Useful Information on Buying Property, Consult a RAY Consultant Here

Somewhere & sometime in life, most people will buy a home. Be it for the purpose of starting up a new family, upgrading, downgrading, relocation, investment or other personal reasons, buying a home can be one of life's most exciting experiences. But it can also be one's nightmare as things can turn out ugly.

In order to prevent any chaotic buying process situation, it is best to prepare yourself beforehand. Prepare yourself with information like current transacted prices, general asking prices, bank valuation and be fair to pay more for renovated homes or properties in better condition.

Offer The Right Price:

Setting the buying price of your home involves careful considerations including market conditions and financial factors. During this phase of the home buying process, your appointed Realtor will assist you in getting the best purchase price by determining the followings:

• Renting Price Considerations
• Comparative Analysis Pricing (Latest Transactional Data)
• Market Conditions & Sentiments

Buying Price Considerations:

When offering the purchasing price for a potential home, the buyer should be aware of a seller's frame of mind. Depending on the property market sentiment, an asking price must be realistic and according to the market rate. Based on the wide choices of property for sale in the market or in the neighbourhood, it is important to take note that every property is different in terms of view, height, facing, orientations, renovation, etc. Sellers tend to ask for a higher price but it must always be in accordance to instances like the property’s condition. Demand and Supply situation of a certain type of condominium or property in the market must also be considered. The specific location where the property is concerned should also be taken into consideration.

If a property is rare, good condition and short in supply, the buyer must be prepared to offer a higher purchasing price. There is always a premium price for a property which is much nicer and better condition than the others in the same estate or condominium. However a higher price considered must be within a certain limit depending on the situation.

If the buyer does offer too low of a purchasing price, then the buyer is likely not going to be able to purchase the property.

Please do not offer too low of a price if the property is worth a lot more as the buyer may end up losing the property to another potential buyer who has offered a higher but reasonable price. In the end, the property will be sold to the other buyer.

How to determine the right price?

In order to determine the right price, do the following checklist:

• Consult with your appointed Realtor
• Check other advertisements selling in the area.
• Check latest transacted selling prices.
• Check the bank valuation, get a bank indication.
• Always go with the market condition and sentiment flow.

Comparative Analysis Pricing:

It is good to compare prices but subject to the specific guidelines. A transaction data can be obtained through the URA website for a guide. However do take into consideration that what has been transacted could be based on various factors.

The list of comparable transacted sales together with what's selling in the present market will give you a "Comparative Market Analysis". In this way, it will assist you in estimating a possible sale price for that particular home. Because the property market changes every few months, always check the last 3 months' data.

This transactional data is available to the public indicating what the purchasing public are willing to pay and this information is available through various sources:

• Your appointed Realtor
• Your Banker
• www.ura.gov.sg/real_estate/real_estate_main.phpl

From here, you and your appointed Realtor should be able to come to a suggested purchasing price. However, the final offer purchasing price will always be your decision.

Please take note that there is no need to get a written valuation report for Private Residential Properties. Any 2-3 bank value indication is good enough. After all, when you find a potential property, they will again ask for their own bank valuation to make sure that your value indication is within your bank's indication.

Market Conditions:

The Market Condition is always a factor in determining the activities of sellers. When the property market is booming, prices tend to rise very fast and properties are being sold in just a matter of days. However, when the property market is quiet or slow down, the longer the time you have in deciding to purchase a particular property. But if it is a good property, then it is advisable in deciding fast.

When you have decided on a particular property, consider reasonably when making an offer to purchase.

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