Resale Home Seekers and Owners of Resale Units

[hello88]

Started this new thread for all forms of resale discussion. Hope we can learn from everyone

To start off, here's a case of a bad resale deal extract from another forum

"".......sigh, otp was signed before the new hdb policy change regarding valuation was announced. so valuation was estimated to be around $400,000. the flat was in bishan. trusting the agent's professional estimate and past transactions, negotiated a price, not too attractive. around $414k. but agent said that it's normal for flats in bishan to be above valuation. so okay. never check. should have done hdb valuation then. but agent pushed for bank loan saying it's attractive. so i thought like this:
1) take hdb loan, have to come out with $14k cash, assuming valuation around $400k.
2) take bank loan, have to come out with 4%, which is around $16k.

so signed the form and asked around which loan to take before informing agent. finally decided on hdb loan. so asked agent to do valuation then.
then hdb came out with the policy (due to all the cash back thing) that all valuation to be conducted by hdb. so the valuator valued the flat at only $370k. shocking!!! shock. that's $44k cash. where to find the money?

now also dunno how. owner refused to come down. agent insisted we have to pay commission. but the deal did not go through. and she has not been very transparent with us. we feel she (representing both the seller and buyer, us) has not been very fair to us. conflict of interest lah. the higher she sells, more commission. so kept pushing for bank loan right from the start." "should have done valuation before signing anything. big mistake here. owner is willing to negotiate ... asking for some compensation on top of the deposit. sigh. sigh.
agent also wants to collect blood. guess not many agents . no deal no collection. threatening to sue me if i did not pay, since i signed the commission form. up to now, i have not received a copy of that form. i had to chase her for the otp form before she'd send a photostated copy to me. call that pro service? agent should not get anything fr me since she provided poor service and did not complete the transaction. is there any legal clause that protects the buyer under such circumstances? will agents sue for such an amount? can IEA or other body help? any advice is really appreciated. "

Hope all resale home seekers learn from this chap's painful experience.

 

[hello88]

Hi Charleen,

I've already stayed at current place for past 6 years...5yrs ruling apply if u take the grant. If u take the grant like me when u get your 1st flat (a resale flat) then u're no longer a first timer. And u would have to pay levy in order to get a direct one from HDB.

I'm not going to pay the levy so I'm not going for a direct one from HDB. If I've not taken the grant, then I might consider applying directly from HDB during the WIS, BTO, etc. But the choice is out for me as I've taken the grant so either a resale or a private for me.

Property market not doing well and flats are selling are valuation or below valuation for many ........so those resale homeseekers might wanna consider not taking the grant so that u're still eligible as a first timer if u do apply for a direct one from HDB in future. Onces grant taken, the 5 yrs ruling kicks in and no more a first timer.

 

[esterlla]

Hiya,

I got my queue number for BE for BM.Went to check after reading the threads here! But my queue number quite far below. hope that I can get my choice unit! : )

 

[esterlla]

sorry, wrong thread! : (

 

[hello88]

Hi summerala,

Resale flat to be more ex? think it all depends on the size of the flat u're interested in as well as the location. Think there shouldn't be much difference.

 

[summerala]

thank you celia...

 

[hello88]

Hi Shelyn,

ya...I also signed on the dotted line and did it before another interested party. Prayed hard everyday for nearly 2 weeks and luckily it was above what we paid...

 

[shelyn]

Hi celia

so u were also in the same situation.... i'm now doing exactly wat u did.... praying everyday..... and now hdb valuation unit very high volume cos everyone got to do hdb valuation... so waiting for about 2 weeks still no response.... so anxious and nervous now

 

[shelyn]

Hi

finally got my valuation... only valued at 295k and i bought my unit at 303k... my agent kept telling us the unit would be valued ard 300k.. so sad not cannot go back liao....

and i also realise got to pay a lot of fees leh.... incl the valuation fee. Do we need to pay the fee? cos i tot this shd be paid by the owner?

 

[hello88]

Hi Shelyn,

Nope, buyer gotta pay for the valuation as we need to take housing loan. Yours how many rooms? So u'll be topping up cash? When's your 1st appointment? Mine is 8 Jun

 

[shelyn]

Hi celia

yah i have to top up cash lor... no choice ma. mine is 5 room. Have noe subnmitted my documents... so no appt date yet.

