Agree price, then get valuation

[Volvobrick]

perhaps this is a ploy to get buyer to push down the prices on seller?

 

no need HDB intervention and prices will get depressed by market forces. if seller tries too many times to sell but all are unsuccessful, then he will be forced to relent and lower his price.

 

Yeah, definitely looks like a new measure to exert pressure to bring down resale prices further. Buyers will have to factor in a bigger buffer when they make an offer, in case the valuation is lower than expected. They will have to do their homework, be more cautious and likely offer lower prices just in case.

 

Prices will continue to soften.... until 2016 elections.

 

So sellers better sell now, and buyers better wait for lower prices!

[Darryn]

Big question still relies on what the valuation dept of HDB will do -

 

Is this transparent or is it murky? How predictable?

 

If their instructions are to be conservative, then all die, if they hold the line on valuation then how?

 

 

 

Yeah, definitely looks like a new measure to exert pressure to bring down resale prices further. Buyers will have to factor in a bigger buffer when they make an offer, in case the valuation is lower than expected. They will have to do their homework, be more cautious and likely offer lower prices just in case.

 

Prices will continue to soften.... until 2016 elections.

 

So sellers better sell now, and buyers better wait for lower prices!

 

[Wt_know]

agree $500k ... expecting valuation $490k+ (based on recent transations right?) and cov $10k or less

sekali valuation is $450k+ (lousy unit, poor condition, low floor, etc) ... then $50k must pay cash?

 

agree $500k ... sekali valuation is $550k+ ... don't know what crazy idea or he sibei like the unit

seller must be sibei dulan and bang wall (ball)?

 

i'm totally lost ... what is the merit of this new process???

Edited March 10, 2014 by Wt_know

[Lala81]

haha encourage more lowballing?

[Volvobrick]

Big question still relies on what the valuation dept of HDB will do -

 

Is this transparent or is it murky? How predictable?

 

If their instructions are to be conservative, then all die, if they hold the line on valuation then how?

 

 

 

The murkier the valuation, the more conservative the buyer will behave!

 

But I would guess each month the valuation will not vary from the previous month by more than 1-2% (which technically can add up to +- 10-20% per year).

[Othello]

haha encourage more lowballing?

 

agree.... prices will fall further FASTER

[Old-driver]

 

 

private property where got COV one?

 

Tiger Woods only pay CASH . He doesnt know what is valuation

Edited March 10, 2014 by Old-driver

[OmOm]

Yes, the information will be available online on a weekly basis (instead of fortnightly as in the current practice). The problem is with the distortion of the otherwise logical processes that a typical purchase comprises.

 

Valuation in its very essence is to provide the buyer and seller an expert opinion of its market value. This is to facilitate the two (and all other related parties in the transaction e.g. financing institution) in various stages of the transaction: price negotiation, in-principle loan approval, etc which need to happen before agreement of purchase/sale price.

 

By forcing the shift of valuation to after the establishment of purchase/sale price, it defeats (in a mocking manner) the purpose of valuation. It is no different from putting the cart before the horse.

 

 

I thought all information is in the hdb website on previous transacted price (no disclosure of cov amount)?

 

Edited March 10, 2014 by OmOm

[OmOm]

One unique thing about Singapore is that we often try not to call a spade a spade. Many believe this helps us avoid the embarrassment that tends to come with public recognition of decision mistakes and/or policy failures.

 

Our culture leads us to think that making mistakes is a big no-no and so renaming/repackaging the boo-boo or coming up with a big smoke-screen in hope of preventing mass recognition of the issue at-hand is perfectly acceptable.

 

Unfortunately the truth cannot be further from that. The reason is simple. Everyone recognises a spade when they see one.

 

Thus in the end, after much meandering and politicking, the parties involved have little choice but to admit that they have a spade to deal with. Much like the proverbial emperor who had to flee to his palace in his birthday suit.

 

All human beings make mistakes. Who is perfect? It is more important that mistakes are identified, admitted to and then quickly resolved.

 

 

agree $500k ... expecting valuation $490k+ (based on recent transations right?) and cov $10k or less

sekali valuation is $450k+ (lousy unit, poor condition, low floor, etc) ... then $50k must pay cash?

