about resale valuation

[ilubchiu]

first time potential resale hdb buyer here. after i get the valuation from hdb hoh, am i obliged the show the valuation report to the seller? or tell them the value of their flat?

 

[vinz]

first time potential resale hdb buyer here. after i get the valuation from hdb hoh, am i obliged the show the valuation report to the seller? or tell them the value of their flat?

not obliged.

But higher or lower then the purchase price they can't do anything at this stage.

Unless u decided to back out, they can use that as verbal reference and update the next buyer, and they can based their pricing and adjust it with reference to this valuation.

-vinz

 

[popeyes]

first time potential resale hdb buyer here. after i get the valuation from hdb hoh, am i obliged the show the valuation report to the seller? or tell them the value of their flat?

No need to tell them, dont spoil market.

 

[ilubchiu]

not obliged.

But higher or lower then the purchase price they can't do anything at this stage.

Unless u decided to back out, they can use that as verbal reference and update the next buyer, and they can based their pricing and adjust it with reference to this valuation.

-vinz

No need to tell them, dont spoil market.

oic. haha. no worries. i wun tell.

 

[derong07]

first time potential resale hdb buyer here. after i get the valuation from hdb hoh, am i obliged the show the valuation report to the seller? or tell them the value of their flat?

yeah...dun hav to show or even let the sellers know. up to your own discretion. =)

 

[vroomvroom]

That's on the assumption seller doesn't know their own HDB unit valuation? Buyer certainly need not disclose, but this doesn't mean seller is clueless about their own unit valuation? Am I mistaken?

 

[qhong61]

That's on the assumption seller doesn't know their own HDB unit valuation? Buyer certainly need not disclose, but this doesn't mean seller is clueless about their own unit valuation? Am I mistaken?

U are right.

 

[derrickgoh]

That's on the assumption seller doesn't know their own HDB unit valuation? Buyer certainly need not disclose, but this doesn't mean seller is clueless about their own unit valuation? Am I mistaken?

Sounds like you got it upside down. How can the seller not know HDB's valuation for his own flat? And why would the buyer be the one disclosing the HDB valuation for the flat he is buying?

Seller will know HDB's valuation for his flat but he is not obliged to tell buyer. Buyer can do his own research or pray his agent is experienced and honest but no way buyer will know HDB's valuation of the unit he intends to buy.

So let's say he buys the flat for $500K and after that he finds out HDB's valuation is only $400K then he will bang balls but too bad. System changed liao.

That time when I bought my flat it was still old system whereby seller MUST tell buyer the valuation. That is when Cash Over Valuation came into the picture. In my case the guy wanted $50K above valuation and I told him forget it. In the end we settled on $20K COV.

 

[popeyes]

That's on the assumption seller doesn't know their own HDB unit valuation? Buyer certainly need not disclose, but this doesn't mean seller is clueless about their own unit valuation? Am I mistaken?

Seller wouldn't know the exact amt, same like buyer wouldnt know the exact amt before the valuation. The valuation report will only be reveal to the buyer.

Unless the valuation is less than the agreed price then the seller will know the amt by your cash topup.

 

[Kissmequick]

Only the Buyer can request for a valuation report from HDB after the OTP is signed and obtained from the Seller.

The Seller will not be able to know the valuation of the flat they are selling.

 

[vroomvroom]

Only the Buyer can request for a valuation report from HDB after the OTP is signed and obtained from the Seller.

The Seller will not be able to know the valuation of the flat they are selling.

Thanks for your reply. Your reply by itself is very clear..However,I get more confused if I compare your reply with derrickgoh's above.
You mentioned seller will not be able to know valuation of the flat they are selling. Derrick's reply above said they will know...so errr...who is right? Seems to me Derrick's reply sounded more legit? I am of the opinion certainly seller will know their flat valuation. That also explained my initial reply to this thread.

I shall do some reading up to understand the process of selling HDB.

 

[slashGNR]

From HDB...

Important Notes:

Only flat buyers or their salespersons can submit a request for valuation. The request can only be submitted after the sellers have granted the buyers an Option to Purchase (OTP).

 

[tinkerbot]

The official valuation can only be requested by the buyer's side after OTP..
And only with the official valuation the buyer can take loans if needed.

The seller cannot get the official valuation, maybe what they can do is to GUESS how much their property worth in the market by looking at the historical transaction etc - which maybe we should call it a predictive valuation to make things clearer.

 

[xiaobao54]

The official valuation can only be requested by the buyer's side after OTP..
And only with the official valuation the buyer can take loans if needed.

The seller cannot get the official valuation, maybe what they can do is to GUESS how much their property worth in the market by looking at the historical transaction etc - which maybe we should call it a predictive valuation to make things clearer.

