Advice Needed on 3RM Resale Situation

[CondoSeeker2012]

Dear all,

Buyer is looking to buy a resale 3RM in Ang Mo Kio. House is in move-in condition, high floor. Buyer likes place v much. Buyer is young couple with limited budget, first timers.

Valuation is 340k.

Offered 370k,30k COV but agent wants 380-385k, 40-45k COV.

AMK 4Q2012 3RM median COV is 27k

Any advice?

[leesg123]

Dear all,

Buyer is looking to buy a resale 3RM in Ang Mo Kio. House is in move-in condition, high floor. Buyer likes place v much. Buyer is young couple with limited budget, first timers.

Valuation is 340k.

Offered 370k,30k COV but agent wants 380-385k, 40-45k COV.

AMK 4Q2012 3RM median COV is 27k

Any advice?Look for alternative. away from AMK.

[eng81157]

Dear all,

Buyer is looking to buy a resale 3RM in Ang Mo Kio. House is in move-in condition, high floor. Buyer likes place v much. Buyer is young couple with limited budget, first timers.

Valuation is 340k.

Offered 370k,30k COV but agent wants 380-385k, 40-45k COV.

AMK 4Q2012 3RM median COV is 27k

Any advice?

just walk away if it's beyond budget. why can't they look for something within their reach?

[leesg123]

Dear all,

Buyer is looking to buy a resale 3RM in Ang Mo Kio. House is in move-in condition, high floor. Buyer likes place v much. Buyer is young couple with limited budget, first timers.

Valuation is 340k.

Offered 370k,30k COV but agent wants 380-385k, 40-45k COV.

AMK 4Q2012 3RM median COV is 27k

Any advice?Should not even offer COV in the first place.

[CondoSeeker2012]

Should not even offer COV in the first place.

Can please ask why?

[leesg123]

Can please ask why?the latest valuation already considered the previous COV.

Buy a run down unit, at valuation, use the $30k to reno nicely.

[CondoSeeker2012]

the latest valuation already considered the previous COV.

Buy a run down unit, at valuation, use the $30k to reno nicely.

Thanks for the advice, problem is, run down units have similar valuations, differing only by $5k. ceteris paribus

[thomastansb]

Don't be too fussy. There are many units with $0 to $5k COV one. But expectation have to be realistic also. Low floor, no mrt, no amenities lor. Look outside AMK. If you think the unit is good, many people will think so too.

Why don't look at something near city? Like telok blangah. A bit old but location is much better than AMK. COV should be lower for those older flats also.





Thanks for the advice, problem is, run down units have similar valuations, differing only by $5k. ceteris paribus

[FREDDIE]

Should not even offer COV in the first place.


If you are the owner you sell at Valuation or......?:tsk-tsk:

[phantom_opera]

Cross Island Line just increased the COV expectation for AMK :tsk-tsk:

[august]

Find out if seller is trying luck/testing market or genuine seller? also how long the unit has been on the market.

[eng81157]

the latest valuation already considered the previous COV.

Buy a run down unit, at valuation, use the $30k to reno nicely.

on a technical note, do valuers consider COV (that are often undeclared)? i thought valuations are based on transcated values of similar units in the vicinity

[danguard]

on a technical note, do valuers consider COV (that are often undeclared)? i thought valuations are based on transcated values of similar units in the vicinity

Transacted values would reflect the cov as well since its total quantum paid - at least that's what the valuation report states typically I think .... But mature and popular estates will definitely have a cov component which is the norm ... A quick check of property forums for HDB around that vicinity will illustrate the general pricing I believe

[danguard]

Find out if seller is trying luck/testing market or genuine seller? also how long the unit has been on the market.

Might not be a good gauge as seller could have strong holding power and not really in urgent need to sell and willing to wait for desired price to hit before selling off .. A few colleagues of mine whom desires to upgrade to private property prefers to patiently wait then to rush to sell off

[CondoSeeker2012]

In this case, what factors should one consider when deciding whether to meet seller's demand of additional 10k COV?

Gut feel would say to walk away and look for another, but have to note that after 9 3RM property viewings, said property was only one worth considering.

Remember, a 40k COV represents 11.76% increase over the valuation.

[august]

Might not be a good gauge as seller could have strong holding power and not really in urgent need to sell and willing to wait for desired price to hit before selling off .. A few colleagues of mine whom desires to upgrade to private property prefers to patiently wait then to rush to sell off

these are not motivated sellers, as buyer i would not bother as i will be paying high and be the carrot head.

[CondoSeeker2012]

these are not motivated sellers, as buyer i would not bother as i will be paying high and be the carrot head.

Can I ask how to then to get a feel if one is paying high or not?

HDB does not list specific units or floors when showing transacted prices. Doesn't take into account condition of house as well. Median COV a good gauge then?

[Arcachon]

High or Low depend on the buyer.

