Urgent Advice On Revalue Seller's Flat

[xinyi_reiko 0]

My sis recently signed OTP on a resale flat (4 room). When she view the flat, the valuation report already expired, it was previously valued at 450k. The owner had resubmitted the valuation report, hence, she signed taking a risk that the hopefully the valuation will goes up. The agreed purchase price is 490k.

Then yesterday she gotten the valuation report that the price did not change. She does not want to fork out 40k cov, which is not part of her plan. She thought of backing out, and lose the 1k deposit, but the agent suggested to redo the valuation with other valuer.

The unit is very rare, the past 1 yr there is only 5 units transact at that area. Thats why she signed without valid valuation report.

The question is will the valuation report change if done with different valuer?

need urgent advice on this.

[therat 18]

what if the valuation drop?

Does she want to do again and again.

Valuation report need est 2 wk to do. By then, her OTP expire liao.

1k deposit lost.

If 40K COV is not part of her plan, why sign?

[xinyi_reiko 0]

what if the valuation drop?

Does she want to do again and again.

Valuation report need est 2 wk to do. By then, her OTP expire liao.

1k deposit lost.

If 40K COV is not part of her plan, why sign?

you got a point there. she is kinda 'blind' by agent's words. especially when agent was saying most likely the valuation will increase.

she actually only plans to pay around 25k cov.

am i right to say that the valuation will not differs much in 2 weeks time?

[marshmallow 0]

you got a point there. she is kinda 'blind' by agent's words. especially when agent was saying most likely the valuation will increase.

she actually only plans to pay around 25k cov.

am i right to say that the valuation will not differs much in 2 weeks time?

usually for the valuation to change quickly, there needs to be a lot of transactions in that area.

but if like what you said, 1 year only 5 transactions, 2 weeks is unlikely to change anything... and like what therat said, what if the next valuator thinks that the valuation should be lower?

[therat 18]

No one know.

Logically, yes. 2 week. How much different it can be?

especially, valuation price is depend on last transaction.

As what you had mention, that area hardly has any transaction.

Share with you on my case.

The nearby block valuation was 330k-340k during Sept 2009. (Even for unit that are in original condition, low floor, etc)

We sign OTP w/o knowing the valuation price, only agree COV 40K.

Unexpected, the valuation report come out 326k. Both of us (buyer and seller) are in shock.

We was surprise on the low valuation as we are expected 340k. We even budget 380k for this purchase.

Seller was so upset and want to call off. But the agent advice him for not doing so.

In the end , seller want to up COV to 44k. We agree.

I did a check and realize for that block, it hardly has any transaction during 2009. The last transaction was 2008. The valuation price is base on 2008 price.

[xinyi_reiko 0]

usually for the valuation to change quickly, there needs to be a lot of transactions in that area.

but if like what you said, 1 year only 5 transactions, 2 weeks is unlikely to change anything... and like what therat said, what if the next valuator thinks that the valuation should be lower?

hmm okok.. another question, since it is a 4 room flat valuation report, so i suppose to they have to base on recent 4 room flat transaction to gauge the value the flat?

yes, 5 transactions, in the past 1 yr for 4 room flats.. but lot more transactions on 5 room flat instead. I believe we cannot base on 5 room flat transactions right?

[xinyi_reiko 0]

No one know.

Logically, yes. 2 week. How much different it can be?

especially, valuation price is depend on last transaction.

As what you had mention, that area hardly has any transaction.

Share with you on my case.

The nearby block valuation was 330k-340k during Sept 2009. (Even for unit that are in original condition, low floor, etc)

We sign OTP w/o knowing the valuation price, only agree COV 40K.

Unexpected, the valuation report come out 326k. Both of us (buyer and seller) are in shock.

We was surprise on the low valuation as we are expected 340k. We even budget 380k for this purchase.

Seller was so upset and want to call off. But the agent advice him for not doing so.

In the end , seller want to up COV to 44k. We agree.

I did a check and realize for that block, it hardly has any transaction during 2009. The last transaction was 2008. The valuation price is base on 2008 price.

Ah okok.. that is a good example.

so i suppose she has to compare with 4-room flat transactions instead of overall transaction (combine of 4, 5 room & EA) at that area.

[therat 18]

Ah okok.. that is a good example.

so i suppose she has to compare with 4-room flat transactions instead of overall transaction (combine of 4, 5 room & EA) at that area.

yes. If she is looking at 4rm. she only can compare with 4 rm flat transactions.

5rm and EA are another market liao.

How to combine all into 1.

