Your search results

Are You Worried About Overpaying On Your Property? Here’s The Secret To Finding Out Its Perfect Purchase Price!

Posted by Jayson Ang on March 14, 2023

| 0

TLDR

Understanding property valuations and their impact on mortgage loans is crucial in the Singapore real estate market. By considering factors such as current asking prices, recently transacted prices, recent highest transacted price, peak price of the development, and valuation price, you can ensure you’re making an informed decision when buying or selling a property. Online tools and professional help can aid in determining the right price to pay or sell for, maximizing your chances of success in property investments. Remember to stay objective, seek professional advice when needed, and be prepared to walk away from a deal if the price doesn’t align with the property’s value.

Amidst the highly competitive property market where prices seem to rise every other day, how can you be certain you’re securing a fair deal on your desired property?

Owning a property in Singapore can be expensive, and the last thing you’d want is to pay an excessive price – leaving you with no choice but to make tough sacrifices, such as forking out an outrageous Cash over Valuation (COV) or facing the prospect of having to offload the property for a less-than-desirable price in the future. Sure, you could get your dream property, but is it worth all the trade-offs?

Ready to start searching for the perfect property?

Learn the 5 essential factors you can use to make sure you get the best price for your purchase.

#1 Current Asking Prices of Similar Units

Getting an understanding of the typical asking prices of similar units in a development can give you a good idea of the expected price range. This will help you determine if someone is trying to sell their property at an unusually high price compared to what is typical.

Take note though – it’s not unheard of for certain units in the same building to be priced differently or at a premium compared to the rest. This doesn’t necessarily mean the property is incorrectly priced; instead, it could be attributed to specific features that make those units worth more. Such features might include an exquisite interior, a higher floor level, or stunning views and orientations.

To ensure that the price of the property is justifiable, why not take a look at photos and videos to get a better understanding of its features?

Alternatively, it would be even better to take a physical viewing to truly appreciate its attributes. Additionally, you can use online property research tools to gather data on asking prices and narrow down the results with additional search filters such as number of bedrooms, floor size, and floor level.

#2 Recently Transacted Prices

Despite asking prices which generally reflect a seller’s desires, transacted prices provide a more realistic indication of what the wider market deems a property is worth. Being aware of the recently transacted prices in a development can help you establish a reasonable sum to pay for a property.

To keep up with market trends and developments, especially in a rapidly evolving market such as the one we’re in right now, it’s advisable to examine transactions up to the past 6-12 months – any older than that could potentially be obsolete and not reflect the current market trends.

Check out these helpful online tools for your research:

The URA’s Private Residential Property Transactions e-service is a must-have tool for anyone looking to delve into the real estate world! With it, you can uncover private property transactions up to the past 5 years, filtering your search by ‘Project’ or ‘Property Type and Postal District’.
Looking to buy a public resale flat? Our HDB Resale Flat Prices e-service is just the tool for you! Get access to transactions from the past 12 months, searchable by ‘Flat Type’, ‘HDB Town’ and even ‘Block No.’ – so you can find the perfect fit for you!

When considering a property’s value, it’s important to keep in mind that recently transacted prices may have a bearing on your loan financing journey down the road.

Many banks will look into property valuation to decide how much to loan, and often times the unit’s purchase price will need to be in line with the recent transactions in order to be approved.

If the price deviates too much, the bank may not be willing to match it with the valuation, which can lead to a decrease in the amount of loan available.

#3 Recent Highest Transacted Price

If you have been keeping track of transacted prices, it’s definitely worth taking a look at the highest transacted price for the development. After all, if you’re planning to buy the property with the goal of selling it in 3 to 5 years and making a profit, this is definitely something to pay attention to.

When it comes to investing in property, it is important to take into consideration the highest transacted price, which could act as a ceiling for pricing you can expect to get in the future. With your investment goals and projected returns in mind, and keeping this upper limit in mind, you can then decide if the asking price is suitable for you.

Gaining valuable insights into the pricing trends of a development has never been easier – thanks to online property portals! Not only can you have a quick look at the highest transacted price, but you can also filter based on unit size (e.g. number of bedrooms) for a deeper understanding.

