Advice needed: buying property for the first time

[TravieJackie]

Should I make my offer in front of both seller agent and seller? There's no agent representing ys.

Also, what should I look out for in the house before buying?

After giving a cheque, what are the expected procedures to safeguard ourselves?

We have already done an loan in approval.

Thank you in advance! !

[august]

buying hdb or private?

[TravieJackie]

We are buying private.

[eng81157]

Should I make my offer in front of both seller agent and seller? There's no agent representing ys.

Also, what should I look out for in the house before buying?

After giving a cheque, what are the expected procedures to safeguard ourselves?

We have already done an loan in approval.

Thank you in advance! !

must ascertain if the sellers are legit owners of the property. agents have a database to do that.

[TravieJackie]

Ok. This is before giving cheque right?

Should I make the offer in presence of owner so agent cannot try to be funny?

[eng81157]

Ok. This is before giving cheque right?

Should I make the offer in presence of owner so agent cannot try to be funny?

but why should the agent be funny? the unit sells, he gets money. he will do his best to close the deal, but surely to the interest of the seller.

[eng81157]

Ok. This is before giving cheque right?

Should I make the offer in presence of owner so agent cannot try to be funny?

yes, before giving any cheques (even for the OTP)

[TravieJackie]

I've heard stories of agents pushing up prices.

Ok, what other things I should look out for the house itself?

[Cyberknight]

Fixtures. What items r included or excluded?

[eng81157]

I've heard stories of agents pushing up prices.

Ok, what other things I should look out for the house itself?

that's normal. it's all part of the negotiation process

you aren't likely to find all flaws in one or two viewing sessions. then again, the viewing sessions shouldn't be focused on flaw finding. go in AM and PM, bring family members - old and young

[TravieJackie]

We went day and night. Didn't bring family members coz they aren't staying there.

What kind of main fixtures are usually included anyway?

Really appreciate all your help! ;)

[xtreme_46]

when u sign OTP..u all got verfiy the seller IC or not? I heard before the OTP sign but later buyer found out the seller name on OTP is not the owner

[eng81157]

when u sign OTP..u all got verfiy the seller IC or not? I heard before the OTP sign but later buyer found out the seller name on OTP is not the owner

:doh: :doh: the buyer either got screwed up by his agent or geh kiang try to DIY without the know-how

[eng81157]

We went day and night. Didn't bring family members coz they aren't staying there.

What kind of main fixtures are usually included anyway?

Really appreciate all your help! ;)

don't fret on the minor stuff. if you love the place, you won't kiss it goodbye just because of a broken door knob.

when you purchase the apartment, it will be in "as is" condition

[TravieJackie]

Ya lor. Safeguarding ourselves coz dunno much. So asking and to be sure now. No buyer agent also coz we found a unit and approach the seller agent direct.

So make sure there's documents he's the owner of the place. Check name with ic. What other documents do I need to check?

[TravieJackie]

don't fret on the minor stuff. if you love the place, you won't kiss it goodbye just because of a broken door knob.

when you purchase the apartment, it will be in "as is" condition

How to ensure? What if when we takeover the unit, something has spoilt?

Btw, after cheque given and they accept, we will have otp right? How soon must we pay?

[eng81157]

How to ensure? What if when we takeover the unit, something has spoilt?

Btw, after cheque given and they accept, we will have otp right? How soon must we pay?

there will surely be defects. but will they affect your decision to purchase? for me, i didn't bother to check before my purchase since i planned to have a overhaul of the apartment

[TravieJackie]

Ok. We're not planning to do much reno.

Btw, if I use up all my cpf OA, what will happen will when I reach retirement age?

Assuming I don't put much back in coz I am self employed.

[august]

Ok. This is before giving cheque right?

Should I make the offer in presence of owner so agent cannot try to be funny?

no need.
but get your lawyer to verify the owner of the property before writing out cheque.

[august]

Ya lor. Safeguarding ourselves coz dunno much. So asking and to be sure now. No buyer agent also coz we found a unit and approach the seller agent direct.

So make sure there's documents he's the owner of the place. Check name with ic. What other documents do I need to check?

since u not using agent, the seller's agent will be very happy to serve you and close the deal as he does not need to share commission with another agent.

