Being Ripped Off?

[livecn 0]

I've signed OTP for a flat. Asking price 380K (Valuation 345 + 35).

But I've checked the recent resale transaction prices in hdb.gov.sg and found the same area sold at most at 360K (that's even higher floors than mine).

Am I being ripped off here?

My first appointment is in March. Can I ask for re-valuation for the flat now? And if the re-valuation turns out to be even higher price, can I choose to keep the old one?

Thanks in advance for your comments!

[tatlee 0]

prices may have moved up. resale prices cannot tell the quality of flats.

usually, it is willing buyer-willing seller. last transacted can be used as guide only. BTW, why u never check first before exercise OTP.

Yes. Can ask for valuation again. Just pay HDB. Valuation may go up or down. If go down, you pay more cash over valuation lor. Sorry, man. HDB loan based on latest valuation.

Look like u never do homwwork before committing to a purchase.

[ogre 0]

is it true that the hdb loans is based on latest valuation? i once heard tht you can opt to use the older valuation if your new one turns out to be lower as long as the older one is still valid. anyone able to confirm?

[tatlee 0]

is it??? confirm with HDB is the best. no heresay.

[applefreak 1]

hi livecn, valuation is based on a lot of factors

the higher flr units could be cheaper if it's in original condition, all wiring and piping requires changing etc

i believe when you agreed to the selling price, you had felt that the unit is worth the price right?

once you sign the OTP, you agree to pay the agreed sum for the unit (regardless of how much COV)

the only difference a higher valuation will make is you can take more loan and pay less cash

[kunning 0]

not to take the HDB transacted price as 100%. In my 1 year of flat hunting, I've come across agents & their sellers requesting to under-report the transacted price so that the seller can keep more cash.

Indecent & illegal.

[jeddie 0]

it is true that u can use any valuation report as long as it is valid at time of submission. I just checked with the HDB officer last week. As i also submitted a revaluation for selling my flat.

[zirhk3355 1]

I've signed OTP for a flat. Asking price 380K (Valuation 345 + 35).

But I've checked the recent resale transaction prices in hdb.gov.sg and found the same area sold at most at 360K (that's even higher floors than mine).

Am I being ripped off here?

My first appointment is in March. Can I ask for re-valuation for the flat now? And if the re-valuation turns out to be even higher price, can I choose to keep the old one?

Thanks in advance for your comments!

HDB resale transactions are not up to date; as you know prices will fluctuate, esp in this buoyant season. Not forgetting also the possibility of false declaration of transacted prices, although govt is clamping down, they cannot catch everyone and every case of false declaration does affect the average price in one way or another.

BTW, past transactions also play a part in valuation; so I doubt your valuation will vary alot. I believe, compared to the other transactions you saw, the reason for your (presumably) higher price is because of the owner asking for higher COV, not the valuation price.

Next, even if you have a lower valuation, what are you going to do with it? You had already signed the OTP; will the seller agree to lower the asking price?

Edited February 16, 2008 by zirhk3355

[sino_74 0]

not to take the HDB transacted price as 100%. In my 1 year of flat hunting, I've come across agents & their sellers requesting to under-report the transacted price so that the seller can keep more cash.

Indecent & illegal.

no doubt its indecent & illegal as long both parties agreed.

its so-called 'under table' that was pratice long ago.

dont be suprised now still exist.

might benefit buyer in one way or another cos u'll fork out less COV.

it is true that u can use any valuation report as long as it is valid at time of submission. I just checked with the HDB officer last week. As i also submitted a revaluation for selling my flat.

btw valuation report valid for 3mths

[livecn 0]

Thank you all for the detailed replies.

I did view more than 15 flats with different agents in the same area and considered their prices, locations, and conditions, and finally fixed on this one. The price for this one, as compared to other flats I viewed, is reasonable, especially with its conditions.

That's how I made my decision on signing the OTP.

However, today I just heard that the resale price listed by HDB _includes_ the COV. That's why I feel paying too much.

With your comments, I can see: 1. The listed resale prices might be manipulated. 2. Latest prices might not be reflected in the HDB list. 3. No one said I'm paying too much.

Now I feel much better =)

Thanks again!

[waileong 0]

However you feel, a deal is a deal, unless you want to lose your OTP money. There's no point checking how much other people paid for their flats after you buy, you just run the risk of buyers' remorse.

[vvix 0]

I've signed OTP for a flat. Asking price 380K (Valuation 345 + 35).

But I've checked the recent resale transaction prices in hdb.gov.sg and found the same area sold at most at 360K (that's even higher floors than mine).

Am I being ripped off here?

My first appointment is in March. Can I ask for re-valuation for the flat now? And if the re-valuation turns out to be even higher price, can I choose to keep the old one?

Thanks in advance for your comments!

The "recent" resale transaction prices listed in HDB at any one time is always 2 months old. No point comparing your transacted price with those prices transacted two months ago.

Your first appointment is in March, go look at the resale transaction price list again in April. By then you should find your own transacted price being listed. Then this will be accurate comparison.

[Topspin 1]

I presume you have paid about $1000 for your OTP only and it is usually valid for 2 weeks?

If you think that the sale is absolutely not favourable, you may just forgo your $ and let it lapse 2 weeks later. The next issue is whether you can find a better substitute.

[sillyme 0]

I did view more than 15 flats with different agents in the same area and considered their prices, locations, and conditions, and finally fixed on this one. The price for this one, as compared to other flats I viewed, is reasonable, especially with its conditions.

That's how I made my decision on signing the OTP.

As long as you paid a fair value for your flat, it does not matter how much the others were being sold.

[hello88 2]

As long as you paid a fair value for your flat, it does not matter how much the others were being sold.

yup, because condition of the flat also makes a difference. One wld have to spent alot on renovation if the condition of the flat makes u wanna puke..hahaha.

Purchase price on HDB Resale Transactions is inclusive of Valuation + COV but realised that some people thought its only valuation price. We would never know the exact valuation of a flat unless u get hold of the report from the agent/seller. HDB only published the median valuation price for various estate quarterly.