13-03-2014, 10:52 AM
ST Forum - 13/3/14
There are 3 articles and all 3 writers are very concern on Monday's changes:
1. Be cautious with new rules on flats
2. Sellers at a disadvantage
3. Many uncertainties with new system
***** my thought
Q: Can seller get valuation from private company?
- I think should be ok. The restriction only applies to HDB valuator. However, the private Valuation Report most likely will be ignored by the buyer.
Q: if the valuation is lower than agreed-on price, can the seller ask the buyer to top up the difference in cash?
- I think the agreed-on price is contractual and its final. There is no need to ask the buyer again.
Q: Can the buyer back out of the deal?
- I don't think so. However, buyer can always choose to let the OTP expire after 21 days (new)
Q: Even private ppty buyers and sellers get indicative valuation, so why do HDB home buyers and sellers have to guess at the expected valuation when committing to a price?
- Definitely, the seller can no longer get the exact valuation report from HDB directly. He should still be able to get indicative valuation from private valuer. This, however, will not serve the purpose for the buyer.
Q: If the actual valuation were to have a high COV which is not in favour of buyers, buyers can choose not to exercise the OTP. But, what's the recourse for sellers?
- Seller got to forfeit the option $.
Q: Many may have to walk away from the deal and forgo the option $. I hope the new system can be tweaked to allow valuation to take place before OTP
- I don't know what to say. I imagine that the valuation of HDB will quickly
move up(for those flats in high demand to reflect the currently lagging valuation)
or move down(for those cheap flat seller still clinching on a extremely high valuation report).
Once the valuation reflected the market price accurately, the number of OTP expiration will be lesser.
Love Compassion
A Life not Reflected is a Life not Worth Living.
There are 3 articles and all 3 writers are very concern on Monday's changes:
1. Be cautious with new rules on flats
2. Sellers at a disadvantage
3. Many uncertainties with new system
***** my thought
Q: Can seller get valuation from private company?
- I think should be ok. The restriction only applies to HDB valuator. However, the private Valuation Report most likely will be ignored by the buyer.
Q: if the valuation is lower than agreed-on price, can the seller ask the buyer to top up the difference in cash?
- I think the agreed-on price is contractual and its final. There is no need to ask the buyer again.
Q: Can the buyer back out of the deal?
- I don't think so. However, buyer can always choose to let the OTP expire after 21 days (new)
Q: Even private ppty buyers and sellers get indicative valuation, so why do HDB home buyers and sellers have to guess at the expected valuation when committing to a price?
- Definitely, the seller can no longer get the exact valuation report from HDB directly. He should still be able to get indicative valuation from private valuer. This, however, will not serve the purpose for the buyer.
Q: If the actual valuation were to have a high COV which is not in favour of buyers, buyers can choose not to exercise the OTP. But, what's the recourse for sellers?
- Seller got to forfeit the option $.
Q: Many may have to walk away from the deal and forgo the option $. I hope the new system can be tweaked to allow valuation to take place before OTP
- I don't know what to say. I imagine that the valuation of HDB will quickly
move up(for those flats in high demand to reflect the currently lagging valuation)
or move down(for those cheap flat seller still clinching on a extremely high valuation report).
Once the valuation reflected the market price accurately, the number of OTP expiration will be lesser.
Love Compassion
A Life not Reflected is a Life not Worth Living.
感恩 26 April 2019 Straco AGM ppt https://valuebuddies.com/thread-2915-pos...#pid152450