Even HDB come out HDB re-sale price unit table. also 4 is 4, 5 is 5 mah

Another example,

My husband saw a unit in my block for sale. He KPO , went and ask the agent, what is the valuation price.

Agent say 420k + 50k COV

we check the past transactions. Last record is 420k.

[joyousonline 0]

so it's a risk to buy without the valuation report??

[xinyi_reiko 0]

yes. If she is looking at 4rm. she only can compare with 4 rm flat transactions.

5rm and EA are another market liao.

How to combine all into 1.

Even HDB come out HDB re-sale price unit table. also 4 is 4, 5 is 5 mah

Another example,

My husband saw a unit in my block for sale. He KPO , went and ask the agent, what is the valuation price.

Agent say 420k + 50k COV

we check the past transactions. Last record is 420k.

okok.. thanks for sharing.. i have more clearer idea on valuation report. i will pass the msg to my sis.

[therat 18]

so it's a risk to buy without the valuation report??

Yes.

If your HLE or Bank Principal-in-approval loan is not enough to over the valuation price.

Or does not have enough cash to act on surprise.

[bepgof 20]

wahaha, old bird like you also never see valuation price & agar agar, must be very confident & cash par par liao. Sure want to buy no matter what. Tio bo?

I also very daring sign OTP on 1st view, gave $5k immediately. Asked agent stopped other coming viewers.....

No one know.

Logically, yes. 2 week. How much different it can be?

especially, valuation price is depend on last transaction.

As what you had mention, that area hardly has any transaction.

Share with you on my case.

The nearby block valuation was 330k-340k during Sept 2009. (Even for unit that are in original condition, low floor, etc)

We sign OTP w/o knowing the valuation price, only agree COV 40K.

Unexpected, the valuation report come out 326k. Both of us (buyer and seller) are in shock.

We was surprise on the low valuation as we are expected 340k. We even budget 380k for this purchase.

Seller was so upset and want to call off. But the agent advice him for not doing so.

In the end , seller want to up COV to 44k. We agree.

I did a check and realize for that block, it hardly has any transaction during 2009. The last transaction was 2008. The valuation price is base on 2008 price.

Edited February 28, 2011 by bepgof

[therat 18]

wahaha, old bird like you also never see valuation price & agar agar, must be very confident & cash par par liao. Sure want to buy no matter what. Tio bo?

I also very daring sign OTP on 1st view, gave $5k immediately. Asked agent stopped other coming viewers.....

ya. Want to buy that unit no matter what.

Location good mah. Good facing. The unit condition still quite reasonable.

Once we agree on 44K, we also sign and exercise the OTP on the same night. Gave $5k immediately.

we no need to ask the agent to stop viewer. He himself stop those viewer. B'coz we are walk-in buyer.

He will get both side commission.

He told us himself. He stop all those with agent for viewing and he claim he stop 1 walk-in buyer b'coz that buyer very yaya. He don't like him. He say he feel good talking to my husband. So he told that yaya buyer. Seller don't want to sell liao.

He say. We listen lor.

Ai yo, you don't know.. my husband set those requirement very hard to find flat arr. Then I add on mine. Make the things more jia-luck

After all the requirement filtering, only left 4 block fall under our radar.

Then not all unit in that 4 block some more.

[bepgof 20]

I loved walk-in to give ppls sudden surprise.

I particularly narrowed down to 2 particular blks only with certain high and above and the facing(no evening sun). Everyday read newspaper & internet. Seller speak teochecw (me too)like old friend. Asked only 10K COV, condition is very lok kok -that is exactly what I want. COV budgeted, reno budgeted, valuation expected. Right block, right facing, right floor, right views, can't believe why I have so good luck, saliva kept dripping down while viewing....

We(wife, mil, me)did the view at same time. MIL in charged kitchen area (if she say not ok, then no deal). I in charged if view nice or not (if view not nice, no deal). Wife in charged walking distance to mrt station( if walk till big sweat & small sweat appear then no deal)

ya. Want to buy that unit no matter what.

Location good mah. Good facing. The unit condition still quite reasonable.

Once we agree on 44K, we also sign and exercise the OTP on the same night. Gave $5k immediately.

we no need to ask the agent to stop viewer. He himself stop those viewer. B'coz we are walk-in buyer.

He will get both side commission.

He told us himself. He stop all those with agent for viewing and he claim he stop 1 walk-in buyer b'coz that buyer very yaya. He don't like him. He say he feel good talking to my husband. So he told that yaya buyer. Seller don't want to sell liao.

He say one. We listen lor.

Edited February 28, 2011 by bepgof