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Hi,

If your agreed price is 400K, valuation comes in at 380K, the difference of 20K will be Cash over Valuation you have to fork out to the seller. Your loan will be based on 380K.

Whereas if your agreed price is 400K, valuation comes in at 420K, transaction will go through at 400K. There is no COV, and loan is based on agreed price of 400K.

If you wish to avoid overpaying for the price, it is best you work with an agent, who can analyze a suitable entry price, clarify all your doubts and worries, negotiate and do all the necessary paperwork for you. The value you get outweighs the service fees significantly.

Thanks and may I have the opportunity to value-add to your housing plans further?

Warm regards,
Ivan ERA
 97432395 
ivanng10@gmail.com
www.ivanng10.com Read More

Evening,

Based on your case, you will need to prepare $20k cash, payable to HDB which will later be paid to your seller. This is due to the fact that bank or HDB will loan you to max of 80% or 90% of the valuation. Hence anything agreed transaction pricing above the given valuation price will have to be prepared separately.

FYI
Mike Lim
 96929209 
m52i@yahoo.com
ERA Read More