Normal lar for the buoyant market nowadays....

But bottomline is don't deviate by 10% from the valuer final quote lor...more than that only cash rich afford. Imagine fork out downpayment + top up another 100k for the value difference.

But as far as I know, people still buy if they really like the proprety a lot, 100k is nothing for the cash rich...

Thumb up.

This post has been edited by limfgn: Jan 19 2011, 12:04 PM

Very Normal things..

http://www.themalaysianinsider.com/busines...ith-rents-down/

someone posted the above artile in another thread, i just borrowed the link. better take into consideration when wanna buy overvalued property.

i would say what normal nowadays is all real estate agents selling at a really really high marked up price (no offence to agents) due to so-called "current market sentiment" despite actual land value and such (as advised or valuated by bank valuer).

The result: you will have to put a downpayment way more than the 'normal' 10percent if you still want to go for the unit as bank still only offers 90percent maximum from the valuer's price.

for a friend of mine, it meant 3% booking fee "burned" cause he had to back out at last minute and the agent and owner blames my friend for not valuating the unit at first and since booking fee paid is non-refundable (or so they say).

in my case, i avoided such case, it was ridiculous to hear the agent explained that another unit was bought by a singaporean at the 'inflated price' so all owners also don't want to sell at lower price than the "market price" so called. even had an opportunity to meet an owner who said his previous agent marked up too high until 1 year also cannot sell his house so finally change to another agent. I really dunno whether owners/agents playing with the price or really "market sentiment".

in any case, i'd just use own due diligence. cheers and no offence to anyone.

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Added on January 19, 2011, 3:08 pmoh by the way, if you need to still buy the unit, "something" can be worked out between agent, valuer and bank officer to offer the needed loan...thats how the market price is keep on rising and way above so called market value. but dont buy when the "market sentiment" is going down...

This post has been edited by attahun: Jan 19 2011, 03:08 PM

If bank already says that the property is overpriced, why do you still want to purchase it.

And if you insists on buying an overpriced property, then you just have to come out with more downpayment.. simple. The bank is not going to take risk loaning money to an overpriced property.

Nowaday most of the valuer is either sleeping or living in cave....i am facing the same issue with house market value at 600k, valuer only value at 480k, especially when the place have less transaction, they will just estimated from last transaction and add up minimum increase, last transaction could be last year, a year different is huge!

so far only come across valuer report lower than market price... start from -rm20k...

how do you know house market value is 600k? please share.
because all the asking price is ~600k in the area? doesn't reflect market value now does it? reflects asking price.

This post has been edited by Jason: Jan 19 2011, 04:35 PM

for landed housing, usually renovation will be valued at half the renovation value...

For example 200k, valuer max want to give you 100k-150k only. They tend to be conservative in giving value to renovated properties.

i am from OCBC.

Actually a valuer is an independent entity en-paneled to various banks in Malaysia. meaning to say, the valuer is can be a representative of OCBC & PBB, HLBB,UOB, HSBC etc etc at the same time.

The valuation of the property is always based on the recent record in their database, if there is no supporting info, they could not easily say the property is valued at the selling price.

The reason is if the borrower defaulted the loan(means did not pay the loan and caused the loan account to turn into a bad debt), the valuer is responsible if they give a high valuation. that is why it is always best to ask the people, who has recently bought their property at your buying area, which bank they applied for the loan.



This post has been edited by kok_pun: Jan 19 2011, 05:05 PM

when surrounding similar property transaction at 540k, your property with extra land and renovation, do you sell at 480k?

How to know people who bought the property at my buying area?

depends, if surrounding similar property transaction at 540k, it could be because that property was renovated, comes fully furnished, is a corner unit, well maintained etc. 480k could be for intermediate, very run down unit, leaking sewage, cracks on the wall, roof already eaten away by termites and somebody suicide in there.. i would be very glad if i can sell it for 480k and run off with the money.

if you are basing valuation on last transaction, then what is YOUR VALUER doing wrong. you said he is basing it off last transaction price of similar units. just because you are willing to pay more doesn't reflect its value.

but we both would agree that value is subjective. i have no information, but indeed your valuer could be lazy. find a few other valuers. if all of them come to same conclusion then you are over-paying for it.

actually to overcome is to save more cash to top thing up

i'm the seller la, 600k is my offer price, i just pity my buyer could not get 90% loan, nothing i can do, price is fixed!

it is almost a norm these days with the asking price way higher than valuation. which explains subsales going slower.

examples from my recent viewing.

asking RM480k, valuation RM400k
asking RM350k, valuation RM280k
asking RM260k, valuation RM210k

as sellers we always ask for more, its normal but what we ask for may or may not reflect the true value.

as the seller, then you are doing great

value is depending on the market. if the sellers are all asking for high price and still selling like hot cakes, valuation will catch up.

i think this is normal nowadays.
i also facing this issue. bought at 345k valuation 320k.