Revaluation Of Flat

[ilove6969 0]

Hi all,

I am new here. Had met up with some problem on my repurchase of flat so hoping for some advices. Sorry my story might be a bit long as need to explain wat the problem.

We had paid deposit and signed OTP for our resale flat in early Mar. Send to HDB for excerise but was rejected by the HDB cos the seller had not get the final approval letter to sell the flat. Currently we are waiting for the final approval letter. The excerise date expired too cos we signed it as 14 days to excerise the OTP.

Then another problem occurs, the valuation reports expired in mid Mar. Now we are told to revalue the house. Based on current market, we are not sure if the valuation will go up or down. Our agreed price was 330K (15K above valuation based on the old valuation report). But if the second valution prce drops? It will be a disadvantage to us cos we have to pay more COV. If it goes up then of cos we are more than happy abt it. Then there will be problem arise.

My agent had ask the seller to re-sign the OTP (Page 4 again becos of the 14 days which had expired) but we have not signed yet cos we are worried that the approval letter from HDB may not be able to finalise.

1) Can we sue the seller in this case if the seller didnt manage to get the final approval letter after all this ding dong?

2) Wat is the views of the current market value for CCK 5 room flat if we re-value again?

[zirhk3355 1]

I am not too sure about suing the seller, but I am quite sure you can have a case against the agent/s for negligence. Its their duty to perform due diligence on the seller/buyer to make sure they are eligible to sell/buy.

[vinzy 0]

1) Can we sue the seller in this case if the seller didnt manage to get the final approval letter after all this ding dong?

Not that seller do not want to sell to you, just that nobody bothered to check the Minimum occupation period (MOP). You cant sue the seller based on this.

2) Wat is the views of the current market value for CCK 5 room flat if we re-value again?

Valuation will go up slightly.

What I suggest you do is to request a valuation report in your name now, and for the valuation report to be posted directly to your house. Re-sign or do a proper OTP with the approval date before your OTP date.

Inform the agent that if the valuation goes down by a certain amount ($1k -5k up to your comfort level), then you will not go ahead to purchase the house as you do not have to cash on hand. If valuation remain the same or goes up, you will go ahead. In this way it's fair to you.

good luck,

vinz

Edited March 28, 2008 by vinzy

[zirhk3355 1]

Erm for the pricing, I duno about you but I would re-negotiate with the sellers that since its their error, could they agree to a new price of $15K + new valuation?

Of course if the valuation goes up, then seller will benefit, but you safeguard yourself from paying more COV in case the valuation goes down.

So its a win-win situation...

[ilove6969 0]

Thanks for your advices. Will ask our agent to negotiate with them. So far as of now, the seller had actually push all the wrong to HDB, saying that is HDB fault for all this.

If we decide not to go ahead with the purchase after the 2nd valuation report is out, can the seller sue us for breaching the OTP?

[Junkay 1]

actually the agents has got a large part to play in this blunder. In fact, if you paid the deposit then the seller has to return the deposit to you no?

If you do like the flat so much then tell the seller its valuation + 15k. Be aggresive this time you already got makan once.

This is the first time I have heard of this. The agent is a goondu.

[lundun1968 0]

Think the valuation will increase, you may ask to set the buying price at 330K irregardless of the valuation, so if the valuation went up, you get to pay lesser COV.

Juz my 2 cents worth of thot.

[coffee - kohi 0]

Hi

If the seller is not trying to take advantage of you and is a reasonable person(s), he will return you the deposit if you reject this deal. I guess they have to a certain extent breach the integrity and loses your trust.

I am thinking, can you "sack" the agent and deal with the owner direct/ hire any agent? since the agent is not performing his job and it is a bit "sickening" to pay him the comission right?

Based on the news paper, there is an increase in valuation which causes the COV to be lower, but i believe this is on average, so it might not apply to you. But chances are you might get to pay a lower COV which will to your advantage. If you want me to place my bet, i will choose to set a fix amount - $330K, as per lundun1968 stated.

You can also go to HDB website to have a look at the recent resales price to have a guage at the pricing. I belive the pricing includes COV so it might not give you the true picture, but at least a feel of the current market price.