How Do You Decide Your Cov Price...

[crystalhuang 0]

Hi Everyone,

I'm pretty new here.. was looking for some guide regarding the COV thingy.

Had been house huntings for a few weeks, and finally just met the 'right' house last weekend, it's a resale HDB flat, and the seller asked for 45K COV. The house itself is already 415K in value.

Done some research and homeworks last night, realized that the same type houses on that area, averagely sold with the total pricing of 380-420K.

Even if i bought that house, I would still need to do renovations on both toilets.

actually how do you decide the amount that you are willing to pay for your COV? isn't Valuation supposed to include the pricing of it's location, condition, building's age, etc? I am willing to pay about 30K. but the sellers said, it's NETT. so… heart a bit discourage now..

any kind advice please?

[Velarine 0]

Hi

It's not easy to find a "right" house with the "Wow!This is it!" delighted kind of feeling when you enter the house for house viewing right. If you really like the house and you gonna stay in the house for long term, say 10years down the road and you keep thinking of the house after you left the place, then I think you should really consider the house. Of course there are other factors to consider such as location wise, it is convenient with many amenities around, it is within walking distance to MRT, bus stop etc. If you don't mind location far from MRT, you can go for house which is further away say have to take feeder bus to central but with lower COV. Or will you buy a house which is of a better location, more convenient, near to MRT but with higher COV? Normally house which is located at a more convenient location near to MRT will attract more potential buyers. So need to think of long term too. For me, I will prefer a location which is within walking distance to MRT to save time on travelling and can have more beauty sleep

[crystalhuang 0]

Hi Velarine, thanks for your comment

Yeaa… it's not easy to finally found the right house especially when my heart feels some kind of attachment when I enter that house for the first time.

but in total, if we paid 460K for the house, it actually really would be too extreme, considering that on that same blocks, some just sold in last 2 months for about 20-40K cheaper.. and my husband works in IT field, so his mindset tends to be very 'logical' thingy. he said, even though we can go and follow the request of the seller, for him it's just too much, coz for him, the Valuation price, is supposed to be the Actual price, which is acknowledge by banks and by HDB (which somehow he managed to make me agree with that kind of thoughts hahhahaha); so to give the seller another 30K as the COV, for him is already a lot, but since he knows that I really like the house, he doesn't mind. and also for him, COV is just to make the seller happy…

and like you said.. if the location far from MRT, COV would be lower.. but don't you think, if there's 2 houses on sell at the same area just different 2-3 blocks, one nearer to MRT, and the other one is further, isn't the further one also would have lower valuation price?

and I also have a few friends that works in real estate companies, they said, even the news now showing that COV is not as extreme as it used to be.. So i am in super dilemma now

Edited August 7, 2012 by crystalhuang

[May_dream1 14]

You are right, the valuation already taken into consideration the location, the condition of the block + flat, the last transaction price etc etc. COV is basically the "want" of the seller. Who don't want to sell as high as they can get? that is why they are asking for 45k COV.

I also think that anything more than 30k is a lot. we always say that buying a flat have to depends on feel, if you really like it and you sure you like it, then don't think so much. go for it! dont go for it cos you are fatigue from viewing flats.....

You say that average selling price was $420k to $440k but how long ago was this? if its a long while ago, then price would have increase. COV is not as bad as previously but i still think its quite bad. no reno and very old condition also asking for $40k COV.

[rickoveron 0]

its a simple supply and demand... seller can ask for any sky-high cov, but if there is no party keen to pay, it will just be wishful thinking. also beware that sometimes it could be the real estate agent hiding the bids from the seller, in hope of pocketing a higher commission.

[crystalhuang 0]

You say that average selling price was $420k to $440k but how long ago was this? if its a long while ago, then price would have increase. COV is not as bad as previously but i still think its quite bad. no reno and very old condition also asking for $40k COV.

that 420K-440K is from the same block with that house. I did some researches, and those are sold in May 2012 and July 2012 only..

you can check here: http://services2.hdb.gov.sg/webapp/BB33RTIS/BB33PReslTrans.jsp

(This e-service enables you to check past 1-year resale transacted prices. The objective is to assist potential resale flat buyers and sellers in making informed decisions, taking into account the prevailing trends in the HDB resale market.)

yea.. we went to several houses, conditions ultra super bad, totally need whole house renov, also building's age already 38-42 years old, asking for 70-80K COV.. superrrrr

I know… I guess, for now, I really shouldn't think so much about it.. I know that 30K is a lot already… and that's the amount that we are happy and comfortable to spend on… my husband also tried to tell me last night, said, if it's our house means it's ours. No point buying it, if my husband might gonna have some kind of regret feelings later on... (:

[crystalhuang 0]

its a simple supply and demand... seller can ask for any sky-high cov, but if there is no party keen to pay, it will just be wishful thinking. also beware that sometimes it could be the real estate agent hiding the bids from the seller, in hope of pocketing a higher commission.

