Why is HDB Valuation important?
HDB Valuation is important, it allows you to determine the value of a particular interest in a Property. It is often done prior to any Sales Interest or for the purpose of calculating Net Worth.
Market value is described as the projected amount for a property which should be exchanged on the date of valuation between two willing parties, namely the buyer and the seller, in an arm’s length transaction after proper marketing, with proficient, cautious action and not under pressure. In this transaction, both parties do not have a special relationship with each other, which might affect the determination of the property’s price.
There are many different methods to valuate one’s property namely:
- Comparison Method – Comparing recent transactions or similar property
- Income Method – Comparing through Rental yields of similar properties
- Cost Method – Often use to evaluate properties with little or no market transactions like Churches, School Etc.
In a HDB transaction, a HDB Valuation is required for buyers that need HDB Loan. Any purchase that is above the valuation price will have to be paid in Cash, which is also known as Cash Above Valuation (COV).
When do you need a HDB valuation report?
- Taking an HDB housing loan or bank loan
- Using your CPF money to buy the flat or service your loan instalments
The flat valuation is used to determine the financing limits for:
- CPF usage
- Housing loans
- Cash payment
Can I request for a Valuation to be done?
Yes or No, it will depends on what is the purpose of your request.
NO. – With the changes to HDB Resale Procedures, a valid HDB valuation use on resale purpose can only be requested thru HDB website after a valid Option to Purchase “OTP” is granted.
YES. – When you need a valuation for non Resale purposes as follows:
- Divorce
- Asset Value
- Stamp Duty
- Accounting / Audit
- Execution of WILL
But I need to know the valuation of my HDB before listing it in the resale market.
Just click on the following to generate your FREE-OF-CHARGE (FOC) Home Report for reference or Request for a valid valuation report (non-Resale purpose).
Click here to get your FREE Home Report or
Request for a Valuation Report (Non-Resale Purpose).
**Click here to know what a REALTOR will do for you.
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