2 Answers


Good day to you!
I’m Daniel Tan from Huttons.

The current valuation method is introduced to ensure that the whole transferring process to be more transparent and fair.
In current procedure, valuation is only requested by the buyer after issuance of the OTP.

So for example, the final mutual agreed selling price is S$800K.
Valuation only fetch S$600K.
This will means that the bank or HDB will only loan up to a maximum of S$600K. The balance S$200K will be regarded as the previously know "COV".
If the buyer is still comfortable with the S$200K cash, the buyer can exercise the OTP and purchase the unit. However in the case that the buyer does not wish to continue with the purchase, the buyer can walk away with the S$1,000 or less initial deposit being forfeited by the seller.
The seller will not be forced to sell at S$600K, the S$800K price holds, however the buyer will then decide to purchase or not.

To ensure that you and the buyer can get smoothly negotiate on the final price, it is recommended to get an agent to advise on the rough valuation before negotiation. Or you can also access HDB website to get a list of previously transacted prices in your estate for comparison.

Looking to seek your unit? Please feel free to contact me if you need assistance.
Hear from you soon.

Any other queries?
Please always feel free to contact me for a non-obligated discussion on how I can assist you with your real estate needs.

Have a great day ahead.

Best Regards

Daniel Tan
Huttons Asia Pte Ltd
 (+65) 94775100 
daniel.tck@outlook.com Read More

Only buyers with valid OTP issued by sellers can apply for valuation, and yes a HDB appointed valuer will visit the house, who will give an overall assessment of the place and then taking into account all factors (of unit and surroundings) give a professional valuation figure.
All buyers who are using CPF or hdb/bank loan need to apply for valuation.

If you have agreed 800k on price, but valuation comes in at 600K, the difference is the COV buyer has to pay. He may or may not exercise the option to proceed with the sale. But if buyer exercises the option, seller is obliged to sell at 800K.

If priced agreed 550K, valuation comes in at 600K, there is no COV, and seller is obliged to sell at 550K still if buyer exercises the option.

To ensure the price your interests are protected, it is best to work with a realtor who can advise the comparable transactions nearby and facilitate the negotiation process so that you can achieve your desired selling price.

May I understand your housing requirements further? Thanks and hope to have the opportunity to work with you soon.

Warm regards,
Ivan ERA
Ivanng10@gmail.com Read More