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pepamint_L

Screwed By Seller's Agent

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COV lower does not equal to pay lower for the flat.

Just for example, my friend was asking to sell his flat at 560k , 40k COV some mths ago.

Almost sold at 560k by 1 buyer who later backout after 1k deposit

He then did another valuation and this time , val is up by 10k to 530k.

Almost sold at 562k by another buyer who also have some problems with the loan.

Then he did another valuation , and this time , val is 540k.

He then lower him COV to 25k , which is kind of more realistic, and successfully sold at 565k.

To him, he bought the house at 300+k. So any amount beyond his buy price + interest is cash profit. To him, he sold the house at a higher price and is happy even thought the COV is lower.

I am sure you are happy to buy the house at a lower COV, but are you paying less for the house if you had committed earlier ?

Edited by Jgal
 

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COV lower does not equal to pay lower for the flat.

Just for example, my friend was asking to sell his flat at 560k , 40k COV some mths ago.

Almost sold at 560k by 1 buyer who later backout after 1k deposit

He then did another valuation and this time , val is up by 10k to 530k.

Almost sold at 562k by another buyer who also have some problems with the loan.

Then he did another valuation , and this time , val is 540k.

He then lower him COV to 25k , which is kind of more realistic, and successfully sold at 565k.

To him, he bought the house at 300+k. So any amount beyond his buy price + interest is cash profit. To him, he sold the house at a higher price and is happy even thought the COV is lower.

I am sure you are happy to buy the house at a lower COV, but are you paying less for the house if you had committed earlier ?

Hmmm....ok see your point. No for the same house, same type, same location, same flr. Commited earlier would have result house unaffordable.I tried similiar type of house, different location, COV would still stay high and people still buy.

For example, some month ago. saw unit C, asking 80K COV. Mature estate, full amenities. Offered 60K till 75K, still don't burged and compromise. Price too high thinking only sucker will buy, guess what ? Someone in my working place actually bite 80K and OTP the house a week later. I just wished it will be a smooth tanscation for him, as last known the house was under 4 names and a divorce case. I pity the uncle and auntie as their son is divorcing and they were forced to sell the house.

At least for me the lessons learnt from the house hunting were

1) Every house have a story behind it. Find it.

2) Get a house you can afford, like and need. eg. great location

3) Ideal case is win-win situation. A happy ending where every parties is happy and no complication.

4) It is about getting not just a house, but a "dream" house.

Your friend maybe a more realistic genuine seller who is willing to let go as long as it is prositive sale. Since it had been delayed twice by buyers.

You are right, did another valuation after OTP and value go up by 10K. Empress Dowager was etremely pleased with the new kitchen playground and recess area to grow her aloe vera, curry leaf plant, pandan leaf and Black Face General herb:D Agent friend give up on me, drag so long still don't buy, I told him, I provided him a training ground to sharpen his negotiation skills and didn't charge him training fee...hehe :P

 

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Agent friend give up on me, drag so long still don't buy, I told him, I provided him a training ground to sharpen his negotiation skills and didn't charge him training fee...hehe :P

how i wish yr boss say the same thing to u.......... :angry2:

please wear other ppls shoes before u give this type of selfish comment.

we are okay that did not manage to earn yr money, after waste effort and time, but with this type of 'friend' , don't want also nvm

fyi, i am a full - time real estate agent..

 

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fiance and I looking for a place for about 3 months. expanded search from one estate to another. missed out on a perfect unit for us (our own fault cos we couldn't decide fast enough). and now no one selling cos holiday season. sad.

anyway, can anyone educate me: under the current HDB rules, and assuming taking bank loan and not HLE, is it possible to offer 5k and exercise OTP on the spot?

my understanding is in order to exercise OTP, you need an LO from the bank. am i wrong?

thanks!

 

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fiance and I looking for a place for about 3 months. expanded search from one estate to another. missed out on a perfect unit for us (our own fault cos we couldn't decide fast enough). and now no one selling cos holiday season. sad.

anyway, can anyone educate me: under the current HDB rules, and assuming taking bank loan and not HLE, is it possible to offer 5k and exercise OTP on the spot?

my understanding is in order to exercise OTP, you need an LO from the bank. am i wrong?

thanks!

Possible. As long as u know yr financial strength well and know banks sure grant u mortgage loan.

LO needs to be submitted only during resale application - to tell hdb that, hello bank grants me this amount...

 

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fiance and I looking for a place for about 3 months. expanded search from one estate to another. missed out on a perfect unit for us (our own fault cos we couldn't decide fast enough). and now no one selling cos holiday season. sad.

anyway, can anyone educate me: under the current HDB rules, and assuming taking bank loan and not HLE, is it possible to offer 5k and exercise OTP on the spot?

my understanding is in order to exercise OTP, you need an LO from the bank. am i wrong?

thanks!

HDB builds flats in tens of thousands... no worries on losing the deal on the perfect flat. :)

better get bank LO to check how much loan u can get before getting the OTP. Troublesome if loan amount is insufficient...

 

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fiance and I looking for a place for about 3 months. expanded search from one estate to another. missed out on a perfect unit for us (our own fault cos we couldn't decide fast enough). and now no one selling cos holiday season. sad.

anyway, can anyone educate me: under the current HDB rules, and assuming taking bank loan and not HLE, is it possible to offer 5k and exercise OTP on the spot?

my understanding is in order to exercise OTP, you need an LO from the bank. am i wrong?

thanks!