 

[hello88]

Hi Cascanda,

Sometimes, the owners already upgraded, downgraded, migrated, etc before selling off the unit that's y u viewed an empty unit. I've also seen a few empty units during my hunt for a resale unit. For instance, my friend already moved to her current unit for past 4 months but her previous unit not sold yet.

 

[tcm]

Hi Ceclia,
thanks. I was quite worried about it when I saw it was empty. Isn't there a time period for them to dispose the house ?

This is my first time hunting around for a resale flat, so I am very unsure how to go about doing it. If the flat is valued at 340k and the owner is selling at 350k, should I offer a price which is lower than this or should I offer a slightly higher one ? How do I go about bargaining the price ? Do I have to place a deposit ? and if so, in cash or cheque and how much ?

Sorry for asking so many questions.

 

[satay_man]

Hi Cascanda,

Of course you dnt offer higher than that...the valuation or owner asking is just a rough idea how much they are looking at. Yr agent will actually advise you or negotiate for you. But no one will offer higher at the start or even throughout the bargain process. unless the unit is really super good and lots of pple eyeing.....usually you can bargain to yr advantage.or a realistic amt to both buyer and seller. some hse actually sell below valuation also. so very hard to say one. u can do some hoemwork yrself also by checking hdb website for resale transaction for the area you are looking at. but dnt offer more than 340 or 350...u have no space to negotiate after that.

you pay a deposit only when you and seller have agreed on a price. you will sign the Option to purchase form n you have 2 weeks to consider, provided you dnt exercise the option on the same day. If you exercise the option to purchase and sign as well, you cannot backout. So do not be pressuried by the agent or whoever to sign everything. can be pay in cash or cheque.

i advise you read more from hdb website for a better understanding. dnt rush into everything especially you are new to all these.

 

[tcm]

Hi Satay Man,
thank you for the advise.

 

[hello88]

Hi Cascanda,

Ya, now is buyers market. By the way, HDB usually give the owner 6 months to sell off their flat but HDB is flexible that it would extend the period even though owner still cannot sell it after 6 months.

Your current agent is yours or the sellers? Usually the seller agent would 'push' u to go for the unit by saying that someone else is also eyeing on that particular unit.

When was the date of the valuation? Done only recently or already one or two months? The date is one of the indication of the popularity of the unit and area. If its more than a month, chances are u try to push down the purchase price since obviously many buyers are not willing to pay above valuation for that flat. Check the resale transaction of the block to better guage the price http://www.wambri.com/singaporeproperty.htm


Do not forget that u still need to pay the agent 1% of the purchase price plus GST as commission for agent on top of whatever u're paying the seller for buying above valuation. U still got to pay some misc fees to HDB so try to buy one at valuation or better still, below valuation as I think as buyers, we rather spend $$ on reno.

Check the unit carefully as had seen many bad experience that the seller would use furniture to conceal those tiles that have already cracked. People like us buyers thought we save $$ since not doing the flooring but after seller moved out then realised got to spend $$ on flooring. Unless u going to spend $$ on renovating the whole house then seller's existing decor is not important.

Some buyers pay a small deposit to 'chop' the unit. Remember to choose wisely and before u sign on the dotted line, pls remember to walk from top to bottom floor of all the staircase landing and lobbies to confirm that there are no O$P$ for that unit.

 

[tcm]

Hi Celia,
thank you

so much things to know....I am drowning....

I don't have an agent now. I just call up one of the agent advertise in the newspaper and he offer to coordinate those flats in the same area for my viewing.

pardon me, but what is O$P$ ?

 

[summerala]

do we have to pay for the HDB valuation?? i tot there are places where the seller oledi did the vauation... so we still gotta pay???

how is it possible to examine the whole hse thoroughly??? I mean when.. we can't be movin the owner 's furniture to and fro when we are just viewing the hse ri??