#4 Peak Price of the Development

Despite being similar to the earlier point, we consider the difference between the two concepts considerable enough to warrant this to be a separate point on its own.

The peak price is not quite the same as the recently-set highest transacted price, as this is based more on the all-time peak price during the property’s lifespan, rather than the freshness of the transaction.

If you buy a property near the highest price the development has ever achieved, making a profit off of it will be challenging. Setting a new record price will be hard to do since potential buyers are likely to be anchored to the peak price, meaning they won’t be willing to pay more.

#5 Valuation Price

Gain insight into a property’s value and you can be sure you’re paying the right price – and who knows, you might just get lucky and stumble upon a great bargain on an undervalued asset!

D.I.Y with Online Evaluation Tools

Technology has made it incredibly easy to access free online evaluation tools for assessing the value of a property – unless you’re an agent, of course.

With just a few details keyed in, these tools can provide an estimated value. But to make sure you’re getting the best price possible, consider pairing the online tools with websites that showcase past property transactions.

This way, you’ll be able to calculate a more accurate valuation of the property and compare it to the asking price.

Professional Help

Rather than conducting an in-depth valuation and analysis yourself, why not let the professionals take care of it? Here are three fantastic options to consider :

Valuation Firm : If you want a more in-depth assessment, you can employ the services of a valuation firm. These companies possess the relevant information and formulas required to consider elements like renovation and upkeep – aspects that may be overlooked by online programs.
Bank Indicative Valuations : For an indicative valuation of your property, reach out to your bank as they often have a list of valuation companies that can help. This valuation will be a key factor in determining your Loan-to-Value (LTV) ratio when you apply for a mortgage loan.
Property Agents: If you’re looking for an accurate estimation of the property’s value, you can get help from trusted professionals. Not only will they assist you in obtaining the best deal, but they’ll make the entire process a piece of cake! For guidance in this regard, you can always reach out to me. With years of experience in helping others with their property investments, I’m more than delighted to be part of your journey.

Conclusion

As an investor, it is absolutely essential to understand the valuation of a property and the right cost to pay in order to maximize your chances of success on your property investment mission.

Leave emotions out of it and, if the price doesn’t add up, don’t be afraid to turn away from the deal. The real estate market is never-ending and there will always be another property that fits both your budget and expectations.

Gaining clarity on the right buying price for your property doesn’t have to be complicated – I’m here to help! I’m always available to provide further guidance and professional advice.

Should You Buy, Sell or Wait?

If you’re reading this, you must be trying to figure out the best course of action right now: is it the right time to buy or sell?

It’s difficult to give an exact answer since everyone’s situation is unique and what works for one person may not necessarily work for you.

I can bring you a wealth of on-the-ground experience and a data-driven approach to provide clarity and direction. From beginners to experienced investors, our top-down, objective approach will help you on your real estate journey.

I can help you by:

Offering Strategic Real Estate Advice – I can help create a comprehensive plan to guide you through your property journey.
Connecting Your Home with the Perfect Buyers – Through stunning visuals, an effective communication strategy, and an in-depth knowledge of the market, we’ll ensure your home is presented in the best possible way to fulfill your goals.

You May Also Like …

Mandarin Top 5

Top 5 Factors : Why Singapore’s Luxury Property Market Still Has Room For Growth

Jayson Ang – December 5, 2024 –

Singapore's luxury property market has been experiencing significant growth in recent years, with private home sales in the Core Central...

All Blog Posts Opinion

Discover 7 Reasons to Sell and Right-Size Your Property

Jayson Ang – April 9, 2023 –

TLDR The increasing trend of right-sizing properties in Singapore is driven by various factors such as lifestyle changes, financial gains,...

Mandarin Top 5

Top 5 : Tips To Plan Your Retirement in Property Investments in Singapore

Jayson Ang – February 17, 2025 –

Planning for retirement is a crucial aspect of financial management, and property investment has emerged as a popular strategy for...

Mandarin Top 5

Top 5 : Best Street Art Murals in Singapore

Jayson Ang – December 17, 2024 –

Singapore, a vibrant and multicultural city-state, is not only known for its iconic landmarks and delicious cuisine but also for...

