(10-03-2014, 09:05 PM)chialc88 Wrote: [ -> ]yes...
fast and furious...
we seen -$60k COV ...
so, now nobody will see this ...
they only see the transacted price and negotiate from here( lower lar, anything higher will require a X-factor)
Love Compassion
I have a need for speed...top gun
A Life not Reflected is a Life not Worth Living.
Good for you when buyer and seller expectations closer. Then easier to close.
Pardon me, but i dont understand what the reactions to this new ruling are all about. This process has always been the case for private property transactions. Sellers in private property need not get the valuation when they decide to sell. Normally what they do is look at the most recent transacted prices in the vicinity. On the other hand, buyers will only get the tentative loan amount based on bank's valuation. Everything will be re-calculated once both parties agree on the price.
I should know....... I just sold my private property.
(11-03-2014, 09:49 AM)level13 Wrote: [ -> ]Pardon me, but i dont understand what the reactions to this new ruling are all about.
I should know....... I just sold my private property.
level13, exactly the point!
This should be the norm.
You see, as of yesterday, seller always seek valuation report before selling.
So, if your valuation report is $500k.
How much are you welling to sell?
Says, $500K + 10K right?
So, everyone is focusing on justifying the $10K instead of the $510K.
Why lay? Human nature mah.
If I told you my valuation is xxx and I demand a $10K above valuation, then instead of scrutinizing the whole dollar and cents, everyone is talking about this $10k.
Why buyer should not charge this additional $10k.
Why seller wanted a lower to $5k.
Blar blar blar... in case you did not know, this 5k 10k thingy is known as COV (newer term is CUV Cash Under valuation).
Any way, to cut the story short, you're right!
Yesterday announcement aim to put the buy/sell experience into right perspective, aka just like what you had gone thru.
Love Compassion
*I will take zero comm if you'er not satisfy with my services
(11-03-2014, 09:49 AM)level13 Wrote: [ -> ]Pardon me, but i dont understand what the reactions to this new ruling are all about. This process has always been the case for private property transactions. Sellers in private property need not get the valuation when they decide to sell. Normally what they do is look at the most recent transacted prices in the vicinity. On the other hand, buyers will only get the tentative loan amount based on bank's valuation. Everything will be re-calculated once both parties agree on the price.
I should know....... I just sold my private property.
Not necessary in this order as there are no "fixed regulations" for private property transactions up to now. Someone may like your house so much, he may be willing to sign the OTP on the spot and agrees to your selling price. In this case bank valuation may be secondary to this buyer. Or he is a DIY taking the risk of losing his OTP in case he can't top up the price difference of the bank's lower valuation.
Heart Love Compassion
"*I will take zero comm if you'er not satisfy with my services "
Unquote:-
Wah!
Such powerful self declaration!
But what is the meaning of *?
Care to elaborate?
Some of us may agree to your *.
Hmm tink it may end up lots of deal fail to close if the valuation come out to be way below the buyer.seller expectation. It will be much better if hdb can give some kind of in-principle valuation so that ppl r not in the dark
(10-03-2014, 10:48 PM)Temperament Wrote: [ -> ] (10-03-2014, 10:31 PM)Freenasi Wrote: [ -> ]Negotiate price and sign OTP, then get valuation report for loan. The sequence seems wrong to me.
i feel the same uneasiness too when i first read it. Who likes to pay OTP $ without more than 99% sure to purchase (getting an approved loan from the bank first with the valuation).
If i am a seller i will have my problems too. Singapore G always like to be the first in anything in the World. i think it's O. K. to be trying to be the first but not usually at the "expense" of Singaporeans. "The daft Singaporean" as quoted by an OLDMAN.
IMHO the genius is Khaw managed to kill the psychology just as he killed the first timer tikam by imposing a 1 year period before they can tikam again
When buyer does NOT know what is the valaution, he will be extra careful becuase he does not know what valuation will the bank be lending at. if he bot at X price and valuation comes at X-$50k....
Smart move... the sequence is as intended
(10-03-2014, 10:48 PM)Temperament Wrote: [ -> ]i feel the same uneasiness too when i first read it. Who likes to pay OTP $ without more than 99% sure to purchase (getting an approved loan from the bank first with the valuation).
If i am a seller i will have my problems too. Singapore G always like to be the first in anything in the World. i think it's O. K. to be trying to be the first but not usually at the "expense" of Singaporeans. "The daft Singaporean" as quoted by an OLDMAN.
Should we reflect, why we were regarded as ''darf'' by him ?
(11-03-2014, 10:30 AM)Temperament Wrote: [ -> ]Heart Love Compassion
"*I will take zero comm if you'er not satisfy with my services "
Unquote:-
Wah!
Such powerful self declaration!
But what is the meaning of *?
Care to elaborate?
Some of us may agree to your *.
T, my dear friend.
* is to emphasize that as my customer, you will decide.
with tons of respect and gratitude to you...
Love Compassion
A Life not Reflected is a Life not Worth Living.
(11-03-2014, 12:06 PM)specuvestor Wrote: [ -> ]IMHO the genius is Khaw managed to kill the psychology just as he killed the first timer tikam by imposing a 1 year period before they can tikam again
When buyer does NOT know what is the valaution, he will be extra careful becuase he does not know what valuation will the bank be lending at. if he bot at X price and valuation comes at X-$50k....
Smart move... the sequence is as intended
While I think KBW did a lot of right things at MND, this last measure is one where they think they can have their cake and eat it too.
In a private market, it is true that people buy and sell w/o doing a valuation - but they do with reference to a set of previously transacted prices (including comparables) that reflected the full value of the targeted property (less downpayment/cash component) that could be financed by the bank. The bank's credit department, the valuers all look at the same set of prices to make the end valuation that determines the loan quantum etc. Within a certain percentage error, and knowledge of the direction, the end valuation is often predictable.
I believe the vast majority of people who turns up at the resale private market don't buy without an idea of their financial capacity (yes i know some will overstretch but that is different from saying they don't know at all) - put that two together and you won't have too many cases of someone who signed an OTP without knowing exactly his ability to pay.
However for the public housing market HDB insists on controlling the level of final valuations - which is known to be lagging the market at all times - and nobody knows exactly how this soup is made and what ingredients it is made from. So why create a situation where you intentionally deprive information that could be entirely arbitrary? And furthermore it is the one piece of information that they have conditioned the market to accept in the name of bringing an end to all the illegal cash back schemes etc in the 2000s?
As far as administrative measures go, there are good and bad ones. And usually there are unintended consequences - some we don't see today.