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schiz0id

What Is A Reasonable Cov?

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good point

but does this happen to most buyers?

It doesn't happen to all locations.

My wulu location's valuation appreciate only ~10K every 3 months haha.

Buyers who are shopping for resale flat shouldn't bet on this. They should still cater enough cash for their COV + agent fee + 5% downpayment (if take bank loan) etc.

 

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The data updated over the web ought to be after 2nd appt when transaction is deemed completed. Many things miggt happen which result in cancellation of transaction between 1st & 2nd appt.

That page actually reflects all resale prices (including COV) for approved resale transactions after their 1st appointment.

My resale transaction appeared on the page after 1 week after my 1st appointment.

 

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The data updated over the web ought to be after 2nd appt when transaction is deemed completed. Many things miggt happen which result in cancellation of transaction between 1st & 2nd appt.

You may be right. :)

Anyway I am just sharing that I was able to see my resale transaction on that page before my 2nd appointment... haha unless I remembered wrongly lor.

 

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May be the same block, same range of storey, have same selling price, almost at the same time?. :furious:

You may be right. :)

Anyway I am just sharing that I was able to see my resale transaction on that page before my 2nd appointment... haha unless I remembered wrongly lor.

 

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That page actually reflects all resale prices (including COV) for approved resale transactions after their 1st appointment.

My resale transaction appeared on the page after 1 week after my 1st appointment.

I am sure my appeared only after the second appointment as I kept a lookout for my transaction.

 

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The question should be who decide (or control) the COV rather than what is a reasonable COV as there no such thing as reasonable COV. Affordable - may be?

Valuation amount is the fair value assigned to a property on a willing buy willing seller and for what it is basis and usually COV should be the extra that the buyer is willing to pay due to personal reason that valuer cant and wont quantify.

 

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There's really no guideline for COV. Do not forget that the actual worth of the apartment you're looking at is already posted as the valuation price. Anything above that simply reflects one or a combination of several things:

  • Demand greater than supply
  • Valuation lagging compared to actual current market value
  • Greed of the seller
  • Desperation of the buyer

The valuation report would already have taken into account all the tangible attributes, including location, accessibility, amenities, floor level, facing, recent past transactions, renovations and so on.

Regardless, the seller is free to set his/her desired COV price and wait for buyers to match it. If there are no matchers because the unit simply isn't worth the asking COV, the seller either does not sell, or lowers his/her expectations. You as a buyer should keep in mind that you will need to budget for renovation besides the upfront COV. All told, you'll be needing to come up with 100k easily, so don't get carried away with the COV bidding.

Very often, it is the agents that are persuading sellers with phrases like "80k can try" in order to represent them in the sale and get the commissions. I suggest you try to talk to the owners themselves if you're really interested, and have your chequebook ready to show that you're making a serious offer. Otherwise, walk on by, and something better may come up.

Out of curiousity, which area can a low-floor EA command 80k?

Speaking thru experience as a seller 2 months ago and buyer just a month ago, all i can say is, seller can ask for sky high COV. But it all boils down to "Will buyers be willing to give?" :-)

I didn't set a COV when i sell my price. Did and open house, few ppl offered and this lady who bought my place offered me 50k. We deal and shook hands. So it's partially luck oso :-)

Btw the unit i sold was a 4A In Pasir Ris, low floor :)

Edited by PoppyLove
 

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Speaking thru experience as a seller 2 months ago and buyer just a month ago, all i can say is, seller can ask for sky high COV. But it all boils down to "Will buyers be willing to give?" :-)

I didn't set a COV when i sell my price. Did and open house, few ppl offered and this lady who bought my place offered me 50k. We deal and shook hands. So it's partially luck oso :-)

Btw the unit i sold was a 4A In Pasir Ris, low floor :)

I must say u are very lucky to get 50k

Most probably for these reasons: Very near MRT or Very nice decor.

Perhaps the lady was eyeing your area for some particular reasons like near to family members or workplace

Other than that, few sensible buyers will actually pay 50k in Pasir Ris for none of the above

 

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I must say u are very lucky to get 50k

Most probably for these reasons: Very near MRT or Very nice decor.

Perhaps the lady was eyeing your area for some particular reasons like near to family members or workplace

Other than that, few sensible buyers will actually pay 50k in Pasir Ris for none of the above

She's a retiree. Yea i think she's been eyeing my area too. She was from Jurong. And she purchased my flat in cash... No loan :-O

She had initially deposit $1k to another seller. But decided to forego that deposit and purchase my flat.

 

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