Mandarin Top 5

5 Factors : The Benefits Of Investing In A Property With Good Access To Green Spaces In Singapore

Jayson Ang – June 30, 2024 –

Real estate investment has always been considered a sound investment decision, as it offers long-term growth potential and a reliable...

All Buying Tips

Is the Singapore Property Market Set for a Dip in 2024?

Jayson Ang – January 26, 2024 –

TLDR The Singapore property market is experiencing shifts with Morgan Stanley adjusting its outlook on major developers. A forecast predicts...

All Blog Posts Buying Tips

Are You Worried About Overpaying On Your Property? Here’s The Secret To Finding Out Its Perfect Purchase Price!

Jayson Ang – March 14, 2023 –

TLDR Understanding property valuations and their impact on mortgage loans is crucial in the Singapore real estate market. By considering...

All Blog Posts Buying Tips

6 Secrets Foreign Investors Are Rarely Told About Singapore’s Real Estate Market

Jayson Ang – January 6, 2023 –

TLDR The Singapore property market presents unique characteristics that foreign buyers should consider. From the high rate of homeownership to...

All Buying Tips

Integrated Developments: Do They Live Up to the Hype? Check Out These Five Factors

Jayson Ang – March 3, 2024 –

TLDR Integrated developments in Singapore offer a one-stop solution for residents by combining residential, commercial, and transport elements in one...

All Blog Posts Buying Tips

Should I Buy In A Newly MOP HDB Or An Older Resale HDB?

Jayson Ang – March 18, 2023 –

TLDR When deciding between a recently MOP-ed HDB property and an older resale HDB property in Singapore, various factors come...

Mandarin Top 5

5 Reasons : Why Investing In Singapore Property Is The Best Decision I Ever Made

Jayson Ang – May 10, 2024 –

Investing in property is a great way to build wealth and secure a stable source of passive income. When it...

All Blog Posts Opinion

Are You Ready to Take on the Singapore Property Market in 2023? 12 Reasons to Be Hopeful (Or Wary)!

Jayson Ang – December 21, 2022 –

2022 sure was a rollercoaster ride for the property market, and the world! From war in Europe to skyrocketing interest...

All Buying Tips Opinion Selling Tips

Is Renting Out Your HDB to Live in a Condo a Smart Move? How Rentvesting Can Help You Save Money

Jayson Ang – February 18, 2025 –

TLDR Rentvesting is a strategy where individuals rent a home in their desired location while purchasing investment properties in more...

All Buying Tips

Could You Still End Up Losing Money When Buying Property in Singapore During a Market Slump?

Jayson Ang – February 14, 2024 –

TLDR When it comes to property investments, timing is crucial. Buying at the right moment is only half the battle;...

All Blog Posts Buying Tips

Are You Considering Paying Off Your Mortgage Loan Ahead of Time? Is It the Right Financial Move?

Jayson Ang – May 11, 2023 –

TLDR When considering mortgage options in Singapore, it's essential to understand the differences between HDB loans and bank loans. HDB...

All Blog Posts Buying Tips

Which Is Better For You: A 99-Year Leasehold Or Freehold Property Tenure?

Jayson Ang – March 25, 2023 –

TLDR When it comes to the choice between leasehold and freehold properties in Singapore, several factors must be considered. Leasehold...

All Blog Posts Opinion

Singapore Property Price Set to Explode Upwards in 2024?

Jayson Ang – March 10, 2023 –

TLDR Understanding the factors influencing property prices in Singapore for 2024 can help in making informed decisions. Despite high rental...

All Blog Posts Buying Tips

Step-By-Step Guide To Buy Resale HDB (Updated March 2023)

Jayson Ang – July 13, 2023 –

TLDR The process of purchasing a resale HDB flat involves steps such as checking eligibility, calculating affordability, registering intent to...

Buying Tips Mandarin Top 5

5 Reasons Why You Should Consider Investing In Singapore Real Estate

Jayson Ang – August 1, 2023 –

TLDR Investing in Singapore real estate offers attractive tax incentives, low cost of living, high rental yields, market reliability, diversification...