5 Answers

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

In cases where the sale price exceeds the valuation, this is known as cash-over-valuation (COV). This portion will have to paid in cash.

The new valuation report from HDB is to ensure a fair market price and transparency for both the buyers and sellers. Only the buyer can apply for the valuation. This happens after the buyer have negotiated with the seller the selling price of the HDB flat. After paying the option fee of an amount not exceeding $1,000, the seller then issues the buyer an Option to Purchase (OTP) form after 7 days from the date of the Resale Checklist.

The buyer 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. The buyer is also given 14 days to exercise your option. The buyer will still need a valuation report even after both the buyer and seller has agreed to the price.

The resale HDB market is based on a willing buyer and willing seller basis. If the buyer still wants to proceed to buy the HDB flat at $400,000, he needs to top up $20,000 in cash. If the buyer does not want to proceed, he will lose the $1,000 option fee.

To check the market value of resale HDB flats in your area, you can click on the following link: https://services2.hdb.gov.sg/webapp/BB33RTIS/BB33PReslTrans.jsp:

For more information, please refer to the following link https://www.propertyguru.com.sg/property-guides/hdb-valuation-sales-1288

Hope this answers your question.

Best Regards,

Team PropertyGuru Read More


Ivan Ng

What happens is this. When both seller & buyer agree on 400k, seller is obligated to sell at this price, but buyer can still apply valuation and decide to back out or proceed within 21 days. If he choose to back out, seller will forfeit the $1k option fee deposit. If he choose to proceed, regardless of valuation price, seller and buyer has to go through with the agreed price of 400k.

Essentially once seller agrees to let go at a certain price, its considered sold in their perspective. Need not worry about valuation.

I have done many similar cases and would be happy to share the best approach. 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 Realtor
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Aaron Chong
Hi, I would be most glad to assist you further and pls feel free to let me know if you need any assistance. Hope to hear from you soon and have a great week ahead. By the way, if your asking is more than the valuation report, then the buyer will need to top up the difference in cash.

Aaron Chong
9730 8455
aaronchong2774@yahoo.com.sg Read More


Robbie Chen Chee Howe

Firstly, based on my experience, when you sell a flat at $400k, the valuation will only be either match at $400k or lower. I have never seen the valuation above the selling price since March 2014 when HDB changed the rules.

Next, if the valuation is below the agreed price, say $380k, then the Buyer will have to decide if he wants to proceed with the purchase. He will only be able to loan based on valuation ($380k), and if he decides to exercise the OTP, he will have to fork out $20k in COV (Cash-over-Valuation). Should he decides to not exercise the OTP, you will be free to keep the option money that he had paid when the OTP was issued.

One thing to note for the Seller, once the Seller issued the OTP, there will be no backing out of the deal. The ball will be in the Buyer's court, meaning Buyer to decide whether to proceed with the deal within the option period.

I am experienced and well-versed in both HDB and private 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. I will be happy to assess and share with you the possibilities for you in the current market.

Thank you.

Best regards,
Robbie Chen
9748 6305
PropNex Realty Read More


Tan Pei Cheng
I would be glad to explain to you.
Feel free to contact me @ 97100155
Hope to hear from you soon.
Pei ERA Read More