We would like to share with you some of the interesting facts about property valuation (private residential, commercial & industrial; excluding HDB flat).
1. Desktop Valuation – A range of price
Desktop valuation or indicative valuation is always free. Normally, with the exact address, built-in size, land size (for landed), rental rate, we will provide you the answer within 24 hours. Our consultant will engage our bank representative to get a range of valuation. Each of the banks has tied up with a few licensed valuation companies at the same time.
A valuation is always a combination of recent transaction records and subjective perspective of the valuers. Some valuers tend to be more aggressive and provide a “stretch” value; while some of them are more conservative, and the indicative valuation could be lower than the latest transaction price.
We always provide our clients, regardless seller or buyer, not just one valuation, but with a range of valuation, with minimum and maximum value. With a range of valuation, our client will have a feel about the market price of the property. Feel free to reach us!
2. Onsite Valuation –
Onsite valuation or formal valuation, it will require the valuer to visit the actual property to conduct onsite measure and inspection. This is a paid-service. The valuation fee for condominium and apartment is at the range of $500 to $1000 and valuation fee for bigger property, or above $10mil, the amount will be varied, it could be $4,000 – $5,000. Some branded valuation companies charge $8,000 – $10,000.
As the Singapore property market is quite dynamic, the valuation report is only valid for 3 – 6 months time.
3. Seller’s request for valuation
In most cases, sellers will not request for a valuation report, it is not compulsory to have a valuation report. The DIY method is simply browsing those property listing sites and trying to find out the asking price of their neighborhood property.
Please note that, “Asking price” is NOT valuation. The property agent who posts the ad, most likely will inflate the price according to their seller request.
When the property market is bullish, the “Asking price” potentially becomes a historic price if the deal goes through.
4. Buyer’s request for valuation.
We serve a lot of buyers for their valuation enquiry. The buyer or the buyer’s agent will provide us the property info and the asking price.
It is quite common that, bank’s valuer is unable to match the asking price. This means the asking price is too high. It is not easy to request valuer to continue to stretch the value of the property. The valuer has to follow certain code of conduct.
The buyer will take their own risk for not being able to get enough loan if they want to buy the property at the asking price.
5. Can valuation jobs be replaced by AI?
There are some online instant valuation websites. In our view, this type of valuation service, probably could give you some reference price of the subject property, but it is not applicable in actual transactions. In the real life scenario, the bank requires onsite valuation, thorough study and provides a full valuation report. Till date, this job is considered manual and requires some good level of experience and know how to ask right question.
Looking for valuation? No problem, click here for the valuation request form. We will revert within 24 hours (during the working day) with a free desktop valuation.
