Hi,
Yes, if the agreed purchase price exceeds HDB's valuation, the difference, commonly known as Cash Over Valuation (COV), must be paid in cash. CPF savings and housing loans cannot be used to cover this difference.
However, I would be cautious about offering $30,000 more simply because there are other interested buyers.
Before recommending any offer, I believe an agent should first conduct a proper analysis of recent comparable transactions, taking into consideration the floor level, remaining lease, condition, location and other relevant attributes of the flat.
This would help establish a reasonable price range and assess whether the seller's asking price is justified.
It is also important to understand that HDB's valuation will only be available after the seller grants the Option to Purchase (OTP). The eventual COV may therefore be higher or lower than anticipated.
My approach has always been to help buyers make informed decisions based on market evidence rather than pressure from competing offers. Ultimately, the price offered should reflect both the property's value and the buyer's financial comfort level.
May I know whether your agent has shared any recent comparable transactions or explained the basis for recommending the additional $30,000?
If you would like a second opinion, I would be happy to share some insights on recent 5-room HDB transactions around Bishan.
We have also recently released an HDB market report covering resale price trends and the market outlook. Feel free to reach out if you would like a copy.
Geryl Lim
9278 7772
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