Updated: May 29, 2020
Hey! I found a Good Deal!!!
Is this what you have been looking for?
During this period of pandemic, I believe that more and more buyers with reserves are looking out for these deals.
The moment that they have been waiting for is here.
Are you one of them?
Before you commit to one of the “Bank Sales’, “ Mortgagee’s Sales” , “ Fire Sales” or “Undervalued properties” , let us understand what is a Bank’s Sales, Fire Sales or Undervalued Properties.
What is a Bank Sales or known as Mortgagee’s Sales?
A Mortgagee’s sale is defined when one's property is placed on sale because they were not able to pay back the money they owed to a lender and in this case, the BANK, and the lender is selling the property to get back the money they are owed. Often Mortgagee sales are conducted through an auction.
We need to understand that for Bank’s Sales or known as Mortgagee’s sales are usually placed on auction by the banks, however, apart from auction, the banks may sell them via private treaty too.
The misconception that most people have is that these properties will sell way below market value, however for some of the mortgagee’s sales, it is sold based on current market’s price and probably just a little lower. As the bank needs to cut their losses too, they have a reserve price for every bank sales or mortgagee’s sale put forth in the market.
What is a Fire Sales?
Fire sales are defined when goods or assets are being sold at a very low price.
However, in today’s real estate market, many have abused this phrase and a lot are advertising their properties for sales as fire sales, therefore as a buyer, you need to do a careful study of the so called fire sales that you are interested in.
What is an Undervalued Property?
Undervalued property is defined as real estate properties that are being sold for less than what they are worth in the respective market.
What should we do when we see a good deal like bank sales, fire sales or undervalued properties?
Know that if you can find a good deal, others may find this deal too.
First be financially prepared, also make sure that you are eligible for loans when the time comes. Good deals wait for no man. Make sure that you have done all the eligibility checks, all the financial checks & affordability checks.
Be sure to check the current market trends as well as the market analysis for the units you deem to be a good deal too. What is the property value in the “good deal” you’ve found like the rental yield, etc
Consult a salesperson to get the analysis done for you. Many real estate salespersons are equipped with the right tools to give you proper advice to help you before you make an informed decision.
So How do we Proceed from here?
Usually you can search and find the Bank Sales/ Mortgagee’s Sales/Fire sales on the different platforms in Singapore Like Property Guru, SRX or 99.co
Once you find the listings, as per normal units that are available in the market, you can contact the marketing person to arrange for viewings or to get more information regarding the property.
If you really like the property, you can make an offer to purchase the unit.
The banks or the owners of these properties will then choose to make a counter offer or to accept your Offer to Purchase.
Once the price has been agreed upon, the usual Option to Purchase will be issued.
If you are interested to know what are the mortgagee’s sales currently in the market,
You can TAP https://bit.ly/singjiabanksales to subscribe to our Bank's list that will be updated on every 1st week of the month. The List will be emailed to you or Whatsapp to you monthly.
To know or find out more about Bank Sales , do contact anyone of us from Singjia and we will be glad to assist you.