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Morning,

As you are aware, both buyers and sellers would need to secure the transaction pricing, inked the OTP before the buyers are able to apply for valuation report. From the buyer's perspective, by giving low Option fee, it would be less painful if the valuation comes out short. However, from seller's perspective, upon issuing you the Option, they do not have the ability to back out from the transaction. They will also be deprived from any further prospective viewing and better offers, at least for the 21 days. In such case, which seller would not want to secure their own interest? Furthermore, with this measure, both sellers and buyers are to weigh their financial standing before committing.

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

Hi, yes it is a common practices for buyer to pay an option fee but it could as low as even $1. But that would depends on whether would the seller be willing to accept it. Pls feel free to let me know if you need any assistance.

Regards
Aaron
 97308455 
aaronchong2774@yahoo.com.sg Read More

Dear sir/madam,

The reason behind HDB regulating the Option Money to be between $1 to $1000 is for the sellers and buyers to work out what is a right amount to commit up front. As Mike has pointed out, by giving a low option money upfront from a buyer, this will somehow still encourage the buyer to continue shopping as they only stand to lose out a small amount, while a seller needs to sit out for a period of 3 weeks before entertaining the next potential offer. As such, a balancing act needs to be carried out. Let me know if you require further advise.

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Regards,

Geryl LIM
Real Estate Director
Masters Of Real Estate
M.O.R.E Property Pte Ltd (L3010548F)
CEA Reg R014783H
Mobile: +65-81577565  /+65-92787772
Email: geryl7772@gmail.com

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