 

[hello88]

Hi Cascanda,

O$P$ = Own Money Pay Money

have fun spotting these words on the walls of HDB blocks. The other day went to visit friend at Compassvale and saw one of the staircase from top to ground floor scribbled with #??-XXXX O$P$.

life in Singapore is all about $$$$$$$$

Hi summerala,

Buyers would have to pay for the valuation report since buyers need the valuation report when they apply for HDB or bank housing loan. Usually buyer would just buy over the valuation from the seller rather than do another valuation as u never know what the results might turn out to be.

Its not possible to view the whole house thoroughly unless u specifically ask agent to source for empty units whereby owners already moved out. Its all about luck. That is the reason why u need to be prepared for everything when buying resale flat. Even new direct flats from HDB have its own defects.

I'm waiting for my 1st appointment in Jun and choose to buy the flat below valuation as I'll rather spent my $$ on renovation. I intend to hack everything so we did not 'examine' the whole house thoroughly. We just confirmed the unit solely on the location criteria since we're going to do up the whole house. My SIL previously bought the house thinking that she could save on flooring but who would have expected that the seller 'cleverly' moved her furnitures to conceal those broken tiles.

So, if u intend to spent on reno then try to get a unit that u need not pay above valuation. We decided on this since we'll be getting everything new and to our own liking.

Good luck on house hunting

 

[xynn]

I have been viewing several resale flats. Would like to check, do you gals go back to see the house for a second time before you sign the Option to Purchase?

 

[wilest]

Hi all.. was informed of this thread earlier on.. glad to learn from others experiences here..
just like to share my experience::
me & hubby got our 1st appt this Monday, and now waiting for the 2nd appt which will be early June.. hmm the flat that we've secured is valued accordingly to the valuation price hence there wasnt any hard cash to top up.. on top of that me & hubby are gettin hdb grant that come up to 202k for a 4rm flat which we feel pleased.

 

[hello88]

Hi eSther,

so your 2nd appointment also fixed in Jun?? They fixed it on Monday during the 1st appointment?

what were the fees payable on 1st appointment?

 

[hello88]

Hi Xynn,

of course...u have to go back for 2nd, 3rd or even 4th time before signing option to purchase. Remember to read my post above to check the exterior. Btw, go during different time so at least u know where's the afternoon sun. Furthermore, ppl sometimes advised to bring kids there and if the kids enjoy themselves then its ok but if the kids resist and refused to go in...something is wrong

 

[xynn]

Thanks celia.
I heard of bringing babies to resale flats. If the baby starts crying, that means the flat is no good.

 

[hello88]

Hi Xynn,

since u're getting resale so just gotta put in extra efforts to choose the right one. Good luck.

When I was in your position 2 months ago, I scanned through the classified everyday especially Sat. So hope u'll find yr lovenest over these long weekends

 

[wilest]

Hi Celia:
ya my 1st appt was fixed on 25th April a Monday slightly more than 3 months after submission of application form.. My 2nd appt wasnt really fixed yet, all i know it is stated between 1st June to 15th June and have to wait for the letter which will inform us a week earlier abt the exact date of 2nd appt.. Hence b4 the 2nd appt, we as the buyer have to arrange with the seller to view the flat again so to ensure the items were told to be removed has already moved out of the flat and then have to do a last check before the key is goin to handover to us (buyer). and regarding abt the fee to be pay on the 1st appt are as mentioned 1. deduction of cpf account( for conveyancing, registration and stamp fee, home protection insurance scheme)2.$128.15 (hardcash- conveyancing & caveat fee, 3.$80.00(hardcash non-refundable admin fee)- all inclusive 5% gst hmm abt the agent fee is depend how the buyer and the agent's agreement.. in my case we were charged 1% of the deal price and gst was waived off for us favorably (paid half half basis on 1st & 2nd appt).. ooh remembered back when having the 2nd view of my lovenest, me & hubby brought our 2 dogs and his cousin, a toddler to "chk out" for the flat keke it was kinda fun hehee

 

[hello88]

Hi eSther,

Thanks for your detailed information. So how u shortlisted your ID? Do u need to do up everything?

for me, i need to hack everything and revamp the whole house...sob sob..there goes my $$$$$$$$$$

 

[wilest]