 

agree $500k ... sekali valuation is $550k+ ... don't know what crazy idea or he sibei like the unit

seller must be sibei dulan and bang wall (ball)?

 

i'm totally lost ... what is the merit of this new process???

 

[Wt_know]

just because agree selling price first before valuation means cov is not there? lol

 

soon seller and buyer and agent will come up with an agreement to rebate or top up if the agree price does not tally with the expected valuation

 

one step forward, two steps back ... why make thing so difficult???

Edited March 10, 2014 by Wt_know

[Wt_know]

how much to lowball bishan $1M hdb ... lol

 

haha encourage more lowballing?

[frenchfly]

tomorrow going to consult my valuer

Edited March 10, 2014 by frenchfly

[Jman888]

how much to lowball bishan $1M hdb ... lol

 

 

 

Depends you prefer PRC style or Thai style, PRC style you start with $200K, Thai style you start with $500K, SG style $800K

[Tigerwoods]

private property where got COV one?

sorry was not clear in my post.

It looks like there is a lot going to kill the prices of HDB.

Suddenly the game plan is to flood the market with BTOs when just 1 election ago, its asset enhancement,(frankly I wander whose asset they are trying to enhance ?)

 

If there are rules to tame the HDB COV, there should for all other housing.

And Please I'm not asking for increase duties, fees. Its time our govt start to think deeper, and not just use money in its policies.

 

It looks like suddenly the curbing methods for HDB just went non-monetary. Well, I'm surprised. Do that for the rest.

[SuPerBoRed]

This new rule is not well thought tru it seems. In theory, hdb can crash/charge the whole housing mkt by valuing every HDB unit the price some "intellectual" top dog thinks so? This is not free mkt at all.. I can understand cooling measures.. But this measure reeks of some hidden plot...

Phrase it this way, someone who wants to relocate to the same hdb area.. Can sell his place cheaply..hence forcing valuation of his own choice unit down rite?

 

This is insane...

sorry was not clear in my post.

It looks like there is a lot going to kill the prices of HDB.

Suddenly the game plan is to flood the market with BTOs when just 1 election ago, its asset enhancement,(frankly I wander whose asset they are trying to enhance ?)

 

If there are rules to tame the HDB COV, there should for all other housing.

And Please I'm not asking for increase duties, fees. Its time our govt start to think deeper, and not just use money in its policies.

 

It looks like suddenly the curbing methods for HDB just went non-monetary. Well, I'm surprised. Do that for the rest.

But hdb is meant as a form of cheaper housing for the us masses. Personally don't care abt wat they do to private hsing.. Just want a place which can easily call my own

[Wt_know]

one desperate seller sell cheap and one siao lang buy sibei expensive

agent will definitely equip themself with all kind of stats and transacted price (like they have not done enough)

 

sometime the valuation differ unti by unit due to condition, reno, layout, floor, etc

seller will try to sell their not so good unit benchmarking good unit ... lol

 

This new rule is not well thought tru it seems. In theory, hdb can crash/charge the whole housing mkt by valuing every HDB unit the price some "intellectual" top dog thinks so? This is not free mkt at all.. I can understand cooling measures.. But this measure reeks of some hidden plot...

Phrase it this way, someone who wants to relocate to the same hdb area.. Can sell his place cheaply..hence forcing valuation of his own choice unit down rite?

 

This is insane...

[SuPerBoRed]

one desperate seller sell cheap and one siao lang buy sibei expensive

agent will definitely equip themself with all kind of stats and transacted price (like they have not done enough)

 

sometime the valuation differ unti by unit due to condition, reno, layout, floor, etc

seller will try to sell their not so good unit benchmarking good unit ... lol

 

 

Agreed! Now the hdb valuers HAVE to see the physical units. Ascertain the condition of everything etc...

Owners can take oppty to be extra nice (monetary wise) to them to get the right valuation. I have no faith and place no faith in such a system

[Ferrislong]

I personally is in view of not having a *3rd party* like HDB to provide any valuation. Just the pure buyer and seller in the mix, driven on its own.

 

The numbers in a *valuation* can be skewed to an artificial level to make people feel rich.

Edited March 10, 2014 by Ferrislong