[propertyhans]

when u sign OTP..u all got verfiy the seller IC or not? I heard before the OTP sign but later buyer found out the seller name on OTP is not the owner

Verify ic not enough....can easily change with a piece of sticker. Please do a ownership check to make sure he is owner and make sure ALL owners name is in otp. Ask the seller agent to produce....he needs to pay to get it. Both names must be inside in case skali husband agree but wife disagree.

Also Don't use sp services bill to verify ownership as he could be tenant.

[august]

can also ask for the quarterly maintenance slip/receipt that shows name of owner.

[DKSG]

Ok. We're not planning to do much reno.

Btw, if I use up all my cpf OA, what will happen will when I reach retirement age?

Assuming I don't put much back in coz I am self employed.

This stmt is strange, self employed, yet got OA to use?

Always leave some back door in case next time no money to pay instalments. OA pays 2.5% interest. Leave as much in there as u can. No one can guarantee future income. But a fat OA can guarantee house won't Cheong kong by bank. Try to have 2 yrs instalments worth in OA.

DKSG

[newbie11]

In current context, will be surprised if agent not hungry to push your cheque if your offer is reasonable.

[proud owner]

Verify ic not enough....can easily change with a piece of sticker. Please do a ownership check to make sure he is owner and make sure ALL owners name is in otp. Ask the seller agent to produce....he needs to pay to get it. Both names must be inside in case skali husband agree but wife disagree.

Also Don't use sp services bill to verify ownership as he could be tenant.


verification of ownership is the job of the agent ...

its a requirement by CEA

[proud owner]

can also ask for the quarterly maintenance slip/receipt that shows name of owner.

yes this u need to be sure that that pay all outstanding maintenance charges

but when u meet with your lawyer ... tell the lawyer to ensure that seller clears all such charges

also to make sure that they also give your resident passes ...

some sellers have multiple units ... they keep the passes for own use

[3C]

Ok. We're not planning to do much reno.

Btw, if I use up all my cpf OA, what will happen will when I reach retirement age?

Assuming I don't put much back in coz I am self employed.
It may not be a bad move if you are near retirement and has saved up sizeable cash. What I understand is when you reach 55 all OA will be converted to retirement account so if you have not reach the minimum sum you may not able to continue to use your OA to pay the monthly installment or use to reduce your housing loan anymore.

[TravieJackie]

Ok, noted on outstanding maintenance charges.

I have OA coz I used to work for others. I plan to pay installment by cash and not cpf. Use up cpf coz cannot take out when old and lock in the retirement account. Might as well use for house.

[eng81157]

Verify ic not enough....can easily change with a piece of sticker. Please do a ownership check to make sure he is owner and make sure ALL owners name is in otp. Ask the seller agent to produce....he needs to pay to get it. Both names must be inside in case skali husband agree but wife disagree.

Also Don't use sp services bill to verify ownership as he could be tenant.

just ask for property tax document

[evolutionx]

easiest way is to do your own homework (in case you are worried the documents can be doctored).

spend $5 and use the INLIS system to check the size and registered name of owner. you'll get the info almost instantly. (there's a link with an example of the document so you understand what info you are getting)

http://www.inlis.gov.sg/LINNS/LINNS-LOIS.aspx?strService=LINNS&strProduct=LOIS

lastly, always make sure the 4% to exercise is made to the seller's lawyer under their CVY account and NOT directly to seller.

[TravieJackie]

wow, evolutionx, very clear. So the agent should provide the details also right? I'll do my due diligence and also get documents from them/seller agent too.

[evolutionx]

wow, evolutionx, very clear. So the agent should provide the details also right? I'll do my due diligence and also get documents from them/seller agent too.

yes, by right agent can also do for you, but from my experience, not all agents will want to spend the $5.

so for you to get peace of mind, just spend your own $5 and show them you have done your due diligence :)

good luck!

[TravieJackie]

http://www.propertyhub.com.sg/singapore-property-information/buy-and-selling-procedures/steps-by-steps-guide-to-property-buying.html

I think the above steps should help.

So, I have gotten an an approval from a bank to take the loan. This is only 1 bank. Any recommendation for bankers that can do an assesment for me once I'm ready to purchase?