A PC owner will find it low when buying HDB because of the rent yield.

A first time buyer will find it high regardless of the resale price.

HDB valuation is a tool use by them to control the price of HDB and not reflective of the market. They issue licence for valuer once a year to value HDB, if they don't value to what they want the following year they will not be in the game.

The valuation for an HDB flat is carried out by one of the HDB's panel of valuers.

http://www.hdb.gov.sg/fi10/fi10321p.nsf/w/BuyResaleFlatValuation?OpenDocument

[chiaberry]

Can I ask how to then to get a feel if one is paying high or not?

HDB does not list specific units or floors when showing transacted prices. Doesn't take into account condition of house as well. Median COV a good gauge then?

It's very difficult to know and nobody can really tell you how.

Hold firm to the offer already made and ask the agent to inform you if there are any higher offers. Then you can consider if you want to up the offer.

3 room flats are not in plentiful supply so it tend to be a seller's market.

[CondoSeeker2012]

It's very difficult to know and nobody can really tell you how.

Hold firm to the offer already made and ask the agent to inform you if there are any higher offers. Then you can consider if you want to up the offer.

3 room flats are not in plentiful supply so it tend to be a seller's market.

Thanks for the advice.

In my case, the agent representing buyer has informed that is confident of closing deal if COV is raised from 30k to high 30s, near 40.

Given that, would buyer be making a sensible choice by going with it?

[august]

Thanks for the advice.

In my case, the agent representing buyer has informed that is confident of closing deal if COV is raised from 30k to high 30s, near 40.

Given that, would buyer be making a sensible choice by going with it?

seller asking 40-45k COV, this means if u offer high 30s or 40k will get it.
u offered 30k, but what is the firm maximum u can go? anything above your max u shld walk away.

[chiaberry]

Thanks for the advice.

In my case, the agent representing buyer has informed that is confident of closing deal if COV is raised from 30k to high 30s, near 40.

Given that, would buyer be making a sensible choice by going with it?

This is one tactic used by buyers agent to try and close the deal quickly.

Tell him/her you are offering a cheque for the original price NOW (to show that you are serious). If he says, cannot accept, ask him to inform you when there are higher offers. If he hasn't got back to you to tell you there are higher offers by now, there is likely to be no higher offer YET. Which means that it is not so sizzling hot (by now should have closed the deal if really really hot).

Beware though. Sometimes agents "fake" a higher offer to make you gan cheong so that you immediately offer more. They would go to great lengths to make the sale.

It really depends on how badly you want the unit. If you want it badly, then should offer a bit more and see how. Usually in such a situation, they would settle at around 35K (mid-way between buyer's and seller's expectation).

[leesg123]

This kind of pricing you can get a 3 rm hdb flat at kallang mrt there, with unblocked view of downtown, rather than crappy view of AMK neighbourhood.

[CondoSeeker2012]

This is one tactic used by buyers agent to try and close the deal quickly.

Tell him/her you are offering a cheque for the original price NOW (to show that you are serious). If he says, cannot accept, ask him to inform you when there are higher offers. If he hasn't got back to you to tell you there are higher offers by now, there is likely to be no higher offer YET. Which means that it is not so sizzling hot (by now should have closed the deal if really really hot).

Beware though. Sometimes agents "fake" a higher offer to make you gan cheong so that you immediately offer more. They would go to great lengths to make the sale.

It really depends on how badly you want the unit. If you want it badly, then should offer a bit more and see how. Usually in such a situation, they would settle at around 35K (mid-way between buyer's and seller's expectation).

Thanks again for the advice, my thoughts largely too.

Is the agent representing seller obligated to inform buyer's agent on new offers?

[chiaberry]

Thanks again for the advice, my thoughts largely too.

Is the agent representing seller obligated to inform buyer's agent on new offers?

No, not obligated. But they would usually do so if they want to push for higher prices from all interested parties. After all, it's in their seller's and their own interest to do so. In my experience, the seller's agent does inform of new offers. Dunno abt other forum members' experience. Esp today when the rest of the market is so quiet....I think the seller's agent will have plenty of time to keep you updated if you expressed interest.

[eng81157]

Transacted values would reflect the cov as well since its total quantum paid - at least that's what the valuation report states typically I think .... But mature and popular estates will definitely have a cov component which is the norm ... A quick check of property forums for HDB around that vicinity will illustrate the general pricing I believe

i believe it's otherwise, simply because when bank loans are computed, it does not include the COV portion.

[CondoSeeker2012]

No, not obligated. But they would usually do so if they want to push for higher prices from all interested parties. After all, it's in their seller's and their own interest to do so. In my experience, the seller's agent does inform of new offers. Dunno abt other forum members' experience. Esp today when the rest of the market is so quiet....I think the seller's agent will have plenty of time to keep you updated if you expressed interest.

Thanks, unfortunately the unit is sold. Worst, the buyer had to find out through another agent.