Sellers can engage a valuer, at their own expense of course, if they want to get a 'official valuation' out of their own interest, the amt won't differ much from the buyers version

 

[vinz]

Sellers can engage a valuer, at their own expense of course, if they want to get a 'official valuation' out of their own interest, the amt won't differ much from the buyers version

can't do that anymore.
Only a buyer with a official OTP signed by both seller and buyer can request for one.

Officially the report is only emailed or posted to the requester (buyer).

All sellers will of course be curious about their flat valuation and will of course ask the buyer or their agents about the amount when the report is out.

Not sure why it should be kept a secret to the seller as suggested by some here. A seller can't back out even if the valuation price is 30 or 50k higher then the purchase price signed. Of course with the property downturn, this is not currently happening.

I am very sure anyone here who becomes a seller will always be curious to find out about their flat valuation and will ask the seller about it.

Past:
Seller will do a official report.
Any buyer who buy will use this valuation report to get a loan.
Price agreed above this report will be paid as cov.

Thus any buyer will know how much is the cov involved and there is no 2nd guessing.


NOW:
SELLER and Buyer estimate their own valuation / price based on recent transaction prices nearby or at the same block.

If buyer decided to buy 20 or 30k above the last transacted price, then it's assume they will be prepared to pay some cov since most of us already assume hdb will priced the valuation near past transaction.

If seller decided to sell 20k or 30k below past transaction, its also assume he is prepared to sell 20k to 30k below an expected valuation. But hdb is smart enough not do that, they can easily put the valuation at this lower price and recent transaction thus will drop, so the next seller or buyer nearby will need to use this as their reference.

Take note hdb is suppose to stop spiralling prices up, and this method is actually discretely bringing down resale flat prices.

 

[qhong61]

can't do that anymore.
Only a buyer with a official OTP signed by both seller and buyer can request for one.

Officially the report is only emailed or posted to the requester (buyer).

All sellers will of course be curious about their flat valuation and will of course ask the buyer or their agents about the amount when the report is out.

Not sure why it should be kept a secret to the seller as suggested by some here. A seller can't back out even if the valuation price is 30 or 50k higher then the purchase price signed. Of course with the property downturn, this is not currently happening.

I am very sure anyone here who becomes a seller will always be curious to find out about their flat valuation and will ask the seller about it.

U mean seller cant get a private valuer to value their own property without OTP form?

 

[vinz]

U mean seller cant get a private valuer to value their own property without OTP form?

yes you are correct on the above statement.


We talking hdb Resale Flat here.

Which private valuer not assigned by hdb is doing this report? Seller cant request for a report from hdb now if you do not know.

If not official valuation report, then how can it be taken as reference?

 

[Verbatin]

when I sold my flat, the buyer refuse to reveal the valuation for my unit.
he is a contra buyer (buy and sell at the same time). he told me when he sold his unit, his buyer also refuse to reveal the valuation price...of course as a seller, you are curious but LL lor since he refuse to reveal.

 

[Verbatin]

I think Derickgoh reply is wrong. seller wont know the valuation price
unless buyer reveal or he got his own valuer to value his flat

Thanks for your reply. Your reply by itself is very clear..However,I get more confused if I compare your reply with derrickgoh's above.
You mentioned seller will not be able to know valuation of the flat they are selling. Derrick's reply above said they will know...so errr...who is right? Seems to me Derrick's reply sounded more legit? I am of the opinion certainly seller will know their flat valuation. That also explained my initial reply to this thread.

I shall do some reading up to understand the process of selling HDB.

 

[derong07]

To clarify, just need to refer to HDB website: http://services2.hdb.gov.sg/webapp/BB31ERESALE3/BB31SMain

You all may wanna refer to the MND website as well:
http://www.mnd.gov.sg/budgetdebate2014/market_hdbresale.htm

Hope the info helps! =)


Quoted from MND website:
"Revised from 5pm, 10 March 2014

Only buyers or their salesperson can request a valuation from the HDB Panel of Valuers after the seller has granted them an OTP.

The Option period will be extended from 14 calendar days to 21 calendar days, to allow buyers more time to get a valuation during this period."



This is the new procedure taken from the HDB website:

"Submission of Valuation Requests

Buyers who are planning to take a housing loan (HDB or bank) or using CPF to finance the purchase of a resale flat must have a valid valuation.

The buyers (or their salespersons) must apply to the HDB for a valuation by the next working day* after they are granted an Option To Purchase (OTP) by the flat owners. (*Monday to Saturday, which is not Public Holiday)

The buyers (or their salespersons) have to ensure that the flat owners agree to allow the private valuers to enter the flat to carry out the assessment.

Once HDB has received the valuation request, fresh request for the same property will not be accepted by the HDB within 21 days."