07 March 2014

My Agent Managed to Secure the 2-Room Unit at $250K!

Just now I went to meet the seller and his agent, I saw the valuation report and the valuation price is $260K, while I took a closer look at the unit, my agent managed to confirm the deal with seller's agent at $10K below valuation! After that, all of us sat down together including the owner, and my agent officially offered $250K in front of the owner and he agreed, it was easier than I thought. After that I checked with my agent about the last offer, he said there were offers ranging from $230K to $250K, somehow the owner decided to sell it to me, but I can sense that he is very eager to sell, heard from my agent that the flat belongs to his father and he passed away so the unit is left to the him but he already has a HDB flat so he has no choice but to sell it. I also scouted around the unit and the block, looks clean, doesn't look like there were any Ah Long harrassment, the neighbourhood is also very peaceful, the people there also seems nice, the area is also very clean unlike my current place, litter everywhere.

But unfortunately, the seller has some paperwork not yet done and due to that, they are not allowed to grant me the Option To Purchase (OTP), I heard it's because their resale checklist has expired, there is a 7 days limit, and the agent is using a hardcopy version instead of the online version, so the agent is trying to get the owner to log in to do the checklist, but unfortunately the owner does not have SingPass, and the owner seems worried that I will back out but come on, I didn't go all the way to back out, I even brought along $1000 cold hard cash ready to pay for the option, of course I don't mind waiting since he is selling the flat to me at $10K below valuation, anyway the seller's agent assured that she will check with HDB on whether they can proceed to grant the option even though the checklist is expired, worse comes to worst, they will submit the checklist again, I just hope they can get it done before the valuation report expires or else they will have to redo and pay the valuation fees again, it's $130+, I don't mind waiting because $250K is totally within my budget, in fact I told my agent to look for a unit that is $250K and lesser.

I can also understand why the owner is so eager to sell because his valuation report expires on coming 24 March, if the valuation is done again, according to my agent, usually the price will be slightly lowered, so if the valuation price is lowered, of course buyers will lower the offer price, but I don't mind paying $250K even if the valuation price is lowered, worse case they revalue at $255K, I will just continue to pay $250K, still $5K below valuation. I also don't want to take advantage of the seller, Singaporean must be nice to Singaporean! But it makes sense why revaluation will be lower because if the seller can't get any buyer at $260K, there is no point revaluing it higher, the logical move is to revalue it lower so buyers will bite, same logic as in supermarket where they lower the price of products that is going to expire to entice shoppers. So now you know why housing price is skyrocketing, because there were buyers willing to bite into the high prices resulting in the current sky high prices!

Oh another reason why previous offers were so low is because the house condition is very outdated, but for me and wife we feel that the bedroom and living room is okay, only ugly part is the kitchen, my wife don't like the toilets though, she say they are old but they look okay to me, I hope I can get the kitchen and toilets done for below $10K.


Anonymous said...

Bro, I cannot fathom why you would choose to buy 2-rm flat. Is it about 50SQM?

That def is too small to raise or even hope to raise a family.

marrythaigirlsingapore said...

Haha, that unit is 46SQM, smaller than you thought!

Anyway my agent was also trying to look out for a 3-room within my small little budget, he also thought why not I get a 3-room at least, my colleague, my mother, everybody thought I should get a 3-room at least, I also want but it's over-stretching for me, I'm working alone, paying for it alone, of course to play safe I would get something comfortable to repay.

And not as if I cannot upgrade in the future, I'm a first timer by the way ;)