless u dont want see house. so this time agent dont need show valuation, he just show this last transaction price of this area from this APPs in mobile phone then can offer price. buyer sure be safer side, offer 20k and below off the value, using the excuse of scare the value dropped. but if there is a close transaction that a seller submit 3-5 days ahead with the price dropping alot then god bless the one that is behind and just submitted the OTP form. This is the trap to seller. those asking for COV can wait long long liao.

[Wt_know]

my question is still ... can seller refuse to sell after seeing the valuation

 

1. ask the buyer to top up

2. refuse to sell

3. now that valuation had come up ... seller know what price to sell and of course recover the $1k or $2k that he/she had lost

 

huat ah!

Edited March 10, 2014 by Wt_know

[Jman888]

this is a domino effect... the valuation will follow closely to last transaction. so last person will pull the next person down... unless u dont want see house. so this time agent dont need show valuation, he just show this last transaction price of this area from this APPs in mobile phone then can offer price. buyer sure be safer side, offer 20k and below off the value, using the excuse of scare the value dropped. but if there is a close transaction that a seller submit 3-5 days ahead with the price dropping alot then god bless the one that is behind and just submitted the OTP form. This is the trap to seller. those asking for COV can wait long long liao.

 

Buyers will be happy cos no more $100k-$250k crazy cov

[Wt_know]

huat ah ... will the $1M bishan hdb owner sell at $750K?

 

Buyers will be happy cos no more $100k-$250k crazy cov

 

Edited March 10, 2014 by Wt_know

[Nzy]

Another scholar idea really out of this world.

If buyer offer and seller agreed on 500k valuation turn out to be 400k like that buyer can no longer back out?

 

If buyer offer and seller agreed on 500k and valuation turns out to be 600k can the seller back out?

 

Now they throw the ball back to the buyer and seller.if buy or sell flat lugi don't blame hdb.

Or did I missed out anything?

 

I think this way will prevent buyer from offering too high. Now some people with alot of cash don't mind to offer 100+K COV. With this now they have to be more careful just in case the valuation is lower than what they expected lo. Then the next person to buy will also offer lower after looking at the price of the previous transactions just in case.

Edited March 10, 2014 by Nzy

[Jman888]

don't think so la ... do you mean the $1M bishan hdb owner will sell at $750K?

 

 

If the valuation is $800k but they ask for $1 mil, one transaction in queens town with cov of $250k mah.

 

Again there is always some cash rich guy willing to pay, but if majority are more conscious, they would wait lor, then sell will hold lor. Isn't that the original intention of having a house and keep it?

[Wt_know]

buyer wait and see

seller don't want to sell

agent eat grass liao ...

propnex must be having a 11th hour meeting now

wahahaha

[Nightkids]

 

 

 

 

workable?

 

 

sure cocked up.....

[Throttle2]

Not sure about HDB but private property often agree pricing liao then valuation.

 

Becos price = valuation , for many of the banks lending during the mood to lend.

 

Thats why i fully agree when one of the forummers say valuation is bulls**t. It is.

[Chucky2007]

Rule should apply to all properties

private property seller has never had to be provide some shitty hdb approved valuar report...

[Pmet]

my question is still ... can seller refuse to sell after seeing the valuation

 

1. ask the buyer to top up

2. refuse to sell

3. now that valuation had come up ... seller know what price to sell and of course recover the $1k or $2k that he/she had lost

 

huat ah!

 

Just like PTE prop, buyers can back out, sellers can't. This rule is to whack sellers who have been stubbon with the price using valuation to squeeze buyers. COV just touched 0 but it will take a long time for valuation to drop. I think this rule is meant to accelerate the drop in price, not volume. Watch my next post.

[Pmet]

...continuing my last post

 

In event of a valuation mismatch buyers can opt out and just forfeit $1k downpayment, whereas sellers have to LPPL and take it as it's a fair deal even as with private properties. This is what the OTP was originally planned for, to protect buyers as they have the most to loose. The sellers are obliged to exercise SNP and if he fails to do so, the buyer may seek legal mediation (sue the seller). This question brings up the revelation that many ppl on this thread have had no experience in buying/selling properties. I've been through many transactions in my experience in property investments and I can tell you that the rules are meant to bring down the valuation, which was originally meant to hold prices, at a faster pace.

Ask yourself why was valuation implemented, and for HDB who's in control? You might think that a private company is doing the valuation but after searching you would be shock to know that all valuations eventually come from or are approved by HDB. Yes, HDB has been holding up resale prices for so long as sellers can use this tool to influence their buyers which will result in stable prices accross the HDB segment. Why does HDB always falls or increases after PTD properties (PTE properties always take the lead)? This is because HDB is controlling the valuation and that acts as a pillar for sellers and affects the offers made by buyers.

You might think that PTE properties have valuations too right? Yes but it's difference and assigned by the banks which explains why some banks give you a higher valuation while some lower. It's also illegally possible to bribe the valuator giving your home a higher valuation (ahem!).

Now, let me come back to the new HDB rule:

1. This will bring about faster devaluation because in a dropping market, the sellers have no clue how much their flats are valued at. The previous transaction could already be sold at under valuation (CUV) and if it's based on that, the seller having no clue whatsoever, would base his at the same or around the same. The buyer, knowing that it's a falling market, would base it lower. Hence, without a controlling valuation set by HDB, the buyer could be paying CUV on top of an already undervalued figure. All else equal, the revse could be true for a booming market but read my next point below.

2. Now you might think that it might help boost the current market right? Wrong. Firstly, the market is in a decline. Secondly, even in a booming market, buyers will be able to back out in event that the valuation is much lower than his offer (COV offered is too high). The shroud around the valuation in this case should not accelerate an already booming market. Buyer makes offer, and back out (forfeit $1k) if valuation is too low. The COV will never be as exaggerated as CUV as in my first point above (#1). Now you see why I said this rule is meant to punish sellers and not buyers?

Of course, there may eventually be rules to protect sellers as well in the future but definitely not now when all other CMs are still in place. This should be the last CM to go IMO.

Edited March 10, 2014 by Pmet

[Icedbs]

The transaction also disclose which floor and use that as a guide lor.

 

I think soon there would be much cov for the seller.

 

Problem is, how do you guide the renovation factor of that house based on past transaction record? The transaction record will not tell you how all the previous houses were renovated.

 

In the past, valuation would have taken that renovation into account. Now is a guessing game.

 

In anycase, the guys who will be hit are the agents. They will have a tough time negotiating and even if they think the deal is sealed, there is always a chance either side will wanna back out because later valuation proves too high or too low. Or bank loan could not go through.....all these kind of time consuming issues for agent, banks, seller, and buyers.

 

Whoever who comes out with this idea is crazy. I hope they have a fair process for "backing out" because I think that's going to happen a lot.

 

 

[Pmet]

 

 

Whoever who comes out with this idea is crazy. I hope they have a fair process for "backing out" because I think that's going to happen a lot.

 

As I've said above, this is to whack the seller so any additional form of backing out for the seller is out.

Edited March 10, 2014 by Pmet