How Much To Negotiate?

[JustMortgage 0]

oh.. thanks all for the info! wa... so glad i came to this forum, so many good advices and help here.. .. Thank you leh!

At the same time, if you want to know indicatively if the valuation of the property is fair or if you require finding out what's a good mortgage package in the market, we could assist you with that. Real Estate agents typically won't know the ins and outs of mortgages and when it comes to valuations it's better to seek a professional opinion from one that does not have a vested interest in selling the property. Good Luck!

[scenic98 0]

Try this too... quite good. : )

http://www.renotalk.com/

yup...i like streetsine too. it gives you the exact unit number that's transacted. whereas the URA site only show the project and the price. but streetsine is not so good for landed properties.

Business Times listings of sold properties are extracted from URA.

Edited August 26, 2009 by scenic98

[Amy Choon 1]

i tried street sine le.. it's really good. now i can agar the amount i want to nego already.. i can even see the map with 2km radius marked out. good for parents like me with kiddo attending primary school.

[JustMortgage 0]

i tried street sine le.. it's really good. now i can agar the amount i want to nego already.. i can even see the map with 2km radius marked out. good for parents like me with kiddo attending primary school.

Although you know the previous transaction prices. It is important to also know what is the valuation of the property so that you can gauge the amount of cash you will need to

prepare upfront and the estimated mortgage loan quantum you might want to take from the financial institution.

[Amy Choon 1]

hello ***,

my agent told me the 5% cash don't need to pay cash and as long as i have 15% in our CPF to pay can le. is it true?

i got AIP from one bank already. and it's based on a higher property price. what else should I do? what others to check and where to check?

[JustMortgage 0]

hello ***,

my agent told me the 5% cash don't need to pay cash and as long as i have 15% in our CPF to pay can le. is it true?

i got AIP from one bank already. and it's based on a higher property price. what else should I do? what others to check and where to check?

Dear merydith,

We are talking about private property purchased in secondary (resale market) Correct?

1% option fee is always payable in cash

4% will be payable after the exercise of the option to purchase

This first 5% must be cash.

15% can be utilized from CPF or cash component. (CPF before untilizing will be subject to setting aside 50% minimum sum if the property to be purchased is the 2nd property + lease remaining on property > 60 Years)

AIP does not mean that it is a guarantee the bank will lend. The bank will assess again after getting the necessary financials from the client and doing a precise check on the client's credit profile and the necessary check on the applicant's existing loans and credit facilities. We have had cases before that one of the financial insitutitions have granted an Approval in Principal and in the end rejected the loan. Luckily we had spoken to other financial institutions and in the end managed to locate one for the client.

If you were to engage our services, we will handle the queries and checks with other banks for you including the valuation of the property when you are ready to commit. There are no fees charged you. We will also speak to lawyers that we deal with for you in the event you do not have a legal firm representing you. Do beware that there are firms/people in the market that so call claim to help clients but they negotiate fees from lawyers and thus jack up your legal fees.

Edited August 26, 2009 by JustMortgage

[shingirl 0]

ya i agree.......... there are lots of agents or companys that help you source for loans......... but beware....... sometimes they sell you based on the highest commission rate........ =P (which i expereince here in this forum some times back)

for housing loans, it's better if u go to lots of banks and ask ask ask........ ask about their subsides and what are the lawyers charges........

also, if tell them you are refer by a friend or whatever................ then they will give commission to the referrer..........

im not here to spoilt market............ but different banks got different rates..........

[JustMortgage 0]

ya i agree.......... there are lots of agents or companys that help you source for loans......... but beware....... sometimes they sell you based on the highest commission rate........ =P (which i expereince here in this forum some times back)

for housing loans, it's better if u go to lots of banks and ask ask ask........ ask about their subsides and what are the lawyers charges........

also, if tell them you are refer by a friend or whatever................ then they will give commission to the referrer..........

im not here to spoilt market............ but different banks got different rates..........

Correction

Banks offer a commission to firms such as ourselves or real estate agents to refer them business : Yes

Can agents or firms offer a mortgage to a client because of a higher possible commission tier : Possible (especially if the firm negotiates with the bank a volumetric based referral)

Do bank officers give you a commission when you mentioned you are referred by a friend or something : Most banks do not. On the other hand, their are bankers who work with the applicant to submit the loan as a referral from an agent and they split the fee from the bank. This is defrauding the bank. Bankers have been persecuted before.

We agree that banks have different rates, but what's equally important is that, do clients know each bank have their own credit criteria? Criteria for assessing the client, criteria for assessing valuation?

Clients can always go straight to the bank. In fact, that's their perogative, at Just Mortgage, our goal is to assist clients in getting their mortgage in an efficient manner.

We work on our panel with banks and financial institutions such as

-DBS/ POSB

-OCBC

-UOB

-Singapura Finance

-Hong Leong Finance

-Standard Chartered

-HSBC

-Maybank

-RHB

-Citibank (We're pleased to mention we are the only mortgage broker to have been extended to their panel as to our best knowledge)

[chia90 0]

yup...i like streetsine too. it gives you the exact unit number that's transacted. whereas the URA site only show the project and the price. but streetsine is not so good for landed properties.