When exercise OTP, u need either LO from Bank or HLE from HDB in order for the agent to submit the documents to HDB to book the first Appt date.

 

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HDB builds flats in tens of thousands... no worries on losing the deal on the perfect flat. :)

better get bank LO to check how much loan u can get before getting the OTP. Troublesome if loan amount is insufficient...

Before viewing, buyer should have these "figures" in mind liao. valuation range lah, COV range lah, cash upfront lah, cpf how much to activate lah, mortgage loan amount & tenure lah, agar agar how much to apy monthly instalment with prvailing market interest rate lah, if these "figures" have not even flashed across mind, strongly suggest don't do any house viewing, not to mention "buying".

I paid 5K cheque on viewing day, arranged bank loan within 7 days...

SPRs, self-employed banks very scare to "render" the "umbralle".

Edited by bepgof
 

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hi all, thanks for all your inputs! i'm still a little confused though.

we've already had an AIP of up to 650k valuation. well, in short we are confident we will be able to loan from the banks. we know our financials well and all that.

but the paperwork is making me confused.

1) It is a MUST to produce LO when exercising the OTP right?

2) Banks only issue LO AFTER you submit the valuation report for the flat

3) Means CANNOT exercise OTP on the spot when viewing house right (cos at that point in time, have not applied for LO yet)

4) If the above are true, how to pay 5k on the spot?

haha, I hope I am making sense.

Anyway, not many flats on the market now during holiday season. resuming search on 2nd Jan!

 

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hi all, thanks for all your inputs! i'm still a little confused though.

we've already had an AIP of up to 650k valuation. well, in short we are confident we will be able to loan from the banks. we know our financials well and all that.

but the paperwork is making me confused.

1) It is a MUST to produce LO when exercising the OTP right?

2) Banks only issue LO AFTER you submit the valuation report for the flat

3) Means CANNOT exercise OTP on the spot when viewing house right (cos at that point in time, have not applied for LO yet)

4) If the above are true, how to pay 5k on the spot?

haha, I hope I am making sense.

Anyway, not many flats on the market now during holiday season. resuming search on 2nd Jan!

If you are very confident bank will issus LO to you, you can actually pass the cheque to the seller agent and lock the deal for you on the spot by signing the OTP. Now you have 2weeks to get the LO and both will exercise the OTP then submit up the resale application to HDB. But your agent got to make sure that the seller must agree with the selling price and wait for you this 2weeks to get the LO. Some agent make use of the cheque to get higher price. It will be quite rush to get the LO, best is get those finance consultant to apply LO for you. They can apply afew banks together for you to save time by going down to the bank yrself. This is what I did during my flat and got my LO in 1week time.

Edited by davidbslee
 

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If you are very confident bank will issus LO to you, you can actually pass the cheque to the seller agent and lock the deal for you on the spot by signing the OTP. Now you have 2weeks to get the LO and both will exercise the OTP then submit up the resale application to HDB. But your agent got to make sure that the seller must agree with the selling price and wait for you this 2weeks to get the LO. Some agent make use of the cheque to get higher price. It will be quite rush to get the LO, best is get those finance consultant to apply LO for you. They can apply afew banks together for you to save time by going down to the bank yrself. This is what I did during my flat and got my LO in 1week time.

thanks David!

hmm, so paying 5k doesn't mean exercising the OTP? then what is the benefit of paying 5k vs paying 1k?

 

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1) It is a MUST to produce LO when exercising the OTP right? NO NEED, LO IS TO SUBMIT TOGETHER WITH RESALE APPLICATION ONLY FOR HDB TO "SEE" YOU GOT FINANCIAL BACKER TO BUY THE HOUSE.

2) Banks only issue LO AFTER you submit the valuation report for the flat. BANKS NEED VALUATION REPORT AS EVIDENCE TO MAKE SURE THE CORRECT "AMOUNT", THE "AMOUNT" NOT BASED ON "WORD OF MOUTH".

3) Means CANNOT exercise OTP on the spot when viewing house right (cos at that point in time, have not applied for LO yet)CAN, WHY NOT? AS LONG AS YOU ARE SURE YOU CAN GET THE LOAN WITH 14 DAYS.

4) If the above are true, how to pay 5k on the spot? 1K=OPTION FEE, MEANING SELLER(+COOWNER) PASS YOU THE OTP WITH THEIR SIGNATURE & DATE, YOU HAVE 14 DAYS TO GET LOAN, DURING THESE 14 DAYS, SELLER CANNOT "OFFER" THEIR UNIT TO OTHER VIEWERS. PAY 4K = OTP EXERCISE FEE, ONCE CONFIRMED LOAN. THIS IS A "SAFER" WAY. HOWEVER, IF YOU NEED TO SUBMIT RESALE APPLICATION FAST AND SURE CAN GET LOAN, CAN ALWAYS PAY $5k TO SELLER ON THE SPOT.

Edited by bepgof
 

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hi bepgof, thanks for your detailed explanation. this is so cool.

so as long as i am sure i can get a bank loan, i can actually exercise OTP on the spot.

NICE! i always thought somehow you NEED to submit the LO together with the OTP.

thank you!

 

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