Help On Buying Resale Flat ?

[skyy 0]

Hi,

I am new to this forum. Currently gg to buy a resale flat. I found one in sembawang.

Can anyone advise me wat to look out for before i actually offer a price to the agent? I am trying to do everything myself without any agent. I understand that i have to give a deposite first once the seller accept my pricing. How much is it?

Is there any way that i can make sure that this agent is not a scam? cos i heard news that got one agent actually run away with the deposite.

What are the things that i have to check when buying a resale flat?

Thanks for any advise!

[raincole 0]

If you paid, dun pay by cash but use chq. And make sure they record it down on the doc (OTP).

[skyy 0]

If you paid, dun pay by cash but use chq. And make sure they record it down on the doc (OTP).

Hi,

Thanks for the reply. How much is the deposite? less than $1000? So we paid them the deposite and then at the same time fill up the OTP for submission?

Thanks!

[m@mbo 0]

Hi,

Thanks for the reply. How much is the deposite? less than $1000? So we paid them the deposite and then at the same time fill up the OTP for submission?

Thanks!

it depends on the owner actually. some ask for 1K and some for 5K

[latitude 0]

ask for a proof of ownership (ie. town council letter or utilities bill) or anything bearing the owner name and address. and pay the deposit according to that name. 1st deposit is max $1k. unless u decide to exercise the option on the spot (which the agent might likely to ask you to), then it is up to $5k. i suggest that you read the HDB website's Resale Flat section if you have no agent to represent you.

Edited December 22, 2007 by latitude

[Zc31 0]

You can place a deposit of 1k. Look around the environemnt, settle ur loan. Within 14 days must exercise your option with not more then $5k.

Some ppl sign 2 forms one shot so immediate exercise of option.

[raincole 0]

The 1k is the max. You can pay less like $100. This is only a deposit for the OTP. If you exercise it, then need to pay again 5k max.

[knitez 0]

Hi everyone, appreciate some advice here.

I'm eyeing a 3-rm HDB corridor unit on level 8 and within walking distance to the mrt station. Valuation at about $185K and owner asking $35K above valuation.

Sounds like quite a sum for a 3-rm unit. Wondering if it's a ok deal. Your views? Thanks.

[zirhk3355 1]

The 1k is the max. You can pay less like $100. This is only a deposit for the OTP. If you exercise it, then need to pay again 5k max.

All are subjected to negotiation between the seller and buyer mah; the seller's considerations would be how hot the property is, any other offers, urgency to sell, other conditions, etc.

If its a hot property, do you think he will hold for 14 days until exercise option, with less than $100? If you fail to exercise, that's the only compensation he will get. Imagine if he turns away other offers after you bought the OTP, what is his loss...?

Edited January 2, 2008 by zirhk3355

[sino_74 0]

Hi everyone, appreciate some advice here.

I'm eyeing a 3-rm HDB corridor unit on level 8 and within walking distance to the mrt station. Valuation at about $185K and owner asking $35K above valuation.

Sounds like quite a sum for a 3-rm unit. Wondering if it's a ok deal. Your views? Thanks.

Seems like over e heel...but if its a well-renovated one , worth e buying.

[maine07 0]

Hi,

I am new to this forum. Currently gg to buy a resale flat. I found one in sembawang.

Can anyone advise me wat to look out for before i actually offer a price to the agent? I am trying to do everything myself without any agent. I understand that i have to give a deposite first once the seller accept my pricing. How much is it?

Is there any way that i can make sure that this agent is not a scam? cos i heard news that got one agent actually run away with the deposite.

What are the things that i have to check when buying a resale flat?

Thanks for any advise!

Hi, me also new to this forum, for price u can check the resale transactions in the HDB website for the block or surrounding blocks the transacted price for the last 2mths. Then also depend on how much u like the the flat before u offer. Do consider the reno costs involved before u offer.

And most importantly, its not very difficult to DIY all of my friends and colleagues including myself did DIY for buying and selling of our houses. The full set of procedures is at the HDB website. U can print out and understand the step by step instructions. There is also a helpline on weekdays if u have any queries.

I will strongly recommend the HDB resale seminar, after attending the 1/2 day session, really easy and helps us alot after that. Finishing the whole transaction soon. most of the things done over internet so convineient.

But 1 obstacle u may face is that the agent of the house may charge u commision if u did not specify that u will not pay before hand and usually he/she will get u to sign the commision form after u have sign the OTP and tell u its a procedure. Alot of other scenarios may happen which other forumers will share with u.

An agent will help u do all the paperwork hassle free and highlight any potential problems etc, of cos for service must pay loh, but there are many agents out there who do not charge buyers commision, u can check out with the agent for this flat u eyeing for. Recommended 1% for buyers normally.

For my friends and myself, we manage to save abot $6 to $12k in commisions each. Cos its 2% for selling and 1% for buying. So we think its worth the time and effort to go and find out to save such a huge amount which accounts to more than our 4months pay as we dun earn much.

Also not forgetting the 2 to 3% stamp duties u have to pay after u commit to the purchase. Imagine 3% commission, 2% stamp fee + cash over valuation + any renovation costs, I believe u can calculate urself better.

Just my 2cents worth, the sum saved for us has got us most of the furnishings i.e TV, fridge, aircon, sofa etc with leftover spare cash for painting whole house and a short getaway holiday with some balance left .

If u can spare the time, can DIY. If you cant afford the time, maybe can get agents who are your friends to help u and neg on the commisions loh. Hope I'm not too longwinded, just sharing the sense of satisfaction after selling and buying DIY.

Cheers and Happy CNY!

[zirhk3355 1]

But 1 obstacle u may face is that the agent of the house may charge u commision if u did not specify that u will not pay before hand and usually he/she will get u to sign the commision form after u have sign the OTP and tell u its a procedure. Alot of other scenarios may happen which other forumers will share with u.

Another scenerio is that the agent would not consider your offer if you are not paying him commission; he will push other buyers' offers to the seller instead because they agreed to pay comm. Sometimes, the other buyer's offer can even be lower than yours! But the agent won't care, because he still earn more.

Also, I never believe in one agent representing both the seller and buyer. Strictly speaking, an agent owns fiduciary duties to anyone whom pays for his/her services; so since the agent is collecting money from both seller and buyer, who's side is s/he on??

If a buyer really cannot get away from paying comm to the seller's agent, then I would suggest to call up another agent to come in. This way, the agent collects money from the buyer solely and so s/he is fully acting in your interests. And since the property is already selected, the buyer's agent does not need to do any work in finding a suitable property, go for viewings, etc, the buyer's comm definitely can be negotiated.

So if really must pay, at least pay someone who you can be sure to take care of you.