Have You Encounter This?

[lewsinmin 0]

Hi All,

My wife and i are now currently in a situation that needs your advice as both of us felt stuck in between. What happen is that prior to buying our new place in Bishan, the valuation of the flat has already expried (it was $365k then). So we actually offered a price ($385k) not knowing what will be the new valuation (it can go up or down). Subsequently, the current owner agrees to the price and proceed to seal the deal.

Weeks has passed and the new valuation is out at $405k. So that means we sealed the deal at below valuation. Now at the same time we realise that the other agent did not inform the current owner of the new valuation price nor the current owner acquire their agent the new valuation price. Is this weird?

This seems weird to me. Upon enquiry with our agents, they say the current owner is happy to be able to seal the deal already and they will tell the current owner of the new valuation price during the 1st appointment. Pls note that on the day we sealed the deal, they also bought another unit and the reason why they are willing to sell to us according to our agents is that they are not comfortable to seal the deal on their unit unless someone bought their unit 1st.

This is unacceptable to both of us as we felt that it is the agent's duty to inform the current owner of the new valuation price instead of revealing to them at the 1st appointment. Our agent's concern is that by revealing them now, it will jeopardize the whole transaction and makes things difficult as the owner may disgruntled and may ask for higher price or even don't turn up for 1st appt. Our concerns is that it is rightful that they know about this issue so that during the 1st appt, they will not be caught off guard.

Though there are concerns on my part that after knowing the valuation now, the current owner can simply don't turn out for 1st appt and the deal will lapsed causing even more inconvenience to us as we need to enagage lawyer (possibly) to handle the case either to make them comply with the agreement or recover the OTP deposits, both of us feel that ethically, the agents should let the owners know.

Anyone with experience care to advice what is the best approach to this case? Thanks

[icky 0]

I'm not very clear about your situation now...

have both parties assigned the OTP? if so, you do not have to worry about anything, if not, how come u can arrange for 1st appointment?

[Zc31 0]

If you're going for ur 1st appt soon, it means you've exercised your OTP and both are engage in a legally binding contract.

The valuation for your OTP at that time was based on 365k i assumed and there's nothing wrong legally, that's how i interpreted it.

Worrying concern is seller backing out, which seems like a case of moral ethics by your agent.

Techincally a lower valuation is beneficial to you and if i wer ein your shoes, i'll just let it go through. However if seller contests the valuation, then you have to pinpoint your agent who did not do a good job. Complain to his agency and worst measure, make him compensate for any liquidated damages.

I haf also been in a nasty situation before, different nature from yours. Currently processing my 2nd unit. Hope all goes well too.

[donut88 1]

Hi All,

My wife and i are now currently in a situation that needs your advice as both of us felt stuck in between. What happen is that prior to buying our new place in Bishan, the valuation of the flat has already expried (it was $365k then). So we actually offered a price ($385k) not knowing what will be the new valuation (it can go up or down). Subsequently, the current owner agrees to the price and proceed to seal the deal.

Weeks has passed and the new valuation is out at $405k. So that means we sealed the deal at below valuation. Now at the same time we realise that the other agent did not inform the current owner of the new valuation price nor the current owner acquire their agent the new valuation price. Is this weird?

This seems weird to me. Upon enquiry with our agents, they say the current owner is happy to be able to seal the deal already and they will tell the current owner of the new valuation price during the 1st appointment. Pls note that on the day we sealed the deal, they also bought another unit and the reason why they are willing to sell to us according to our agents is that they are not comfortable to seal the deal on their unit unless someone bought their unit 1st.

This is unacceptable to both of us as we felt that it is the agent's duty to inform the current owner of the new valuation price instead of revealing to them at the 1st appointment. Our agent's concern is that by revealing them now, it will jeopardize the whole transaction and makes things difficult as the owner may disgruntled and may ask for higher price or even don't turn up for 1st appt. Our concerns is that it is rightful that they know about this issue so that during the 1st appt, they will not be caught off guard.

Though there are concerns on my part that after knowing the valuation now, the current owner can simply don't turn out for 1st appt and the deal will lapsed causing even more inconvenience to us as we need to enagage lawyer (possibly) to handle the case either to make them comply with the agreement or recover the OTP deposits, both of us feel that ethically, the agents should let the owners know.

