How Much To Negotiate?

[scenic98 0]

Actually.. did you send in all your income documents.. sometimes bank officers say in principal.. and the form says in principal.. but if you have all your income documents.. it because an actual application.

yup... everything, from our income statements, cpf statements, everything....we wanna be real safe.

[therat 18]

yup... everything, from our income statements, cpf statements, everything....we wanna be real safe.

then this is no longer AIP.

This is a formal application for Bank Loan.

Letter of Offer.

Did u check all the T&C. interest, benefit. craw back?

[chia90 0]

correct. and also u will need to have the exact unit number. otherwise, if you type in a street name, it doesn't show u which unit/s along that street was sold.

but as with any online information, even from URA, use them as a guide and not as a bible.

actually, not totally true also... eg, if you type "upper paya lebar road", it will show the results in a popup. eg choose "terrace house" and it will show the recent transactions with the unit number when you scroll down... then again, maybe this is a recent enhancement to their system.

U r right, it should only be used as a rough guide only.... different house, size, facing, conditions, buyers, sellers will all affect the price...

best to make sure you get at least 1 bank to hand u a letter of offer and not a AIP before signing to OTP.

this is a really really good and important advice, else one may lose the 1% if he/she cannot get the needed bank loan...

[JustMortgage 0]

then this is no longer AIP.

This is a formal application for Bank Loan.

Letter of Offer.

Did u check all the T&C. interest, benefit. craw back?

Absolutely.

[JustMortgage 0]

this is a really really good and important advice, else one may lose the 1% if he/she cannot get the needed bank loan...

Just to clarify. There's always some confusion here.

When you see a property you like, you decide to offer the seller a price e.g. $800,000

The seller is agreeable and you (the buyer) places a 1% (the consideration) of the agreed purchase price as a "deposit" with the seller, an Option To Purchase is established

What you have also done is that you will have the first option to complete the purchase of the property at the agreed price within the next 2 weeks.

You can still lose the 1% if you cannot come up with the financing.

[therat 18]

Just to clarify. There's always some confusion here.

When you see a property you like, you decide to offer the seller a price e.g. $800,000

The seller is agreeable and you (the buyer) places a 1% (the consideration) of the agreed purchase price as a "deposit" with the seller, an Option To Purchase is established

What you have also done is that you will have the first option to complete the purchase of the property at the agreed price within the next 2 weeks.

You can still lose the 1% if you cannot come up with the financing.

or a screw up lawyer also can make you lost the 1%

If they forget or miss the timeline to sent in the OTP to the seller lawyer hand.

That's it. 1% bye bye.

On top of this, you need the pay the cancellation penalty for the bank loan (est 1.5% of the loan amount) + all the craw back.

die even faster

Edited August 27, 2009 by therat

[JustMortgage 0]

or a screw up lawyer also can make you lost the 1%

If they forget or miss the timeline to sent in the OTP to the seller lawyer hand.

That's it. 1% bye bye.

Right, that's another possibility.. ouch, that one is painful.

[Amy Choon 1]

wa! more things to worry about! double faint lor.. stress le.

[therat 18]

Right, that's another possibility.. ouch, that one is painful.

get a good lawyer is very super important.

cheap lawyer fee does not mean it is good.

even lawyer from the bank panel does not mean they will not screw up.

want to save few hundred, in the end. MORE HEADACHE

[shingirl 0]

out of the topic........... but just curious.............

if you intend to even loan the initial 4%........... then how can you afford to stay in the condo?

[JustMortgage 0]

get a good lawyer is very super important.

cheap lawyer fee does not mean it is good.

even lawyer from the bank panel does not mean they will not screw up.

want to save few hundred, in the end. MORE HEADACHE

Generally, there are many lawyers on the panel of banks. at least 50 to 100 different legal firms,

some banks practice an indemnity tier, meaning certain legal firms can only be appointed for certain transaction sizes.

Ironically, the unethical practice is to refer lawyers to do conveyencing and receive a kick-back. We don't practice that, but then again it can amount to a few hundred thousand of "income a year"

Frankly, thats also as good as defrauding the client and defrauding the tax authorities and also an accomplice to violating the law society guidelines.

[Amy Choon 1]

out of the topic........... but just curious.............

if you intend to even loan the initial 4%........... then how can you afford to stay in the condo?

i don't need to loan the 4%. i just need to sell my HDB. after that financing that condo is no issue at all.

[JustMortgage 0]

It's common for people to utilize bridging facilities due to the time needed for the completion of the sale of their properties.

[chia90 0]

Just to clarify. There's always some confusion here.

When you see a property you like, you decide to offer the seller a price e.g. $800,000

The seller is agreeable and you (the buyer) places a 1% (the consideration) of the agreed purchase price as a "deposit" with the seller, an Option To Purchase is established

What you have also done is that you will have the first option to complete the purchase of the property at the agreed price within the next 2 weeks.

You can still lose the 1% if you cannot come up with the financing.

true also.... there are quite a few ways of losing this one percent... : )

[scenic98 0]

Absolutely.

in the end, i did not take up this bank's offer. just using it as a backup, if the other bank with a better rate for whatever reason reject my loan application.

at the end of the day, to all prospective buyers, do your sums, don't stretch until your limits, then u will have one less worry whether u can get the loan or not.