5 room Hdb resale

[millienium_bear 0]

The flat is around 30 years old. I like the unit a lot when I first step in . 

The unit is in very original condition, and the first owner passed away in 2014. It is vacant till very recent to be ordered to dispose by HDB. (The agent and surviving kin told us, and I'm wondering how come they manage to hold on more than 6 months upon the owner' passing.)

Consider the surrounding and convient:-

- totally unblocked view and strong windy. More greenery. Very high. Almost top floor.

- about 10-20min to LRT, a few bus stops, shopping centre. 

Last transaction around this unit is $470k. The surviving kin is asking for $550k. I feel they want COV despite original condition.

a few questions on my mind

- how long to dispose of unit when the owner is no longer around. 

- how to bring up the question whether they are in urgent to sell 

- is it possible to ask $100k under their asking price? I'm looking at $450k. From what I understand, many surviving kin or owner might ask for COV for high floor despite poor condition.

i'm quite worried that the agent might play around the offer price, and buy time for a better offer. The agent asked me whether I hold private properties when making enquiry before viewing. 

Please share tips on nego, etc beside my questions on my 2nd viewing. 

[salavanun 0]

30 years original conditions 20 mins to LRT or MRT?. .No selling point in future. last transaction 470 and asking 550??

if its me I will just walk away. Even if I like the unit very much I will still walk away. how to make an offer of 100k below asking?

based on the info u have given a reasonable price is 430 to 450 max. make an offer to the agent (firm) don't show the agent that you are very keen and start looking at other units. its buyers market now.

my 2 cents

regards

Edited March 1, 2016 by salavanun

[mattchan 0]

Remember last transaction includes COV. it is not the valuation price. 

Sounds like a unit at the mature estate. Becos it is very old, you may want to consider how you should negotiate. A 5 room can be very costly in a mature estate as they are usually huge. 

If the mature estate is a single digit distict, it is inevitable to pay COV. Do work out how much Cash you really have before offering. 

[dukebluedevil 1]

the thing is with this new system of last transacted prices, you'll never know. Part of valuation process will also include last transacted prices.

Go with the last transacted for similar flats (floor, age, location) - that's your best bet I feel.

It is a buyers' market, I got my flat at 70k below valuation. Which only means that the valuation was based on previously sky high HDB resale prices. So even if i could have the valuation before hand, it wouldn't have helped me much. 

All the best.

[millienium_bear 0]

Thank you for valuable replies! 

Went for 2nd round viewing before deciding how much to offer 2 days ago.

I just pass up the unit that the owner still insist a higher offer after making an offer including reasons of being bad condition & not so convenient . Above last transacted price.

Strange enough, the agent has taken down the listing after I made an offer yesterday. 

[rayenxh 0]

I have quite a similar experience. 4A seller requesting for 460k appox 40k above comparing last 2 transacted units(both sold ard 410k in Apr 16), flat is more than 30 yrs old and distance to Mrt is more than 0.8km away. It is a mid floor corner unit door to door. I offered 410k as per last transacted but was told by seller agent offer is too low, reason being unit was well maintain, owner renovated the kitchen ,both  toilets and broken marble floor for more than 10 years ago. My buyer agent also agreed and ask me to try increase the offer to 445k as previously someone offer 440k was rejected.

I’m amused that my agent also agreed that this unit is worth at least 35k more than previous units sold in this exact flat.

What are your views?

[millienium_bear 0]

1 hour ago, rayenxh said:

I have quite a similar experience. 4A seller requesting for 460k appox 40k above comparing last 2 transacted units(both sold ard 410k in Apr 16), flat is more than 30 yrs old and distance to Mrt is more than 0.8km away. It is a mid floor corner unit door to door. I offered 410k as per last transacted but was told by seller agent offer is too low, reason being unit was well maintain, owner renovated the kitchen ,both  toilets and broken marble floor for more than 10 years ago. My buyer agent also agreed and ask me to try increase the offer to 445k as previously someone offer 440k was rejected.

I’m amused that my agent also agreed that this unit is worth at least 35k more than previous units sold in this exact flat.

What are your views?

hmm, i feel that your agent is siding with the seller's agent for some reasons (perhaps benefits) instead of representing you. depends on how much you can afford to pay. do take your time to consider the seller's request or look for another one. Buyer's market this time. good luck

[rayenxh 0]

57 minutes ago, millienium_bear said:

hmm, i feel that your agent is siding with the seller's agent for some reasons (perhaps benefits) instead of representing you. depends on how much you can afford to pay. do take your time to consider the seller's request or look for another one. Buyer's market this time. good luck

Yup totally agreed that my agent is not representing my best interest. I already emphasized that i had given a reasonable offer that is tag to the past transacted. He really think i should be the goondu to offer above 30k for nothing

He also told me he had help me to get the seller or seller agent to agreed on $500 option fee or do a mock valuation then I can decide whether to continue exercise the purchase.