CEA reminds agents not to refer to a flat’s valuation
Real estate agents have been reminded by the Council for Estate Agencies (CEA) to refrain from mentioning a HDB flat’s actual valuation in their advertising materials; instead they should only state the seller’s asking price.
According to a media report, the CEA via a circular dated 23 April: “As a salesperson would not know the valuation of an HDB flat when he is marketing it for the seller, he is not allowed to use phrases such as ‘$0 COV’, ‘$0 Cash’, ‘Low COV’, ‘Low Cash’, ‘Below Valuation’, and any other phrases with similar effect in advertisements.”
While agents have changed the way they market resale flats, many sellers and buyers are still unaware of the new policy.
As of 10 March, valuation requests for a flat will only be issued after the seller and buyer agreed on a price.
Previously, agents can refer to the seller’s asking price and the property’s valuation prior to advising sellers on a reasonable offer. Michael Tan, OrangeTee’s Key Executive Officer said with the new rule, agents can only refer to the seller’s asking price, causing them to advise buyers to propose lower offers.
Agents can use HDB’s InfoWeb website to check recent sale prices of neighbouring flats, said Chris Koh, Director of Chris International.
However, due to unique circumstances, some flats may have lower or higher market value.
It is even harder for flats in small housing estates, where there are limited transactions, noted Tan. Nonetheless, some property agencies can offer indicative valuations through their valuation departments.
Source copied from: http://www.propertyguru.com.sg/property-management-news/2014/5/37787/cea-reminds-agents-not-to-refer-to-a-flat-s-valuat