You've got the right idea about HDB resale flat valuation! Here's a breakdown of the scenarios you mentioned:
**Scenario 1: Valuation Higher Than Selling Price**
* **Cash Over Valuation (COV):** In this case, where the valuation ($260,000) is higher than the selling price ($250,000), the difference **is considered Cash Over Valuation (COV)**. You would need to pay this amount in cash to the seller on top of the amount you can use from your CPF or loan.
* **Example:**
* Selling Price: $250,000
* Valuation: $260,000
* COV: $260,000 - $250,000 = $10,000 (This amount needs to be paid in cash)
* Downpayment and loan amount would be based on the **lower** figure ($250,000 in this case).
**Scenario 2: Valuation Lower Than Selling Price**
* **No Cash Over Valuation:** If the valuation ($250,000) is the same or lower than the selling price ($260,000), there's **no Cash Over Valuation (COV)** involved.
* **Final Selling Price:** The final selling price would be negotiated between you and the seller. However, important to note:
* The maximum amount you can use from your CPF or loan will be based on the **valuation amount ($250,000)**, not the originally listed selling price.
* **Example:**
* Selling Price: $260,000
* Valuation: $250,000
* No COV (since valuation is lower)
* Final selling price depends on negotiation, but:
* Maximum CPF/loan usage = $250,000 (based on valuation)
* You might need to pay the difference ($10,000 in this case) between the final agreed price and CPF/loan amount in cash.
**Key Points to Remember:**
* **Follow the Lower Price:** For CPF usage and loan eligibility, the **lower amount** between the selling price and valuation is considered.
* **Negotiation is Key:** The final selling price can be negotiated between you and the seller, but remember the CPF/loan limitations based on the valuation.
* **COV Potential:** Be prepared for the possibility of COV if the valuation comes in higher than the selling price.
WhatsApp me at: ABLE Toh (65) 98 56 92 55 or through this link.:https://wa.me/6598569255
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