THE SITUATION BACK THEN
Here is a case that I have learnt from…
I was handling this client case exactly 1 year ago where they hope to sell their resale HDB and upgrade to a condo. They bought it 360k, x-value estimated it to be about 450k but they insist they wanted 500k.
I managed to get an offer of 435k which after negotiation, it became 442k with a 2 mths extension. They decided to reject even though:
– I mentioned that because of the lease remaining, the value of the flat will continue to drop further quarter to quarter.
– A higher floor unit closer to MRT is sold at 450k.
– It made sense to move on because enbloc fever is pushing condo prices up and especially when there is a unit they like at high floor 1.29mil – even if you sell ur HDB 5% higher, you are likely to buy at 5% higher for a higher quantum item.
Eventually, after 2 mths of exclusive, they decided to drop me. Fast forward after 9 mths, they sold their place at 410k and 1.35mil is the price to pay for a mid-floor unit at the condo they love, while cash proceed are negligible with an additional accrued interest factored in.
SO WHAT’S THE LESSON HERE?
– I failed to remember that this is their matrimony home – a place where they have their kids, a place where they imagined how a marriage life will be, a place where they picked and choose the colour of their paint, furniture and design. I failed to address their emotional needs.
– Of course emotional and sentiments aside, we need to look a the bigger objective why are we even looking at selling our home. Alot of the responses I got – “I believe my house can sell higher”; “8 years ago, my neighbours sold at THAT price”; “I am not in a rush to sell.” The fact is, we need to understand that TIME is the key factor here and it could really be costly.
In any case, before making any decisions on your property(ies), it is important to plan your finance properly and perhaps being mindful to cast away the emotions to make a careful, analytical and calculated decisions