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Hi, I would like to know if placed an offer price of 450K for a resale flat then the valuation price is 500K. What would be the final purchase price of the flat? Is it my price?
Understand that as long as the offer price is lower than valuation price i will not be required to fork out cash, correct?
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3 Answers

Hi,

Yes if agreed price 450k, valuation comes out at 500k, then the transaction will go through at 450k if buyer decides to exercise the OTP. This is considered buying under valuation, no COV is required.

May I have more info and requirements about your plans so to make better recommendations? Thanks and look forward to value-add to your housing plans.

Warm Regards,
Ivan Ng ERA ASAP
(ASk Anything Property)
Proactive. Sincerity. Feedback.
SMU BBM (Finance), Magna Cum Laude

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  • NZ
    thank you for your answer.. i just wanted to know in regards to the pricing, which amount will the buyer be required to pay is it the offer price or valuation price.
Hi,

Congratulations! Although it is not rare but it is still uncommon to purchase a property below valuation.

The final purchase price shall be $450k. No additional cash is needed other than the option (Up to max of $1k) and option exercising fees (up to Max $5k - deposit), that you may or may not have pay.
As long as:
(1) Your CPF is sufficient to cover the 10%-(option + option exercising fees) if you are applying HDB loan,
(2) Or 5%(cash) - (option + option exercising fee) + 15% (CPF or cash) if applying bank loan.

But HDB might query the transaction on why the transacted price is much lower than valuation to ensure there are no foul play.

Hope the above answer to your main concerns, but if there are more queries, please feel free to contact me at 90110636  , or email: ling.ck7@gmail.com if more information is needed.
I'll be glad to assist.

Best regards
Ling CK
 90110636 
ling.ck7@gmail.com

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  • NZ
    thank you so much for your response.. hoepfully i get to settle my house smoothly..
Good evening,

Since your offered pricing is lower than valuation price, you are not require to fork out additional cash for the purchase. The transaction price on the OTP stands.

Regards
Mike Lim
 96929209 
m52i@yahoo.com
ERA

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  • NZ
    Hello, thank you for your response. Appreciate it :)

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