Why can’t HDB scrap the practice of paying Cash-Over-Valuation?
HDB has been asked many times to scrap the Cash-Over-Valuation (COV) as a means of reducing resale prices. However, the COV is not something mandated by HDB. It comes about from the dynamics of the market, from negotiations between individual buyers and sellers.
Resale flat buyers are advised not to negotiate solely on the basis of COV when dealing with sellers, but to consider the total flat price. They should also do the necessary homework, such as studying past transacted prices in a particular neighbourhood, to establish what a reasonable price is before agreeing to a purchase.
Find out more about COV from the infographic below.
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