::celia::
not to mention

.. u're mos welocme
.. hmm abt the ID, me yet to shortlist any ID still open to opinion hehe .. hmm wat abt u? currently me & hubby planning those places need for a revamp is the bathroom haha juz for the hygiene sack lor and not forgettin the titles flooring n a lil on kitchen.. and the rest will be touching up job to follow.. so we only budget ourselves not more than 20k for renov (hopefully).. so u & hubby applying for any renov loan and care to share from which source? hmm money can earn back so long the money is spent worthy and achieve a cozy ideal home sweet home.. that will be great isnt it heheh

 

[hello88]

Hi eSther,

we've got a few quotes but yet to shortlist anyone. Such a big headache. Reno loan? Ya, might be taking about 15K and from some of the threads, a number of them proposed RHB. Maybe u can check it out if u're taking reno loan

 

[joanne225]

hi

just curious....what resale areas did you guys purchase?

anyone here looking at the East? me looking at bedok reservoir area....sigh....every wk end plough thru news papers.....very tired leh....

 

[wilest]

::Celia::
ooh wat's RHB? perhaps takin up loan can lighten the bundle hehe.. coz yet to have my AD wor hehe.. hmm btw i added u in my msn leh.. my addy is [email protected] if u guys like to add me too.. hope to cya ard

::Joanne::
wow east.. hmm mine was total opp from u.. i found mine at west area thru agent which actually will lighten abit from the hunting job.. wish u good luck n found ya lovenest soon.. Kampateii!

 

[queenie30]

Hi there!
My resale is at JW,2nd appt is nx week.Cant wait then can start reno & move in!

 

[hello88]

Hi eSther,

RHB is RHB Bank http://www.rhbbank.com.sg/

Ok, I'll add u in my msn and hope to chat with u soon.

Hi queenie30,

wow, that's fast, last heard u went for 1st appointment in Mar right and that's less than 6 weeks? U settled your current flat?

Hi Joanne,

Mine in Hougang.

 

[queenie30]

Hi celia,
no 1st apr was 1st appt.My FH current flat not settled yet as in 1st appt also later tis mth.
Wat abt u?

 

[hello88]

Hi queenie30,

My 1st appt on 8 Jun. Currently house just submitted for valuation. Probably HDB would be calling us on Tuesday.

 

[joanne225]

Wow....seems everyone's found a love nest...

I got a question...what must we produce on 1st appt date? if we getting the 40k grant, by when must we show them the rom cert....

its kindda of rush....anyone here successfully defered the ROM?

 

[hello88]

Hi Joanne,

Not sure about it, probably also within the same time frame be it new/direct or resale flat. Think better to check with HDB. We made at least 2 trips to HDB Hub at TPY and countless trips to area office to bombard them with questions.

Regards

 

[summerala]

Is the 40 k grant only valid for live near the parents... if my parents are moving in with us... r we entitled to the 40 k too??

 

[hello88]

Hi summerala,

Yup, the grant is only valid for staying near parents.

There are 2 types of grants offered by HDB. Here are some info on the 2 types of grant:-

http://www.hdb.gov.sg/isoa018p.nsf/890f06c8ce1442cd4825667300240a94/50e1f1e36be0b9a848256bd00027f28c?OpenDocument [Take note of Note (i)]

http://www.hdb.gov.sg/isoa018p.nsf/890f06c8ce1442cd4825667300240a94/5e5a4bc6255b10a048256bd00027f1da?OpenDocument

 

[hello88]

Hi All,

Not sure how the price discrepancy came about...buyer and seller did not check before both parties signed on the dotted line???????????

Extracts:~~~~~~~~~~~~~~~~~~~~~~~~~~
May 3, 2005
Who governs real-estate agents?
MY HUSBAND and I recently bought a resale flat. After the transfer of ownership, both the seller and ourselves found a discrepancy in the selling price, with the difference going to agent commission. Being first-time home-buyers, we trusted the agent and signed the documents. We are now obliged to pay the agent.

We approached HDB for help, but as the deal had been completed, it was not able to assist us. We called the Inland Revenue Authority of Singapore, which licenses agents, but it does not deal with the technicalities of transactions.

We called the Institute of Estate Agents (IEA) as the agent had the IEA logo on his namecard. However, he is not a member.

Who governs real-estate agents? Anyone who is buying or selling a resale flat should meet the seller/buyer before signing documents.

