What is COV in HDB?
Cash over valuation, or COV in short, is the difference between the sale price of a resale HDB flat and its actual valuation by HDB. Most often, the term is used when a buyer overpays for the unit. An example of its calculation: Agreed sale price of flat between seller and buyer.
Is it worth it to pay COV?
For some resale flats, the COV is worth paying for because of the great location and unparalleled access to amenities. But if you are just paying to get your home faster, then you need to ask yourself whether it is worth paying for. How much COV should you pay? The typical range for COV is between $10,000 and $50,000.
Is COV paid to HDB?
If you are purchasing using HDB mortgage or making full CPF/Cash Purchase, COV is payable in the form of Cashier Order prior to completion day.
How do I find my HDB COV?
How to Estimate COV When Negotiating The Price. COV refers to the amount the buyer ‘overpays’ for an HDB resale flat. From the agreed sale price of the property, the actual valuation of the resale flat by HDB is subtracted. The difference is the COV value to be paid in cash.
What is COV property?
Cash-Over-Valuation (COV) is the amount that the buyer has to pay in cash when the price of the property is higher than the market valuation of the flat. This applies for all private properties and HDB resale flats.
Can COV be negotiated?
A Yes. With the new revised resale procedures, negotiation is no longer based on COV but on the total price of the resale flat, as should be the case. This, however, does not mean the removal of the cash component entirely as the price is negotiated between a willing-buyer and willing-seller.
How does COV affect seller?
Most sellers take reference from the recently transacted prices in order to price their flat for sale. If these prices include a COV component, the seller may experience some shock when a potential buyer suddenly pulls out from the transaction because the valuation is lower than expected.
What is COV resale?
Resale home prices have been selling at record high prices, and you might love or hate the valuation process. That, of course, depends entirely on whether you’re the buyer or the seller. However, with people being agreeable to spending more on resale homes, cash over valuation (COV) is a definite concern.
Is COV compulsory?
COV happens when a resale flat is sold above its actual HDB valuation, and the difference can only be paid for in cash by the buyer. If buyers and sellers have agreed on a resale price that is equal to the market valuation of the flat, buyers do not have to pay a COV.
Is COV on top of downpayment?
You’ll have to pay the S$50,000 COV in cash — and that’s on top of your downpayment. Otherwise, you can also back out of the deal and resume your HDB hunt. But you’ll forfeit the S$1,000 option fee. To save yourself the heartache, here are 3 ways to gauge the COV of a resale HDB flat BEFORE you pay the option fee.
What is COV for private property?