House Viewing

At 1015, my handphone alarm rang as I had an appointment for house viewing at 1200~! Turned it off but still felt sleepy so just laid in bed to rest for a while more. Suddenly my handphone rang again. This time it was a phonecall from the property agent Esther. She asked me where was I. OH MY GOD~! It was 1156 and I thought she was already there waiting for me. I told her I'll be a bit late (anyway the block is just behind my parents-in-law's condominium). Luckily she told me that she'll be late too and will only reach at 1230. =p I hurried up to wash up and wake my wife up.

Met Esther at 1230. She looked like a small kid because of her height. The unit was just next to the lift and before we stepped into the house, we could already see from the outside that the house is nicely renovated. Inside, the house was really in a move-in condition which we like alot.

Valuation of this unit is S$238,000, which is quite reasonable if you compare with other 3 rooms flat with little or no renovation. We are very keen to get this unit because it is very convenient for us. After we left the house, I asked the property agent how much COV (cash over valuation) the owner was asking. Esther told me someone had offered S$10,000. That would mean this unit costs S$248,000. What the hell? A HDB 3-room flat costs about the same as a 4-room flat!

After this unit I had another appointment at 1630. This will be a 4-room flat (106 square meters) which is much bigger than the 3-room flat (73 square meters). Valuation of this 4-room flat is only S$260,000 but definitely need to do some light renovation. However, the only thing I like about this unit is that it is big enough and has more space. At night I had discussed with my parents-in-law for some opinion. They also agree that the 3-room flat is more convenient and better for us. Anyway I also doubted what the property agent had told me about someone offering S$10,000 for that unit.

Today I just tried my luck to called this agent Esther.

Me: You told me someone had offered S$10,000 for that unit right? Does that mean that I need to offer higher amount if I wish to buy this flat?

Esther: Yes!

Me: If that's the case, then never mind. Thanks!

So I just hanged up the phone. A while later, Esther called back and asked how much I was able to offer. I replied that I can only offer a few thousands. Since their unit valuation is already higher as compared to other 3-room flats, why should I have to fork out so much cash for the unit? Esther told me that the owner was actually looking for S$300,000 as asking price as they had spent alot of money for the renovation! But if the person offered S$10,000 she'll consider too. What the hell? Now the 3-room flat's valuation is averaging at S$220,000. This unit has a higher valuation means that the renovation works have been taken into consideration during valuation. Which means their renovation costs about S$18,000. Furthermore, this house was renovated 7 years ago and do you still expect the renovation to be still 'worth' S$18,000?

My wife and I talked to her mum about all these so she said she wanted to take a look at the flat too and she'll try to negotiate for us. Anyway she has more experience and much better at negotiating, so I just give her the property agent's contact number and let her arrange with the agent to view the house. We really do like the house but I just think it's a bit unreasonable to fork out so much cash especially with the economy being quite bad at the moment.

I think I need to pray hard. Hopefully I can get this house. Gold Bless Us...