Re-value The House

[Starscream 0]

Hi. After OTP exercised. Is it still possible to do a second valuation report on the house so that the value can be higher, which means the cash over value component can be reduced (retaining the original agreed sales price) ? If the second valuation is lower, we can use back the first valuation report?

Edited March 26, 2008 by Starscream

[vinzy 0]

Hi. After OTP exercised. Is it still possible to do a second valuation report on the house so that the value can be higher, which means the cash over value component can be reduced (retaining the original agreed sales price) ? If the second valuation is lower, we can use back the first valuation report?

Yes you can request for a 2nd valuation report. But of course you have to inform the owner as the valuer need to drop by their house during office hours to snap some photos and take a look at their house.

Yes you can use back the 1st valuation report if the 2nd one comes out lower.

Most recent valuation reports are higher than the one done earlier recently.

Please note if you are taking bank loan, it gets trickier as you might had already signed the Letter of Offer with the bank , with the required cash components , loan amount already fixed.

For HDB loan, shouldn't be much of an issue as you would be required to submit the valuation report only on 1st appointment, and your loan amount will be calculated then by the HDB officer.

vinz

Edited March 28, 2008 by vinzy

[keltong 4]

Hmm...after exercise OTP still can do valuation? Don't think so leh. After exercising OTP it becomes a binding contract and what you sign cannot be change liao. You can do 2nd valuation only before you sign.

[delirious_jeff 0]

After exercising the OTP, the buyer has another 2 weeks to consider before the submitted the application to purchase.

During this period, buyer can negotiate with seller on the valuation report, etc. I think the valuation report is needed for resale application and/or during the 1st appt.

[keltong 4]

Just to clarify, I know that after SIGNING the OTP, the buyer has 2 weeks to consider BEFORE exercising the option, but once EXERCISE the OTP, it becomes a binding contract and no further changes is allowed. Can anyone correct me on this? Coz this is what I always thought.

[aj123 0]

Just to clarify, I know that after SIGNING the OTP, the buyer has 2 weeks to consider BEFORE exercising the option, but once EXERCISE the OTP, it becomes a binding contract and no further changes is allowed. Can anyone correct me on this? Coz this is what I always thought.

Just to share my experience, which we're currently waiting for 1st apt.

OTP only list the agreed selling price, option and exercise fee. We've signed these even before valuation is done (taking a risk, yah... ) Only after option fee was paid, i proceed with valuation. Surprisingly, the valuation was quite high exceeding our expectation.

So, yes, OTP is a binding contract, but it list out selling price only. I don;t remember seeing any COV on OTP. If buyer able to re-value (at his cost), he may able to lower the COV. But again, need seller co-operation as they're still the owner. (place urself as owner, do you want to risk lowering the COV? unless you're retiring and you're able to withdraw from CPF fund soon, then you may consider helping out the buyer. )

[appreciative 0]

We just recently revalued our resale flat after signing and exercising OTP. The valuation report was mailed to us since we requested instead of to the owner. We got our agent who is the seller's agent to be there when the valuer was there. He did a good job so the valuer increased the valuation. The purpose of the revaluation is so we get pay less cash as we are using HDB loan. Even if the second valuation is lower than the first, we can always use back the first valuation from the seller as long as it is still valid (not expired).

So there's is no loss to the buyer to just go and revalue the flat, but you must really like the flat a lot and have signed and exercised the OTP. We paid for the owner's valuation and our new one.

Must do your homework, we did follow closly from the website and newspaper on the valuation.

Just to clarify, I know that after SIGNING the OTP, the buyer has 2 weeks to consider BEFORE exercising the option, but once EXERCISE the OTP, it becomes a binding contract and no further changes is allowed. Can anyone correct me on this? Coz this is what I always thought.

[keltong 4]

Thanks guys, I've learned something new today

[vinzy 0]

Just for everyone's info,

the valuation price of most HDB resale flat had increases since last Dec07/Jan 08 period.

For those who had signed their OTP recently and their valuation report is dated 2months back,

there is no harm paying $180+ to request for another one, this will usually decrease your cash outlay by a few thousand at least. Oh yes, pls only get this done when you signed on the dotted line with the seller.

Who knows how much the seller will increase the overall price

if he knows the valuation prices had increased for his hse?

(if nothing was being signed between seller and buyer)

Everyone becomes greedy when its your turn to be the seller.