is any one still paying over valuation these days esp for landed?

Edited February 12, 20206 yr by peachpeach

10 hours ago, peachpeach said:

is any one still paying over valuation these days esp for landed?

Your bank should be providing foc. Agents do have indications from different banks. Not a big issue nowadays 

46 minutes ago, George Yeo said:

Your bank should be providing foc. Agents do have indications from different banks. Not a big issue nowadays 

I think what TS meant is that is anyone buying a landed house at a price above the valuation price. eg: valuation is at 2M, house is purchased at 2.1M

yes.. quite curious seems like few sellers are all targeting above valuations despite knowing their own valuations. i reckon they are not serious. but i wonder if this is the norm for buyers end up paying cov?

Edited February 13, 20206 yr by peachpeach

not sure how long you had been doing "homework" before you started house hunting. but there are various types of sellers in the market ranging from genuine sellers to those just testing market.

those testing market would normally have the agents put up a ridiculous price for the house. so don't need to be bothered with them as unless you match the ridiculous asking price, chances of them selling is close to zero.

those genuine sellers also fall into various categories :
1. owners who want to sell the house for financial reasons
2. owners who are old and planning to downgrade
3. estate sale

if you encounter a owner who is selling for financial reasons, chances are that the house would be sold at valuation or below valuation since they want to get rid of the house ASAP

for owners who are old and planning to downgrade, they may let go at or below valuation but their children (adults) may convince them otherwise and ask for higher. sometimes the owners may hold off the sale due to sentimental reasons as they may have stayed in the house for more than half of their lives already.

houses undergoing estate sale also have the problems especially if the owner who had passed on has many children. the children will have their own idea on how much to sell the house for and unless the price is agreeable by all the children, chances are the offer will not be accepted even at valuation.

of cos there might be additional categories which I've missed out but these are the sellers whom I encountered when I was house hunting years ago.

personally I feel that buying a house also depends on whether you are fated to buy the house or not. Prior to purchasing my house, I had made offers for 2 other houses which was undergoing estate sale but my offers were rejected as the sellers were asking for much higher prices. the house which I eventually bought was a house which I had declined to view when the property agent asked if I was interested in it. Fast forward a few weeks later, I contacted the agent again to view the house with the intention of just viewing for fun. But my wife and I like the house location and potential for rebuilt and we ending up buying the house.  As for the 2 other houses that our offers were rejected, they were sold 8 months later at about the prices which we had made the offer for earlier but was still lower than the asking price the sellers were holding out for.

if you choose to buy a house at above valuation, do note that you will need to top up the difference in cash as you can't take bank loan for this. this extra cash will end up eating into your budget for renovation.

Snooze hey thanks for your kind reply again. Yes u are absolutely right in the above assessment. i seem to bump too often into cat 2 (those looking to DG). and they are so sentimental about the house and rather rent it out at lousy rates then to sell it at valuation. this is me not even accounting the fact that market is prob weaker w the virus situation. 

theres definitely some luck and fate involved. hopefully i can meet mine soon.. thank u !

Snooze is best 

agree

On 2/13/2020 at 10:44 AM, snoozee said:

not sure how long you had been doing "homework" before you started house hunting. but there are various types of sellers in the market ranging from genuine sellers to those just testing market.

those testing market would normally have the agents put up a ridiculous price for the house. so don't need to be bothered with them as unless you match the ridiculous asking price, chances of them selling is close to zero.

those genuine sellers also fall into various categories :
1. owners who want to sell the house for financial reasons
2. owners who are old and planning to downgrade
3. estate sale

if you encounter a owner who is selling for financial reasons, chances are that the house would be sold at valuation or below valuation since they want to get rid of the house ASAP

for owners who are old and planning to downgrade, they may let go at or below valuation but their children (adults) may convince them otherwise and ask for higher. sometimes the owners may hold off the sale due to sentimental reasons as they may have stayed in the house for more than half of their lives already.

houses undergoing estate sale also have the problems especially if the owner who had passed on has many children. the children will have their own idea on how much to sell the house for and unless the price is agreeable by all the children, chances are the offer will not be accepted even at valuation.

of cos there might be additional categories which I've missed out but these are the sellers whom I encountered when I was house hunting years ago.

personally I feel that buying a house also depends on whether you are fated to buy the house or not. Prior to purchasing my house, I had made offers for 2 other houses which was undergoing estate sale but my offers were rejected as the sellers were asking for much higher prices. the house which I eventually bought was a house which I had declined to view when the property agent asked if I was interested in it. Fast forward a few weeks later, I contacted the agent again to view the house with the intention of just viewing for fun. But my wife and I like the house location and potential for rebuilt and we ending up buying the house.  As for the 2 other houses that our offers were rejected, they were sold 8 months later at about the prices which we had made the offer for earlier but was still lower than the asking price the sellers were holding out for.

if you choose to buy a house at above valuation, do note that you will need to top up the difference in cash as you can't take bank loan for this. this extra cash will end up eating into your budget for renovation.

I fell into snooze scenario in which my current house under construction was actually I had rejected even before viewing was conducted simply of the house number. For whatever reasons, it was a friend who convinced me to buy it at below banks valuation.