Hi,

Which are the factors taken into consideration while HDB value a flat?Does the renovations add really to the value of a flat?If not what are the other main aspects?

Please advice

Thanks

renovation does add value to the flat

but it's more on a tiled vs screed floor, marble vs ceramic tiles kind of add-value

the value added does not correspond with the reno bill

i.e. a $50k renovation may only add a further $10k to valuation

I think if I want to sell my home, then at most touch up on the painting to cover up cracks or unsightly patches, no need to go through re haul, coz bo hua.

Careful. If you selling, either make sure you have a damned beautiful flat (so that people can literally move in) or a damned lousy one (so that people will not think twice about reno).

Hi,

Which are the factors taken into consideration while HDB value a flat?Does the renovations add really to the value of a flat?If not what are the other main aspects?

Please advice

Thanks

The usual way and prefer method is the area valuation. They will do a comparison with other units in your area and thus the price. The renovation doesn't play a part in the valuation as the saying goes, a man meat can be another man poison. However if the renovation is less than 3 years old, then it will play a small part in the valuation. This is due to better maintain of the house which will lead to a higher valuation price.

Other aspect of a newly renovated house is the sale appeal, you will get more offer and in a short time. This however will contribute to a higher COV instead of valuation.

Careful. If you selling, either make sure you have a damned beautiful flat (so that people can literally move in) or a damned lousy one (so that people will not think twice about reno).

Not true at all. But your selling unit must be at least looked clean on first impression. And be frank on what are the defects in your flat. Be honest.

That's your opinion. Mine is different.

One of the worst things for a home buyer is to have a house where everything is perfect (location, facing, amenities, etc) except the renovation is totally obiang. Like if the owner (just an example only) did up a beautiful country theme but you hate country. Obviously, since the reno is in good condition, the price will be higher than a bare flat. But to tear everything down and redo everything is a heartache-- as well as a waste of money and time!

That's your opinion. Mine is different.

One of the worst things for a home buyer is to have a house where everything is perfect (location, facing, amenities, etc) except the renovation is totally obiang. Like if the owner (just an example only) did up a beautiful country theme but you hate country. Obviously, since the reno is in good condition, the price will be higher than a bare flat. But to tear everything down and redo everything is a heartache-- as well as a waste of money and time!

Agree, some buyer simply don't like the seller interior furnishing, but other advantages outweigh it. So I guess different buyer and different requirements.

valuation include:

1) the recent transacted price of similar flats (eg. 3rm to 3rm, 4rm to 4rm, etc.) in that same area,

2) the amenities around it, eg. got PIE, ECP, TPE, transport, MRT etc., schools (famous schools = higher demand = higher value in valuation = also higher cash by desperate parents who want to get their kids into such school, eg. 3rm around raffles vicinity once hit $250k! must be siao to pay so much for it), got lift or not, got covered walkway and food centre / mkt or not.

3) surrounding areas, eg. near reservoir, nature reserve (coz got mountain & water = cooling = $$) noisy or not, etc. eg. if besides expressways, den maybe cheaper coz of noise

4) year of block (eg. how many years out of 99 years)

5) condition of flat, eg. well maintained, extensiveness of reno (is it gd enough for general move in etc.), any leakage, etc.

a) reno include: like what apple say: ~ a tiled vs screed floor, marble vs ceramic tiles kind of add-value

the value added does not correspond with the reno bill, can be move in type or not? eg. some ppl may hv cabinets that are falling apart, tiles broken and must rehack / retile etc., den it makes a different. got wiring done or not?

my aunt's 2 nieghbours that had moved out abt the same time but the price for both units are so far apart. 1 is ready to move in except for general touch up, meaning only need a new coat of paint and cleaning but all floors, toilets, storerm racks, kitchen top & cabinets all well done fetch a cash for $12k. but a bare unit that need to do tiling, and practically everything, fetches $3K only and both are at central area, same blk & same floor.

see the difference? if you hv hse agent as freinds, go ask them their on valuation criterias. and whether buyer likes the reno and want to pay for the asking price is dependent on the negotiation process. same goes for seller. and also there are gd & nasty sellers / buyers also.

Hi,

Which are the factors taken into consideration while HDB value a flat?Does the renovations add really to the value of a flat?If not what are the other main aspects?

Please advice

Thanks

Method & Basis of Valuation

For the purpose of e above , the Direct Comparison Method , where recent sale transactions of comparable

properties within the vicinity are used as guide to arrive at the value after relevant valuation adjustments are made.