Most probably you are right, because I have also tried to track back.. the agent had been trying to advertise and to sell that house for more than a month.

[May_dream1 14]

that 420K-440K is from the same block with that house. I did some researches, and those are sold in May 2012 and July 2012 only..

you can check here: http://services2.hdb.gov.sg/webapp/BB33RTIS/BB33PReslTrans.jsp

(This e-service enables you to check past 1-year resale transacted prices. The objective is to assist potential resale flat buyers and sellers in making informed decisions, taking into account the prevailing trends in the HDB resale market.)

yea.. we went to several houses, conditions ultra super bad, totally need whole house renov, also building's age already 38-42 years old, asking for 70-80K COV.. superrrrr

I know… I guess, for now, I really shouldn't think so much about it.. I know that 30K is a lot already… and that's the amount that we are happy and comfortable to spend on… my husband also tried to tell me last night, said, if it's our house means it's ours. No point buying it, if my husband might gonna have some kind of regret feelings later on... (:

ok, if its just recently (fyi : i always check resale prices using that as well but whatever you check on, i won't know cos what you copy is just the website, not what you check on ie i don't know area you check on)

ya, some sellers still have high expectation thus the high COV. they might not be urgently trying to sell too so can delay until the right buyer comes along. if your hubby will regret, then look for others.

[crystalhuang 0]

Ahhhh sorry.. I was only telling you, that I knew those transactions based on the listings from that website (:

and btw, thank you very much for your comments! And, yea will keep on house-huntings for now.. ;D

[dragonnite 2]

Ummm, you may want to check on why the owner is selling or how fast they need the money from this sale. Basically, find out if there are any reasons that u can use to lower the COV.

In my case, they wanted to stay on in the house for a couple more months so I let them stay on rent-free in exchange for a decrease, and also pointed out the fact that I start servicing my loan even before I take possession. Got about $20+k decrease in COV.

So see if you can find reasons like this lor. If not, then I would say budget is more important - look around some more. I looked at over 10 units before I found mine.

Good luck !

[Batman 0]

If u can, go private. That 30K can easily be the 1% option fee for condos!

Just my point of view.

[crystalhuang 0]

wawww Dragonnite, thank you very much!

Even though I am already feeling a bit more relaxed now (not as depressed as yesterday) - and ready to let the house go ( by keep on telling myself - "if it's ours, it's ours"), this is indeed a very good idea, definitely worth to try

we have viewed 16 houses! but not gonna loose hope, parents also said.. house is like soulmate (unless it's for investing) khekhekhe , sometimes got money, somehow also can't buy.. yet, sometimes money is tight, in the end, also can buy the 'destined' house.

If u can, go private. That 30K can easily be the 1% option fee for condos!

Just my point of view.

Thanks, Batman.. but after long discussion back then with husband, we prefer to have an HDB flat as our first home... private maybe later lar... in the next 6-8 years.. after got kids maybe hahhahhaha...

[yuy 0]

If is 10 mins walk to mrt, low floor and original condition, what do you think is an appropiate cov to pay for a

1. 3rm flat

2. 4rm flat.

Area = Yio Chu Kang/Tampines

TIA!

[May_dream1 14]

wawww Dragonnite, thank you very much!

Even though I am already feeling a bit more relaxed now (not as depressed as yesterday) - and ready to let the house go ( by keep on telling myself - "if it's ours, it's ours"), this is indeed a very good idea, definitely worth to try

we have viewed 16 houses! but not gonna loose hope, parents also said.. house is like soulmate (unless it's for investing) khekhekhe , sometimes got money, somehow also can't buy.. yet, sometimes money is tight, in the end, also can buy the 'destined' house.

its ok lah.. only 16 flats. i have view over 100 when i was looking for condo to buy. then gave up cos view so many and non suitable.

so keep on looking and don't give up. the right one will come along!

[May_dream1 14]

If is 10 mins walk to mrt, low floor and original condition, what do you think is an appropiate cov to pay for a

1. 3rm flat

2. 4rm flat.

Area = Yio Chu Kang/Tampines

TIA!

i can tell you what i know:

3rm in yishun, not near mrt (got to take feeder for 4 bus stops) - cov paid by my friend $35k. 3rd floor and quite original condition. - bought early this year

4rm near YCK - cov $40-$50k for those blocks 6xx