Anyone with experience care to advice what is the best approach to this case? Thanks

dun worry abt it.

you all have excesised the OTP contract with the earlier price. you got nothing to worry about.

let the agents deal with the seller abt the new valuation their own way. Agents will, with all means, follow thru the deal coz they want their comissions.

You as the buyer will just act blur and keep yr mouth shut. And during yr 1st appt, just act surprised if the seller ask u about the new valuation. just say that you also just knew abt the new valuation and looked helpless.

you may think that its unethical and blah blah..... well, u cannot be 100% ethical in everything u do in life.

[lewsinmin 0]

dun worry abt it.

you all have excesised the OTP contract with the earlier price. you got nothing to worry about.

let the agents deal with the seller abt the new valuation their own way. Agents will, with all means, follow thru the deal coz they want their comissions.

You as the buyer will just act blur and keep yr mouth shut. And during yr 1st appt, just act surprised if the seller ask u about the new valuation. just say that you also just knew abt the new valuation and looked helpless.

you may think that its unethical and blah blah..... well, u cannot be 100% ethical in everything u do in life.

Thanks for the advices. Yes. The OTP has been signed by both seller and buyer. I should not be worried in a sense. The only concern is that the seller, upon learning about the new valuation price, might decide to not to turn up for the 1st appt.

But even with that, it seems that i have the upeer hand since the price has been inked on the paper with their full knowledge. I only wise that i do not need to go through any legal proceedings.

[donut88 1]

Thanks for the advices. Yes. The OTP has been signed by both seller and buyer. I should not be worried in a sense. The only concern is that the seller, upon learning about the new valuation price, might decide to not to turn up for the 1st appt.

But even with that, it seems that i have the upeer hand since the price has been inked on the paper with their full knowledge. I only wise that i do not need to go through any legal proceedings.

no worries.

you will be safe from any legal proceedings. let the seller find out himself abt the new valuation.

update us after yr 1st appt.

[icky 0]

dun worry abt it.

you all have excesised the OTP contract with the earlier price. you got nothing to worry about.

let the agents deal with the seller abt the new valuation their own way. Agents will, with all means, follow thru the deal coz they want their comissions.

You as the buyer will just act blur and keep yr mouth shut. And during yr 1st appt, just act surprised if the seller ask u about the new valuation. just say that you also just knew abt the new valuation and looked helpless.

you may think that its unethical and blah blah..... well, u cannot be 100% ethical in everything u do in life.

hi, donut, i just want to ask.... at the 1st appt, will the owner find out the new valuation price on the spot even if the agent did not tell him before? at that moment, does he still have chance to step out?

[donut88 1]

hi, donut, i just want to ask.... at the 1st appt, will the owner find out the new valuation price on the spot even if the agent did not tell him before? at that moment, does he still have chance to step out?

the seller will know. the HDB will print out the financial details and it will state the flat valuation somewhere.

at that time, it depends on how the seller react lor.... they will be in front of the HDB officer.

90% chance, they will not do anything, since they are already there and gone so far in the resale transaction.

if the seller backs out at that time, then its up to the agents to "psycho" the seller.

the buyer will just pray hard that the seller wont change their mind about selling.

[icky 0]

the seller will know. the HDB will print out the financial details and it will state the flat valuation somewhere.

at that time, it depends on how the seller react lor.... they will be in front of the HDB officer.

90% chance, they will not do anything, since they are already there and gone so far in the resale transaction.

if the seller backs out at that time, then its up to the agents to "psycho" the seller.

the buyer will just pray hard that the seller wont change their mind about selling.

will legal action be taken if the seller back out at that time? OTP sign already... so it is somewhat a legal document....

[donut88 1]

will legal action be taken if the seller back out at that time? OTP sign already... so it is somewhat a legal document....

Legally, yes. since OTP already signed.

So the agents have to remind the seller about the legal issues then.

[coffee - kohi 0]

at the end of the day, are you comfortable with it?

If your conscious is acting, i will advise taking the flat, not worth feeling bad about it.

You will not know what happen that day, so worrying for it doesn't help. At most they void the TOP, compensate you or whatever, that is up to them, also not up to you to worry.

Just go with the flow, i guess, and decide if you are comfortable taking the flat....valuation also take into consideration of the current selling price, so is more of the property market "bubble" (or not), so to a certain extent it is till fair to the seller.

Valuation is still pretty subjective......