How I closed a DBSS unit at $53K Cash Over Valuation (COV)

DBSS Centrale 8.

One of the newest project to hit the 5-year Minimum Occupation Period in 2019.

With close proximity (5 mins walk) to Tampines MRT (Downtown Line) – this is a highly-sought after location.

However, upon reaching 5 years MOP – this also means more sellers want to sell their unit as well!

Due to many circumstances such as upgrading, downsizing, change of location due to children’s schools and many other reasons… buyers therefore has more choices to choose from!

With a stiff competition from other listings, how did I managed to secure a record price of $888,888 on this challenging market?

How We Met

The sellers called me when they saw my past records with PropNex during their research for a realtor. Since I was a champion HDB transactor for 2018, they wanted to make sure they get a right realtor who can meet their expectations.

They interviewed me and also other agents from other companies as well. This couple is a serious seller who is keen to sell their 5-room DBSS unit due to change of work location and wanted to ease their commute.

After engaging me as their exclusive agent, we marketed their property aggressively.

We got a couple of offers from potential buyers but they were below the seller’s expectations. However, with an asking of over $900K, many buyers compared it to buying a condominium due to a high quantum figure that is close to $1-million.

One offer finally came in @ $850K.

The buyer gave this offer as there is a caveat of $830K at a neighbouring block and also it’s of the same height (13th to 15th floor).

Negotiating the Price

We counter-offered at $890K to the buyer.

Finally, we concluded the deal at $888,888 as it’s a significant number too – so as to coincide with Centrale 8!

This episode wasn’t over as the buyer has to submit for a valuation request and we need to clear that final hurdle.

A week later, the valuation came out to be only $835K.

That means a staggering $53,888 Cash Over Valuation!

Paying a $53K COV?

Buyer was a little hesitant as there were many other competing units around too.

However, I did managed to convince the buyer why the COV is worth the value:

  • Our stack has the best view, morning sun and quietest amongst the rest of the 5-room in this project.
  • The buyer heeded my advice and went to do their own market survey.
  • After seeing the rest of the units, the buyer decided to proceed with the unit as they were convinced that our unit is the best stack.
  • They proceeded with a peace of mind.

The Power of Prior Research & Negotiation

There were 178 5-room units at Centrale 8.

This goes to show the importance of getting a realtor who does his homework.

More importantly, an agent who will do their best to secure a great deal for their sellers.

I am not saying that I will always be the best agent for the job – but I will certainly put my heart and soul into each transaction.

What was crucial here was advising my sellers that the right price point is absolutely a key factor in determining whether the deal will go through.

Otherwise, this unit might still be in the market in this current softening sentiment.

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