4 Answers

askguru expert
Hi there, thanks for writing to us on AskGuru.

We are sorry to hear about your situation.

Buyers will not know the valuation price before they proceed to paying the Option Fee.

Here is a general guide:

You will first need to pay an option fee of an amount not exceeding $1,000. After which, the seller then issues you an Option to Purchase (OTP) form after 7 days from the date of the Intent to Sell. You can then submit the OTP to HDB to request for a valuation. An assigned valuer will then inspect the HDB flat to determine its valuation. You are also given 14 days to think over the intended purchase and to check your eligibility, financing aspects and other issues such as whether the flat is affected by redevelopment or upgrading, the liability to pay for upgrading costs, levy and so on and then to exercise your option.

To exercise the option, you must sign the 'Acceptance' portion on the OTP by ensuring that the date of issue of the HDB Loan Eligibility or bank's Letter of Offer is before the date of acceptance. You must then deliver the OTP to the seller and pay the Option Exercise Fee (which is a sum not exceeding $5000 - less the deposit already paid) to you. All this must be done within the 14-day option period. Upon exercising the Option, a binding contract is formed between the seller and buyer for the sale and purchase of the flat. If you decide not to proceed with the purchase, you will lose the option fee.

We advise you to do your own due diligence based on recently transacted price of flats via HDB's link here: https://services2.hdb.gov.sg/webapp/BB33RTIS/BB33PReslTrans.jsp?fbclid=IwAR3gGOuYjgjyhCm6kgkHcjSh2OdKxELcs-kmTssf91OyWwIfqEE_jzkpehg

Hope this answers your question.

Best Regards,

Team PropertyGuru Read More


Geryl Lim
Sellers had to do up an official valuation prior entering into the OTP back then, and it was changed to the current process as it is, as back then, most transactions were done with Cash Over Valuation, and it was more like a competition of who can sell with higher COV.

With the present process of buyers applying for valuation after coming to an agreement with sellers on the selling price, this encouraged buyers to exercise prudence and do their due diligence prior to making any offers, through study of the recent transactions in the vicinity.

Purchasing a property is never a stress free process, and therefore it is important that for first time purchasers to equip themselves with the necessary knowledge through HDB seminars on the whole process or through extensive reading up or speaking to past purchasers who have successfully conducted their own purchase before, to pick up vital details and knowledge. The alternative, of course is to engage the services of a real estate salesperson to represent you in the resale transaction, where he or she can assist and advise to the best of your interest. Remember that a seller and their respective appointed agent objective is to get the best price for the property sale.

Warmest regards,
Geryl Lim
Associate Deputy Group Director
Salesperson Registration No. R014783H
Email: geryl.lim@orangetee.com / geryl7772@gmail.com
OrangeTee & Tie Pte Ltd 430 Lorong 6 Toa Payoh #01-01 OrangeTee Building Singapore 319402
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Ng Teck Chuan
You should just get an agent to assist your buying, or your mistakes could cost you more.

Feel free to contact me to discuss further.

Teck Chuan
BBA (Finance), NUS
Marketing Director
ERA Realty Network Pte Ltd
Mobile: 91374602 Read More


Robbie Chen Chee Howe

From the way I look at the situation, you went ahead with the purchase without a professional's assistance, even though it's probably the biggest purchase of your lifetime.

With the help and advice of a professional, you would have been well informed of the possibility of a COV even before the OTP. And yes, option fee and exercise fee can be negotiated too.

Right now, you have no recourse, and the Seller is eligible to forfeit your $1000 option fee as you failed to exercise the OTP. Well, take it as a lesson learnt. And I would really advise you to engage an agent to act on your behalf for your next purchase, so as to avoid all these potential pitfalls.

I am experienced and well-versed in HDB transactions. I will be able to assist you in your property plans. Should you need require further assistance in matters relating to property, please contact me at my mobile 9748 6305.

Thank you.

Best regards,
Robbie Chen
9748 6305
PropNex Realty Read More