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).
The valuations are carried out by HDB’s panel of valuers who are professionally qualified and licensed by the Inland Revenue Authority of Singapore (IRAS).
Listed below are the procedures on how a valuation process is carried out:
|1||On receiving the completed request form with the payment, HDB will assign a valuer randomly from its panel to assess the flat’s value.|
|2||The valuer will arrange with the flat owner to view the flat for assessing the value of the flat|
|3||The valuation report is usually ready within 2 weeks after the valuer’s visit and will be sent to the requestor by post|
|4||The valuation report is valid for a period of 3 months from the date of the report|
Valuation Cost (for HDB only)
HDB owners are not required to pay for valuation(s).
Valuation often takes takes about 10 – 14 days upon request made.
Each valuation is valid for 3 months from the date of valuation.
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