(08-03-2014, 07:50 PM)lvpierre Wrote: [ -> ] (08-03-2014, 03:01 PM)thefarside Wrote: [ -> ]Question 1: who is the end-approver of ALL HDB valuations issued by these so called market valuers?
Question 2: does this end-approver has the desire to stuff people who are trying to sell their flats in this market?
1: it has to be signed by a qualified valuer. The valuation is just a guide for banks to determine loan (for resale flats), individuals looking to get a sense of the property value and institionals (e.g reits). For individuals buying a flats, the transacted price is usually based on the buyers/ sellers negotiation skills and generally mkt condition. It can be above or below valuation. If the final price is well above the valuation price, the buyer may hv a problem to get the loan amount above valuation from bank ( bank may not be willing to loan more than that) and have to cough out with more cash.
2: don't understand your question. But generally they wouldn't try to con people. Banks, hdb usually have a list of qualified valuation firms. Bankers usually give a call to valuers to get an indication, some valuation firms may be willing to match the figure given by the banker but ultimately there are still limitations, e.g. Values must be justified and for residentials, you have find a few comparables properties (same area and transacted recently and adjust accordingly, floor, tenure, view, size etc)to justify the value. If all the recently transacted prices are going down, then the valuation would have to come down.
For question 2, from what I understand for private property, the valuer whose valuation is used by the bank for disbursing the loan will be paid a flat fee (I was told $500). So these valuers have an incentive to justify the highest valuation possible since this is what the banks want, i.e. disburse more money to make more interest.
Is my information correct? I hope its not the same for HDB.
(10-03-2014, 10:24 AM)grubb Wrote: [ -> ] (08-03-2014, 07:50 PM)lvpierre Wrote: [ -> ] (08-03-2014, 03:01 PM)thefarside Wrote: [ -> ]Question 1: who is the end-approver of ALL HDB valuations issued by these so called market valuers?
Question 2: does this end-approver has the desire to stuff people who are trying to sell their flats in this market?
1: it has to be signed by a qualified valuer. The valuation is just a guide for banks to determine loan (for resale flats), individuals looking to get a sense of the property value and institionals (e.g reits). For individuals buying a flats, the transacted price is usually based on the buyers/ sellers negotiation skills and generally mkt condition. It can be above or below valuation. If the final price is well above the valuation price, the buyer may hv a problem to get the loan amount above valuation from bank ( bank may not be willing to loan more than that) and have to cough out with more cash.
2: don't understand your question. But generally they wouldn't try to con people. Banks, hdb usually have a list of qualified valuation firms. Bankers usually give a call to valuers to get an indication, some valuation firms may be willing to match the figure given by the banker but ultimately there are still limitations, e.g. Values must be justified and for residentials, you have find a few comparables properties (same area and transacted recently and adjust accordingly, floor, tenure, view, size etc)to justify the value. If all the recently transacted prices are going down, then the valuation would have to come down.
For question 2, from what I understand for private property, the valuer whose valuation is used by the bank for disbursing the loan will be paid a flat fee (I was told $500). So these valuers have an incentive to justify the highest valuation possible since this is what the banks want, i.e. disburse more money to make more interest.
Is my information correct? I hope its not the same for HDB.
Yes, some valuation firms are willing to match the indication as they need these bankers to get biz. But as I said there are limitations, as these values need to be justified and they don't want to risk their career as well so it wouldn't be an amt that is too 'out'.
For HDB (I mean New flats and taking hdb loan) there is less incentive to do so as HDB has their list of valuation firms. For resale and bank loan, it is the same private.
News: OTP needed before request for HDB Valuation report.
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Valuers adjust the valuation by 5-10% upwards or downwards. Depends
on your purpose.
Whether the banks will accept is another thing. If banks are not willingly
to lend, may not take the valuation.
From 5pm onward, Don't need to do valuation.
Take note: You need to have a buyer first before you can do a valuation report!
:-)
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(10-03-2014, 01:15 PM)chialc88 Wrote: [ -> ]News: OTP needed before request for HDB Valuation report.
(10-03-2014, 01:33 PM)chialc88 Wrote: [ -> ]From 5pm onward, Don't need to do valuation.
Take note: You need to have a buyer first before you can do a valuation report!
Hi - this is news to me. Care to tell the source? I can imagine that this extremely popular measures will result in a raft potential buyers rushing to hand in a $1k option fee to find out what the valuation of their target flats will be.
ai yo... I am a property agent mah...
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??? if it is true, then contravening Official Secrets Act. If not true, anyhow spread rumours..
Thanks OPMI,
Better put standard disclaimer.
All info shared in this forum is for your reading purposes.
You need to consult expert before making your decision.
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(10-03-2014, 01:55 PM)chialc88 Wrote: [ -> ]ai yo... I am a property agent mah...
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Disclaimer:
All info shared in this forum is for your reading purposes.
You need to consult expert before making your decision.