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Asked by Care for public low income 8 Jul 2012

Why is it here we practise the Cash above valuation - who is responsible for this creation of Cash above valuation ? Why should there be in the first place a Cash above valuation ?

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Mike Lim · Answer 1 · 2012-07-08T16:43:05+08:00

Mike Lim

Replied 8 Jul 2012

Afternoon,

COV are derived from sellers who feels that their units are worth more than its valuation. With your current status, you feel that it's unfair as you need a roof over our head but there are no new units built to suit your needs. Let's take resale units in Sunset way where there have almost no sales in 2011. It's valuation is thus much lower than those unit in CLementi Ave, which is just separated by one street. All humans are selfish. But when you have your own property and wants to sell it to move on, would you want to sell it at market valuation when you know that your unit is worth more?

Like I have said before, with lower income, you can still approach HDB for new BTO units which are more affordable for you.

ALl the best.

Regards
Mike Lim
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AA

Care for public low income

Replied 9 Jul 2012

Thanks Mike . Great of you to take your time to reply . If that is your answer - maybe take what it takes to Have a Valuation - and how the valuation figures comes by . Then after - compare and see whether what logic to COV and valuation . For example - seller will say the amenities are near , reno , high floor etc... Valuation comes good price - companre to their neighbour from teh same bloc- low floor , no reno - price differs from 30k to more . So , my information is that COV will be told at that point of time of sales - sellers agent will repeat by saying the amenities are good , high floor , reno etc.... All these are from the valuation report - SO who CREATED this COV ?? Valuation was created PREVIOUS in 1990's because for to know how much a LOAN can be taken - am I right , comments if any . Then after then , some agents have made it as such from Valuation with a plus COV ... Take a look at the early days of valuation for the reason and NOW - same goes for the COV?

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