Consistency Of Valuation Reports

[s8327011z 0]

Hi All,

Anyone have any idea if there's any standard that needs to abide to when different companies conduct their own valuation reports? Sometimes valuation of a particularly HDB can be extremely high while others may be below market value. Not sure if there may be any tendency where companies may derive inaccurate valuation reports for personal gains when all actually signed off with the statement of "on behalf of HDB". Does it mean that HDB does will literally evaluate and approve all valuation reports drafted out?

For sharings

[JustMortgage 0]

Hi All,

Anyone have any idea if there's any standard that needs to abide to when different companies conduct their own valuation reports? Sometimes valuation of a particularly HDB can be extremely high while others may be below market value. Not sure if there may be any tendency where companies may derive inaccurate valuation reports for personal gains when all actually signed off with the statement of "on behalf of HDB". Does it mean that HDB does will literally evaluate and approve all valuation reports drafted out?

For sharings

Generally there is a standard guide and practice that valuers will adhere to. When you mention companies deriving a valuation for personal gain, that is highly unlikely. Valuers are licensed by IRAS and to think that a firm would hike the valuation and risk losing their licence seems rather far-fetched.

There are many components to valuing a property and are as follows (not exhaustive):

- actual transacted resale prices for similar properties in the vicinity. This is a well-established industry practice and applies to both private and public housing valuation.

- overall economy

- property market sentiment

- location

- size

- age.

- renovation typically plays only a miniscule part of the valuation process.

If the valuation is overly high, financial institutions also might question the valuer and they run the risk of being striked off the approved panel if discovered of unethical practices.

Generally most valuation for HDB do not differ much. We see more valuation difference at private properties and that is also subjective.

Edited August 19, 2009 by JustMortgage

[s8327011z 0]

Hi,

Thanks for the sharing. Is there any means of counter validating the valuation report that was done up by a company?

[JustMortgage 0]

Hi,

Thanks for the sharing. Is there any means of counter validating the valuation report that was done up by a company?

Hmm, apart from asking for a re-valuation which cost you a fee, I can hardly think of any other way of invalidating the valuation done by a valuer. You have to accept that the median prices of properties have increased in the recent half year which is supporting the recent spurge in property prices.

[Valeo 0]

any idea if hacking a room wall off affects valuation? I heard that the appraiser will assess a 4 rm as a 3 rm due to a reduction of room. any truth in that?

[raincole 0]

any idea if hacking a room wall off affects valuation? I heard that the appraiser will assess a 4 rm as a 3 rm due to a reduction of room. any truth in that?

I believe the appraiser will write the report based on the floor area instead of the 4rm or 3rm and will also take similar property (if 4rm will take the 4rm in that area) for the market value. Most important is still the location of the unit and the condition of the unit.

[therat 18]

if hack away a room. 4rm flat become 3rm flat.

Don't think it will affect the valuation but will limit the buyer who are upgrading.

during house searching, saw a 4rm flat that turn a room into walkin wardrobe.

1 buyer ask the agent, where is the 3rd room.

agent close the door that separate the masterbed room and the walkin wardrobe. and reply. here, 3rd bedroom.

then buyer ask again.

need to pass by masterbed room?

agent reply, then u knock away that wall lor (which the wardrobe is build.)

if u plan to stay long, don't make any different

but if u plan to sell in future, it restrict the group of buyer

Edited August 20, 2009 by therat

[Christopher 0]

Recently i did a valuation for my bedok res 4NG. It is only 273K considering mine is a lift level high floor.. i wonder if this is high or low val?

[JustMortgage 0]

any idea if hacking a room wall off affects valuation? I heard that the appraiser will assess a 4 rm as a 3 rm due to a reduction of room. any truth in that?

We could check with our counterparties but we believe that if the flat is a 4RM, it will be assessed as a 4RM. Basically it is the reduction of 1 room to extend the size of the other bedroom. If any, the impact should be negligble.

Edited August 20, 2009 by JustMortgage

[cha11enger 0]

It is necessary for the seller to build back the wall after before the buyer takes over? Or if they have seek approval from HDB then they are not liable to build back.

[JustMortgage 0]

It is necessary for the seller to build back the wall after before the buyer takes over? Or if they have seek approval from HDB then they are not liable to build back.

Quite frankly, we're probably the right people to ask for questions pertaining to financing issues, on the other hand, let's try to look at this objectively. While we may not be right, we believe that seller should not be required to build back the wall. What you see is what you get. It seems rather silly that you own the flat and cannot dictate how your flat should be.

Edited August 20, 2009 by JustMortgage

[born_again 0]

what u see is what u get so seller dont have to built back any walls that had been hacked.

[therat 18]

what u see is what u get so seller dont have to built back any walls that had been hacked.

unless HDB tell the owner to revoke back.

Anything that hack w/o HDB approval, need to revoke back.

Eg, u saw this house, like the floorplan. Exercise OTP.

HDB sent officer come down for checking.

Spot anything against HDB rule.

HDB will ask the owner to remove it.

Owner had to remove it Or else cannot go for 1st appointment.

If happen , the thing that HDB ask to be remove is sth that you want or like.

Then too bad. YOu had to take it.

You cannot say you don't want to buy this unit anymore.

[cha11enger 0]

unless HDB tell the owner to revoke back.

Anything that hack w/o HDB approval, need to revoke back.

Eg, u saw this house, like the floorplan. Exercise OTP.

HDB sent officer come down for checking.

Spot anything against HDB rule.

HDB will ask the owner to remove it.

Owner had to remove it Or else cannot go for 1st appointment.

If happen , the thing that HDB ask to be remove is sth that you want or like.

Then too bad. YOu had to take it.

You cannot say you don't want to buy this unit anymore.

Oh yah.. talking about this. Normally how reliable is the technical officer from HDB coming down to do the inspection? Under one of the clause in the leter, it actually mention about getting our own technical inspector to conduct a check as well in addition to the one from HDB. Although that was optional, should you find out about anything illegal staffs or later HDB found out, we the buyers will be responsible for it. Though it doesnt really make much sense- who else is more experience than the HDB officers, anyone encounter this before? Did you get your own inspector?