Ong Hse-Yin (Ms)

 

[hello88]

Financial Scheme For Low Income Families buying 4-room and smaller units in the resale market.
http://www.hdb.gov.sg/isoa018p.nsf/890f06c8ce1442cd4825667300240a94/83f2d3b99af77ad648256efb0011757e?OpenDocument

Calculate your monthly instalment for your HDB housing loan before they commit yourself to the resale flat http://www.hdb.gov.sg/bb29/ispm015p.nsf/reslenq?openform

 

[summerala]

Hi Celia..

I called HBD this morning and the person told me that if I apply my Parents as occupier.. i can get the 40K grant... can anyone verify??

 

[hello88]

Hi summerala,

Your parents got any existing flat of under their own? According to the link above, it stated that parents moving in as occupier have to pay levy when they sell off their own flat then their children entitled to the grant (not sure which grant). 40K is for staying near parents and 30K is for another one buying a resale flat for the 1st time right?

Seriously, not sure about it as HDB policies changes every now and then. We very kiasu and checked with HDB and area office 3 times on a single issue. Spoke to 3 different staff and eventually confirmed that it was so and so after 2 out of 3 of the staff at both HDB Hub and area office said it could be done. I still made a trip to CPF board just to confirm that the information given to me was correct.

 

[summerala]

Hi celia...

My parents do not have their flat under their own.. so guess it shouldn't be a prob...

I dun think u are kiasu... sometimes even their staff oso provide us the wrong info...everywhere is the same... u ask diff staff abt the same qns... and diff ans could come out from their mouth... so if me., i would oso called once and go down once to comfirm

 

[hello88]

Hi summerala,

Since your parents do not own any flat under their name so I think u should be eligible for the grant. But not sure if its $30k or $40k? I think $40k if u're staying near parents (so for your case staying near his parents?).

How's the house viewing over the long weekends? Any love at first sight unit for you so far?

 

[starlet]

Hi celia,

I also bought a resale unit @ hougang..
Which part of hougang ?
my 1st appt also in June..

 

[winterbabylon]

hi, i would like to find out something with regards to our CPF savings interest rate.

Currently our CPF savings interest rate is at 2.5% pa, and the HDB housing load in at 2.6% pa.

Hence, if my monthly contribution to the CPF Ordinary Account is $1000 and my instalment is $800 per month with a total loan period of 20 years, so...

1. Is my CPF savings interest (2.5% pa) based on $1000 or $200 ($1000-$800)
2. when I sell my flat after 10 years (120 months), I have to return to the CPF the total outstanding loan, AND, the savings interest incur for the total amount I have paid so far for the loan. How do I compute the value of 2.5% pa for $96000 ($800*120 months)?

Ps: I understand that the CPF savings interest is calculated monthly, compounded, but credited annually. Does this complicate things further?

THanks and hope someone can enlighten me.

 

[hello88]

Hi Winter Babylon,

Your questions need the experts (CPF board) but maybe someone here can help as I not sure if I'm correct.

1) I think the interest computed for your CPF savings should be $200. Reason: The $800 had been withdrawn for housing loan and interest are being incurred under the Public Housing withdrawn which u would have to put back upon selling yuor flat.

2) Clueless about this calculation. HDB confirmed that there would be some 'discount' on the interest rate if we choose to settle partialy or wholly the outstanding loan before we reach the supposedly final instalment i.e total loan period 30 yrs but decided to settle the loan after paying 5yrs.

I would be selling my current flat soon and I check the 'Public Housing Withdrawal' when I login to CPF to get the exact amount to be returned to CPF upon selling my flat. The details are there including interest incurred if I had otherwise retain my monies inside CPF.

 

[hello88]

Hi Starlet,

How old is the flat that u bought?

 

[summerala]

Hi celia...

me will have to buy a flat in AMK if the grant is oni valid for Stay near parents.. FH parents live there.. but if my parents stay with us and we can have the 40K grant.. then i will have more options... AMK is so expensive leh..

Me haben start hse viewing..still actively doing all types of researching.. haha...

HDB is always changin their rules and regulation... so scare one day they will took away the 40 k grant too... heard last time they used to give 50 k grant... but anyway nobody knows.. maybe one day there 's grant for new flat too.. heehee