5 Reasons Why Your House Isn’t Selling – and How to Overcome Them!
TLDR When trying to sell your home, ensure it is competitively priced based on its unique features and the current...
Read More
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 …
Discover Affordable Executive Condos in 2024 Starting at $560,000
TLDR The Executive Condos (ECs) offer affordable options compared to private properties in Singapore. Despite price variations, most ECs remain...
Read More
Singapore’s Property Insights : Where to Find 5 Hidden Gems?
Singapore's Property Insights : Where to Find 5 Hidden Gems? With its booming economy, vibrant culture and attractive regulations, Singapore...
Read More
Top 5 Mistakes to Avoid When Investing in Singapore Real Estate
Investing in Singapore's real estate market can be a lucrative venture, given the city-state's status as a global financial hub...
Read More
Superstitions in the Real Estate Market : How Does it Impact Resale Value?
TLDR When navigating the Singapore property market, it's crucial to consider various superstitious beliefs that can impact your decisions. From...
Read More
Top 5 Japanese Restaurants in Singapore
Singapore, a melting pot of diverse cultures and flavors, offers an incredible array of dining experiences for food lovers. Japanese...
Read More
Top 5 Tea Rooms in Singapore for High Tea
Singapore, a melting pot of diverse cultures and culinary delights, offers an exquisite high tea experience that caters to both...
Read More
Should I Buy In A Newly MOP HDB Or An Older Resale HDB?
TLDR When deciding between a recently MOP-ed HDB property and an older resale HDB property in Singapore, various factors come...
Read More
5 Factors : Why Singapore’s Prime District Properties Are Still In Demand
Singapore's prime district properties continue to be in high demand due to a combination of factors that make them attractive...
Read More
What Factors Contribute To Singapore’s Real Estate Market Exhibiting Less Volatility Than Other Major Cities?
TLDR The Singaporean real estate market has remained stable due to government cooling measures. These include Additional Buyer's Stamp Duty...
Read More
Is the Singapore Property Market Set for a Dip in 2024?
TLDR The Singapore property market is experiencing shifts with Morgan Stanley adjusting its outlook on major developers. A forecast predicts...
Read More
3 Winning Strategies for Skyrocketing Your Property Market Profits (Including Real-Life Success Stories)
TLDR In the dynamic property market of Singapore, maximizing profit is key for sellers and investors. Three essential strategies stand...
Read More
The Lease Buyback Scheme Is A Strategy That Could Help You Retire Comfortably In Your HDB Flat
TLDR The Lease Buyback Scheme (LBS) trend among older Singaporeans is slowly gaining momentum, despite initial reluctance. The scheme allows...
Read More
5 Key Insights to Take Away from the Latest 2022 Cooling Measures
TLDR Affordability of HDB Market: Government is focused on ensuring affordable public housing and may increase supply if needed. Long-term...
Read More
Are You Worried About Overpaying On Your Property? Here’s The Secret To Finding Out Its Perfect Purchase Price!
TLDR Understanding property valuations and their impact on mortgage loans is crucial in the Singapore real estate market. By considering...
Read More
Avoid These 6 Terrible Property “Tips” in Singapore
TLDR When it comes to property advice, it's crucial to be cautious of common misconceptions. For instance, schemes like the...
Read More
Top 5 Tips : Finding the Right Property: Location, Size, and Price in Singapore Real Estate
Singapore, known for its diverse culture, strong economy, and excellent infrastructure, is a popular destination for real estate investments. The...
Read More
My 6 Factors to Consider When Buying a Property in 2023
As the housing market shows no signs of slowing down, many of us may feel left behind, questioning whether it...
Read More
5 Reasons Why Condos Are The Best Real Estate Investment in Singapore
Investing in a condo in Singapore is a popular choice for both locals and foreigners. Condominiums offer a range of...
Read More
5 Reasons Why You Should Consider Investing In Singapore Real Estate
TLDR Investing in Singapore real estate offers attractive tax incentives, low cost of living, high rental yields, market reliability, diversification...
Read More
