First time purchase of pte condo

Hi..this is my first time purchase of pte condo, a subsale unit yet to be TOP.

As a first timer, I have some queries...appreciate if someone can advise me accordingly. Upon agreement of the purchase price (owner is considering but I think 99% he will close the deal with us), what shd we (buyers) do?

1) I have not met up the owner..but only the agent to look at the floor plan. What other docs do I need to substantiate the ownership?

2) What docs do we need to sign?

3) Do we have to engage a lawyer?

4) What is the reasonable amt of option/deposits amt to be paid? And payment is to be made to the owners? or to the lawyers?

5) I do not have my agent..so all liaison is between myself and the seller's agent. My understanding is that we need not pay commission/fees to that agent? Is that right?

Any other advice is welcome and appreciated..thanks...

Go read this and avoid wasting your (and forummers here) time.

http://www.propnex.com/BuyersGuide.aspx

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Originally Posted by bebe75

Hi..this is my first time purchase of pte condo, a subsale unit yet to be TOP.

As a first timer, I have some queries...appreciate if someone can advise me accordingly. Upon agreement of the purchase price (owner is considering but I think 99% he will close the deal with us), what shd we (buyers) do?

1) I have not met up the owner..but only the agent to look at the floor plan. What other docs do I need to substantiate the ownership?

2) What docs do we need to sign?

3) Do we have to engage a lawyer?

4) What is the reasonable amt of option/deposits amt to be paid? And payment is to be made to the owners? or to the lawyers?

5) I do not have my agent..so all liaison is between myself and the seller's agent. My understanding is that we need not pay commission/fees to that agent? Is that right?

Any other advice is welcome and appreciated..thanks...

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1) u shld have gotten a lawyer by now, the lawyer can do a search on the unit and verify ownership or whether the ppty in question is under any encumbrance

2) ur agent shld furnish u a letter of offer where u sign on it along with the 1% cheque

3) yes!

4) option is 1%, cheque written out to the ppty's owner. (this is why u need a lawyer to verify whether the name given to u by agent corresponds with lawyer's search)

5) buyer no pay commission.. in this case the seller's agent will say he/she is also acting for both seller and buyer.

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Originally Posted by mcmlxxvi

Go read this and avoid wasting your (and forummers here) time.

http://www.propnex.com/BuyersGuide.aspx

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Yes must add that you DON'T need to engage an agent contrary to what the site tells you for Buying Property. However, make sure you engage a lawyer whom you trust. Average cost charged should be 2.3-2.8k depending on whether it is sub-sale, whether CPF is used, bank loan is used etc. The bank will offer legal subsidy average between 2-2.5k depending on the bank and amount borrowed. Thus you can offset the 2.3-2.8k legal fees with this 2-2.5k subsidy from bank end up paying few hundreds only or none at all for legal fees.

Quote:

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Originally Posted by bebe75

Hi..this is my first time purchase of pte condo, a subsale unit yet to be TOP.

As a first timer, I have some queries...appreciate if someone can advise me accordingly. Upon agreement of the purchase price (owner is considering but I think 99% he will close the deal with us), what shd we (buyers) do?

1) I have not met up the owner..but only the agent to look at the floor plan. What other docs do I need to substantiate the ownership?

2) What docs do we need to sign?

3) Do we have to engage a lawyer?

4) What is the reasonable amt of option/deposits amt to be paid? And payment is to be made to the owners? or to the lawyers?

5) I do not have my agent..so all liaison is between myself and the seller's agent. My understanding is that we need not pay commission/fees to that agent? Is that right?

Any other advice is welcome and appreciated..thanks...

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Do not assume that you have closed the deal. Especially in today's market where the seller has the upper hand. You will only know that you have secured the purchase when the seller hand over the Option To Purchase to you. Your agent has not even ask you to make an offer to purchase. Check with seller's agent. If your offer is good he should have come after you to collect the 1% deposit.

Thanks for all the valuable inputs..at least I know where to read up to get myself prepared.

The agent had just called and requested to meet up next week. He asked me to bring my cheque book along. I have yet to consult my bankers/lawyers.

Qn is now that do I pay the 1% option fee before checking with my bank/lawyer?

Quote:

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Originally Posted by bebe75

The agent had just called and requested to meet up next week. He asked me to bring my cheque book along. I have yet to consult my bankers/lawyers.

Qn is now that do I pay the 1% option fee before checking with my bank/lawyer?

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yes u shld

if u have a price in mind, check for bank's valuation as well

It is better to check with the bank valuation if you need the max limit of home finance.

Thanks again for all the advices..I think I will call my bankers first thing in the morning..

Quote:

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Originally Posted by bebe75

Thanks for all the valuable inputs..at least I know where to read up to get myself prepared.

The agent had just called and requested to meet up next week. He asked me to bring my cheque book along. I have yet to consult my bankers/lawyers.

Qn is now that do I pay the 1% option fee before checking with my bank/lawyer?

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If the agent is calling for a meetup...hmmm..could be meaning they want to neg deal... not necessary closing the deal.

unless they tell you to issue a chaque to xxxx with yyyy amount to sign the OTP.

You should be checking on the bank valuation on the unit and get a lawyer to act for you.

Valuation in today's market can differ a lot among different valuers / bankers.

Being conservative, some valuers or HDB only base on most recent transacted price of a similar unit. But if everyone just buy based on that, then property price will not have gone up. It will remain stagnant or move slowly upwards.

So what causes valuation to go up? It is a "dirty" business. Valuers / Bankers will match whatever new launch prices that Developers intend to sell at. But for resale, they look at most recent transacted prices.

Ultimately, the Bankers look at your financial credibility (income & savings) to determine if they want your loan business badly, and also assess the price downside risk => If the benefits outweighs the cons => They will value the property accordingly to match buyer's loan to meet the seller's price expectation.

Quote:

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Originally Posted by Blue

Valuation in today's market can differ a lot among different valuers / bankers.

Being conservative, some valuers or HDB only base on most recent transacted price of a similar unit. But if everyone just buy based on that, then property price will not have gone up. It will remain stagnant or move slowly upwards.

So what causes valuation to go up? It is a "dirty" business. Valuers / Bankers will match whatever new launch prices that Developers intend to sell at. But for resale, they look at most recent transacted prices.

Ultimately, the Bankers look at your financial credibility (income & savings) to determine if they want your loan business badly, and also assess the price downside risk => If the benefits outweighs the cons => They will value the property accordingly to match buyer's loan to meet the seller's price expectation.

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it also depends on the bank's liquidity and strategy

one conservative bank who feels current property prices as 'stretched' will value it lower ..
one who has difficulty raising funds, will also value it lower ..

one who has shit loads of cash (like DBS) who $ from POSB .. will tend to give good valuations ,..to attract more to take up loans with them ..