[evolutionx]

http://www.propertyhub.com.sg/singapore-property-information/buy-and-selling-procedures/steps-by-steps-guide-to-property-buying.html

I think the above steps should help.

So, I have gotten an an approval from a bank to take the loan. This is only 1 bank. Any recommendation for bankers that can do an assesment for me once I'm ready to purchase?

DBS so far the most competitive. last quote from them was 0.9 + sibor for 3 years followed by 1.25% + sibor for 2 years.

UOB quoted 1.3% all in for first year and 1.6% second year (and the sky's the limit thereafter I suppose). in all my years, i have never been successful doing business with UOB due to their stringent terms.

smaller boutique banks may be more competitive in terms of pricing, but my personal preference is to not keep jumping banks every 2-3 years to shop around for a few points lower. by the time you spend legal fees, valuation and time, it might not be that worth it for a couple of points.

the key is to offer your business to multiple banks and see which gives you the best deal. some may offer more attractive deals if you're willing to lower your LTV.

lastly, I have a clause in all my loan agreements that allows for paying down loans in quantums of xxxk with no penalty after the min lock in period. therefore, whenever there is excess cash, it's thrown into the loan.

remember that everyone's loan experience is different, so what works for me may not necessarily work for you. good luck!

[TravieJackie]

anyone got DBS, UOB or Hong Leong bankers to intro then?

I heard Hong Leong rates are also pretty good.

[Cupcakes]

BOC the best now. 0.75% + sibor

[TravieJackie]

Is it crucial to check property tax has been paid up before buying.

, let's say I want to make an offer in front of owner. I should only give cheque after verifying ownership and in in exchange of an otp right?

[eng81157]

Is it crucial to check property tax has been paid up before buying.

, let's say I want to make an offer in front of owner. I should only give cheque after verifying ownership and in in exchange of an otp right?

this should be sorted out by your lawyer. the owner must pay up the taxes on a pro-rated basis, while u pay what remains for the year.

depends on whether you choose to make the offer in the presence of the owner. the owner's agent may not want to do so, since there is a potential conflict of interest.

[TravieJackie]

Why is is there a conflict of interest?

Also, may I know what is the average asking and closing price difference in terms of percentage for pte condo? I know every case is different but hope someone can enlighten me.

Thanks!

[eng81157]

Why is is there a conflict of interest?

Also, may I know what is the average asking and closing price difference in terms of percentage for pte condo? I know every case is different but hope someone can enlighten me.

Thanks!

the agent represents the owner and the owner's interest is to extract the highest offer for the unit. you, on the other hand, will want to purchase the property at the lowest possible price.

use the median psf posted on URA as a guide. look up propertyguru for similar units and their asking price. one downside of not having an agent represent u is that you don't have access to details of transaction being done. they can tell you which floor transacted at what price in a period of time.

[TravieJackie]

But ura has caveat lodge and we use info from there.

[eng81157]

But ura has caveat lodge and we use info from there.

ura's website won't tell you the block number or height of the unit

[TravieJackie]

So, what's a general guideline in giving offer price to asking price? What's the average people usually offer at?

Also, should I get more than 1 bank to value the house?

[mcmlxxvi]

So, what's a general guideline in giving offer price to asking price? What's the average people usually offer at?

Also, should I get more than 1 bank to value the house?

there really isnt a hard n fast rule to this. it also depends on how much you like the unit (the liking you dont need to show, just keep to yourself).

just make sure bank is able to match the asking price first, if not, ask them max max can meet what price.

if valuation not a problem, then u need to assess vis a vis those similar units in the same projects, if not, of nearby comparable ones. then start from a lower base say 10-15% below from the asking if its deemed reasonable. then work your way up.

some agent may tell u, can try at xxx price, last offer yyy rejected. up to u to believe. just issue a cheque with ur offer and see if the agent will accept. action speaks louder.

[eng81157]

So, what's a general guideline in giving offer price to asking price? What's the average people usually offer at?

Also, should I get more than 1 bank to value the house?

certainly get a bank valuation first. you can offer based on the median psf on URA website.

if you are the pursuant, please don't lowball. there is absolutely no reason why the owner needs to sell the unit at 10-20% below market value, assuming it isn't a fire sales

[TravieJackie]

ok, noted. So less 4-5% is reasonable right?