Business Times listings of sold properties are extracted from URA.

is it because it only shows the land area and not the built up? ie you cannot tell whether it is a single, double or 3 storey?

[Milgram 0]

i tried street sine le.. it's really good. now i can agar the amount i want to nego already.. i can even see the map with 2km radius marked out. good for parents like me with kiddo attending primary school.

Note that streetsine, while good with its precision, may not necessarily reflect all transactions. I tried it together with the caveats lodged at URA website and discovered discrepancies. Thus, it's best to look at all sources of information.

[Amy Choon 1]

"4% will be payable after the exercise of the option to purchase"

That will be 2 weeks after i sign the OTP and decide to exercise the option after getting loan from bank?

Then when I get my bank loan, can I request them to include this 4% in their bank loan so I have upfront cash to pay?

Then when do I pay the 15%?

If the buyer for my HDB paying me COV, when do I get this cash? On the 2nd appt?

Sorry ah, all these is making my head spin. Need to clear them up.

[Amy Choon 1]

Note that streetsine, while good with its precision, may not necessarily reflect all transactions. I tried it together with the caveats lodged at URA website and discovered discrepancies. Thus, it's best to look at all sources of information.

hey Milgram, thanks for the info. I have compared the info already, no discrepancies. So if I want it more accurante, I have to get valuation from bank? How much is that? You know?

[therat 18]

"4% will be payable after the exercise of the option to purchase"

==> nomally 4% is payable at the same time the OTP is excise.

That will be 2 weeks after i sign the OTP and decide to exercise the option after getting loan from bank?

==> Wrong. sign OTP is = to exercise the option. where got 2 wk after

After u offer 1% (Offer to Purchase) to the seller.

If seller accept ur offer. Will issue OTP which will lapse in 2 week time.

Buyer need to excise this OTP within these 14 day include sat/sun/PH.

Prefer to get bank loan approve before excise the OTP.

These 2 week, u need to decide which bank loan to take up.

Then either get your prefer lawyer or any lawyer from the bank panel

Go down the lawyer, exercise the OTP infront of the lawyer

Issue CHQ of 4% and stamp fee.

Then when I get my bank loan, can I request them to include this 4% in their bank loan so I have upfront cash to pay?

==> NO. Bank loan is base on valuation or purchase price whichever lowest.

Eg. Bank valuation this condo 700k and you purchase it at $750k.

Bank will only loan 80% of $700k not that $750K

So, the max bank loan is 560K. The balance 190k u need to pay by cash

Then when do I pay the 15%?

The balance 15%(cash or CPF) will be pay on the completion date

If the buyer for my HDB paying me COV, when do I get this cash? On the 2nd appt?

don't know

since you say the agent is your husband friend. Did you ask him the same question you had post?

Can he answer all your question.

BTW, just for your information.

Buyer for Private property don't need to pay commission.

If ur agent try to ask for commission for the condo, I think time to change agent.

[therat 18]

hey Milgram, thanks for the info. I have compared the info already, no discrepancies. So if I want it more accurante, I have to get valuation from bank? How much is that? You know?

bank will only do an est valuation. If you want an actual valuation, i think last time someone told me is around 600 plus

BTW, different bank will give different valuation.

Get AIP 1st before you sign any doc

[JustMortgage 0]

"4% will be payable after the exercise of the option to purchase"

==> nomally 4% is payable at the same time the OTP is excise.

That will be 2 weeks after i sign the OTP and decide to exercise the option after getting loan from bank?

==> Wrong. sign OTP is = to exercise the option. where got 2 wk after

After u offer 1% (Offer to Purchase) to the seller.

If seller accept ur offer. Will issue OTP which will lapse in 2 week time.

Buyer need to excise this OTP within these 14 day include sat/sun/PH.

Prefer to get bank loan approve before excise the OTP.

These 2 week, u need to decide which bank loan to take up.

Then either get your prefer lawyer or any lawyer from the bank panel

Go down the lawyer, exercise the OTP infront of the lawyer

Issue CHQ of 4% and stamp fee.

Then when I get my bank loan, can I request them to include this 4% in their bank loan so I have upfront cash to pay?

==> NO. Bank loan is base on valuation or purchase price whichever lowest.

Eg. Bank valuation this condo 700k and you purchase it at $750k.

Bank will only loan 80% of $700k not that $750K

So, the max bank loan is 560K. The balance 190k u need to pay by cash

Then when do I pay the 15%?

The balance 15%(cash or CPF) will be pay on the completion date

If the buyer for my HDB paying me COV, when do I get this cash? On the 2nd appt?

don't know

since you say the agent is your husband friend. Did you ask him the same question you had post?

Can he answer all your question.

BTW, just for your information.

Buyer for Private property don't need to pay commission.

If ur agent try to ask for commission for the condo, I think time to change agent.

Just to add on although therat has helped answer many of your queries .

Before you purchase and you want to know the valuation, we can speak to the valuer that is on the bank's panel to give an estimate of the valuation.

You do not need to do an actual valuation at this point.

Banks don't do the valuation. Valuation firms do the valuation.

W think you should talk to some professionals first. I seriously agree with therat that you need to change a real estate agent