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Hi gurus,
I have a question regarding the current valuation procedure. I saw a unit that am quite keen to view. Asking price is in access of 530K but stated valuation is estimated at 570K. If a price is agreed say 540K & the valuation value is indeed 570K, does the buyer need to top-up the additional 30K or just let it lapse and loose the 1K? And what’s the purpose in putting the selling price low? Just for potential buyer to come to view & get disappointed end of the day?
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3 Answers

Ivan Ng
Replied
Hi Mr. Sham,

Is this stated valuation taken from a valid official HDB valuation report applied within the last 3 months? If not, it will not be the final valuation amount.

If 540k was agreed, and official.valuation comes in at 570k, the buyer does not have to top up the 30k, and the seller has to follow through the sale at 540k. This is selling under valuation.

Only buyers with valid OTP from seller can apply for valuation for the current resale procedures. Meaning to say agree price 1st, issue OTP, apply for valuation, buyer can decide whether to exercise OTP.

May I know which unit n town were you considering? Will be glad to assist further. Thanks!

Warm regards,
Ivan ERA
 97432395 
Ivanng10@gmail.com Read More
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  • SM
    Replied
    Thks Ivan for clearing my doubts. Still in preliminary stage of scouting around but not really firm on location yet.
Aaron Chong
Replied
Hi Sham, in the cases stated by you that should the valuation be 570k and the purchase price at 540k, then it is advantageous for you as a buyer as you need not fork out any cash. By the way, the purpose of placing low selling price normally comes from realistic and serious seller. As they know the market sentiment is on a downward trend and thus they just rather sell by making abit of profit rather than holding on to a high target and can't sell for a long period of time.

Regards
Aaron
 97308455 
aaronchong2774@yahoo.com.sg Read More
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  • SM
    Replied
    Thanks Aaron ... really appreciate yr reply.
Geryl Lim
Replied
Dear Mr Sham,

It seems that you are relatively unsure of the procedures and regulations on HDB purchase therefore I am wondering if you have an existing salesperson taking care of your purchase needs to help you sort things out and avoid any potential pitfalls and consequences of the purchase process?

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Geryl LIM
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