What are the steps I should take to make an offer on the spot? Do I let the agent know and give the cheque of 1% of offer price with the owner's name?

And how soon should I be receiving the OTP after?Is this even safe? Is it true that there are cases where they don't give the OTP and buyer lose the 1% offer money?

So, what should I do to safeguard myself? I want to give cheque to show sincerity.

[eng81157]

ok, noted. So less 4-5% is reasonable right?

What are the steps I should take to make an offer on the spot? Do I let the agent know and give the cheque of 1% of offer price with the owner's name?

And how soon should I be receiving the OTP after?Is this even safe? Is it true that there are cases where they don't give the OTP and buyer lose the 1% offer money?

So, what should I do to safeguard myself? I want to give cheque to show sincerity.

has the owner accepted your offer?? if not, don't jump the gun by writing a cheque (and eco-friendly, save some trees in case your offer is rejected)

if the offer is accepted, you will get the OTP immediately once the cheque of 1% is issued by you. please and please, verify the owner's identity.

if you aren't familiar with the process, please engage an agent. however since talks are already so advanced, it is unlikely the owner's agent will want to co-broke and share his commission. hence, you may have to fork out some extras should you decide to engage one.

[sh]

ok, noted. So less 4-5% is reasonable right?

What are the steps I should take to make an offer on the spot? Do I let the agent know and give the cheque of 1% of offer price with the owner's name?

And how soon should I be receiving the OTP after?Is this even safe? Is it true that there are cases where they don't give the OTP and buyer lose the 1% offer money?

So, what should I do to safeguard myself? I want to give cheque to show sincerity.

I never give cheque to "show sincerity". Make the offer, tell to agent to confirm if the owner accepts the price within a certain period of time, in return for the cheque. If yes, then you issue the cheque and expect the OTP within 24hours. No point wasting time by passing cheque here and there. If the owner is serious about selling, they will either accept your price or will negotiate. If not, they are not serious about selling or the agent is fishing. Don't waste your time.... move on.

Regarding what price to offer. Depends on how much you like the unit and if it's one of a kind. I have made my best buys by accepting the seller's asking price (after checking with bank for valuation) for rarely available units. Might miss an opportunity.

For not so rare units, try a lower price, if the owber doesn't bite, there are others and at least you know how low you can try your luck with.

[TravieJackie]

ok, thanks!

[TravieJackie]

Do you guys guys inspect the house before taking over?

Anyone met with problems before?

[ysyap]

Do you guys guys inspect the house before taking over?

Anyone met with problems before?Surely must inspect lah... unless you are planning to do major overhaul renovation. Even so, also must interview neighbors, especially downstairs to check if there's leakage. Full expenses to be bore by you after signing on the dotted line... :eek:

[eng81157]

resale units are normally sold in "as is" condition, hard to wrangle owner's hand to restore it to pristine.

[sh]

Surely must inspect lah... unless you are planning to do major overhaul renovation. Even so, also must interview neighbors, especially downstairs to check if there's leakage. Full expenses to be bore by you after signing on the dotted line... :eek:

You do all the inspections you want before making the offer. You decide on whether to make the offer based on whatever defects there are, or negotiate with the owner for better price.

After the offer, the house is sold based on "as is" condition. The owner is not going to entertain you.

Go in with your eyes open....:scared-5:

[ysyap]

You do all the inspections you want before making the offer. You decide on whether to make the offer based on whatever defects there are, or negotiate with the owner for better price.

After the offer, the house is sold based on "as is" condition. The owner is not going to entertain you.

Go in with your eyes open....:scared-5:Yes yes.... slash price if condition of house is really bad. Tiles broken, window panes loose, tap leaking, etc so cut here cut there can easily slash couple of tens of thousands of dollars! :47:

[TravieJackie]

Surely must inspect lah... unless you are planning to do major overhaul renovation. Even so, also must interview neighbors, especially downstairs to check if there's leakage. Full expenses to be bore by you after signing on the dotted line... :eek:

but even if check before taking over and realise there's something damaged that wasn't there before i take over the house, how ah?

not like owner will entertain also right?

[eng81157]

but even if check before taking over and realise there's something damaged that wasn't there before i take over the house, how ah?

not like owner will entertain also right?

you dont really get the concept of "as is", do you?