Finalae

Good day everyone
This will be my last posting and sad to say that in times of recession Buyers and seller are hiding away from the market and my Exclusive seems to be held up currently. The above photographs

is the flat I am handling now.

I shall give everyone a scenario so that you could have better understanding and benefits from my information:

A Chinese married couple owns 3 room flat which was bought directly from HDB and was fully paid by CPF at 100 thousand dollars. The house was value at 300 thousand now and the owner asking price was 20k.

Resale price:$ 320 , 000 (300,000+20,000)

CPF refund with accrued interest:110,000 (10,000+10%(assumptions))

Total conveyancing and legal fee : $500

Agent commission for selling : $6400(2% * 320 000)

Net sales proceeds for selling the house = 320 000 – (110 000 + 500 + 6400)
= $203 100

*** $203 100 is the profit returns by selling the house only


They wanted to buy a 4 room resale flat at valuation 350 thousands with 20 thousand asking price. HDB entitle them for 2nd loan as they are upgrading from 3 to 4 room. Both husband and wife average age is 30 year old


Purchase price: $370 000(350 000 + 20 000)

Outstanding Amount: $166,900 ($370 000 – $203 100)

HDB Loan : $150,210 (166,900*90%)

Monthly Installment: 420($150 , 210 / 35 years)

*** Maximum HDB loan years is 65 base on the average age of the house owner thus 65 – 30 =35 years

***$420 is the monthly installment which can be pay by cash or from CPF ordinary account.


Steps involved in selling

1.Ethic Integration

We can either call or check online for the racial balance within the flat so that we know what races cannot buy the house.

2.Valuation

Have to submit request to HDB to get the house value and takes 2 weeks to be ready.

3.Marketing

Market the flat on various medias like newspaper and property website to find the suitable buyer

4.Loan eligibility

Check the types of loan they are eligible such as bank or HDB.

5.Closing the sales

Interested buyer pays $1000 to seller to buy themselves a duration of 2 weeks and considered properly. It is like a reservation as seller cannot sell to other buyers.

6.Exercise Option

The buyer decided to buy the house and exercise the option by paying an
amount not exceeding $4000

7.Registration

All contracts and application will be sudmitted to HDB or processing and
waiting for the 1st appointment at HDB which takes 6 weeks.

8.Flat inspection

HDB will sent people to do inspection on any illegal alteration to the house.

9.1st appointment

It will take 6 weeks from date of registration and the officer in HDN will redo
financial calculation with them.

10.Letter of approval

Buyer and seller will receive a letter if approval of the house application

11.Final Inspection

The seller must let the buyer do an inspection 1 or 2 days before the
completion.

12.Completion

Completion takes 8 weeks from 1st appointment. The buyer will get their keys
to the house and Seller will get their sales proceeds on this day. This day will be the day that agents are being pay!


Hope you enjoyed and learn from my Blog. If you have any queries , feel free to leave a comment and I would return your message as soon as possible.

Take care Everyone.

My Exclusive

Good noon guys , I am back for more insight on my exclusive client. According to my client finacial status, we decided to do "Contra" as the flat they are selling had been fully paid.

Doing contra is the process of submitting the buying and selling contract at the same time to HDB. As the sales proceeds of the selling house takes one week to credited back to the CPF, to be ready for deduction on the bought flat. If the CPF is not ready, the whole transaction will be void by HDB and may cause agent into lawsuits as the transaction is not handle properly.

We had post advertisements of the house on various media such as internet and newpapers awaiting for potential buyers.

In the case that buyer is serious in buying, we would carry out O.T.P . Option to purchase is a contract that bonds the buyer and seller for 2 weeks. During this period of time, the buyer must deposit a maximum a thousand dollars. These contract gave the buyer the rights to withdraw or proceed. If withdraw , the deposits will be forfeited.

In the case that they want to proceed, we could reach the 2nd stage which is known as "Excercise Option". To excercise option, the buyer had to deposit up to maximum of four thousand dollars. In short , for the O.T.P to be carry out, a maximum amount of Five thousand Dollars is transacted for this contract.

I am now awaiting for this potential buyer and when it reached the stage of excercise option.
The case should be considered almost close and its the only matter of time that the HDB approve this transaction.

Keep you guys posted again next week!

Jack in Real Estate

FDM N704(Terminal 3)

Having a good day everyone?
I hope you all do.

I shall introduce myself, My name is Jack , 24 years old , full time student of Temasek Polytechnic year 2.2 and my faculty is Diploma in Facilities Design and Management. I would consider myself lacking behind time as I compare myself to my circle of friends as they were already making "Money" and building their career while I would only be a diploma graduate when I turn 26. I knew I had to do something to solve this problem of mine! I need something which had time flexibility and high profit makings. The industry that fulfills my criteria is "Real Estate".

I consulted my friends whom are in the industry and I decided to join DennisWee Group. I was recommended by Daniel and he was an Associate Director. He convinces me that they provide very professional training to educate me on Real Estate and he would personally trains and guides me along the way.

After graduated from my 1 month course during my school holidays, I was eager and looking forward for my 1st deal. I have to create opportunities thus I do cold-calls, distributing name cards, post advertisement online and papers.

On 28 September 2008, I receive a call and it was my friend who is selling his HDB flat at Sengkang and I immediately arrange for an appointment that evening. Me and Daniel went to the house to understand his financial status and did a presentation to educate him the advantages of engaging an agent. He trusted our sincere services and sign an sole exclusive with us.

***Exclusive is a contract between the seller and the agent. It give the agent the sole rights to market the house. The advantages of engaging an agent saves you the hassles of answering so many phone calls from agents and direct buyers. Your Agent will also protect your reserve price in selling the flat and handles all procedural forms of work smoothly.

to be continue...