advice needed on selling house: risk on eaely reno?

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advice needed on selling house: risk on eaely reno?

Postby jkids » Tue Apr 08, 2014 10:56 pm

hi, need some advice from those who have sold or are selling their previous house.

My buyer would like to start their renovation after approval is given by HDB subsequent to the first appointment. The normal process flow is to renovate only after the second appointment. But HDB does allow for an earlier renovation if both seller and buyer agree.

We feel that this is a risk as the buyer can still back out after the first appointment (despite having paid the option fee, option exercise fee and various admin fees). He may leave my house in a mess and go MIA.

Will you take the risk of allowing the buyer an early renovation or follow the standard procedure of allowing renovation after the 2nd appointment?

jkids
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Re: advice needed on selling house: risk on eaely reno?

Postby pirate » Tue Apr 08, 2014 11:22 pm

jkids wrote:hi, need some advice from those who have sold or are selling their previous house.

My buyer would like to start their renovation after approval is given by HDB subsequent to the first appointment. The normal process flow is to renovate only after the second appointment. But HDB does allow for an earlier renovation if both seller and buyer agree.

We feel that this is a risk as the buyer can still back out after the first appointment (despite having paid the option fee, option exercise fee and various admin fees). He may leave my house in a mess and go MIA.

Will you take the risk of allowing the buyer an early renovation or follow the standard procedure of allowing renovation after the 2nd appointment?

You just answered your own question there.

pirate
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Re: advice needed on selling house: risk on eaely reno?

Postby pirated » Wed Apr 09, 2014 12:53 pm

can you request HDB for earlier completion of the S&P ? if can, ask from buyer a premium for vacating earlier to compensate for cost you may incur to put up some where ....

obviously the buyer needs to move in early in order to avoid penalty elsewhere ....

every possibility has a price :)

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Re: advice needed on selling house: risk on eaely reno?

Postby tutormum » Wed Apr 09, 2014 2:44 pm

Every decision involves risks. It actually depends on your luck. I would advise to allow it after the 2nd appointment if you want to be sure.
I have requested for early renovation from seller and allowed early takeover from buyer. Of course I look at the circumstances and calculated the risks.
When I signed the option for my present flat, I understood from my agent that I won't get to buy if the earlier potential buyer did not backed out just 4 days before the 2nd appointment. Heard that she was cheated of her money by her bf and didn't have the funds. The sellers had committed to buy another flat and were so desperate as they were incurring interest on their bridging loans that they agreed to an early completion.
Meanwhile, I was desperate as DH sold our apartment without getting the agent to include a clause that would allow us to rent from our buyers when we hunt for a new place. That idiot agent refused to help when I asked him cos my idiot DH gave him exclusive agreement to sell and let him handle everything. That idiot agent even had the cheek to ask for early completion for the buyer even though he knew that we would only look for a new place after confirming the sale of our apartment. :mad: :mad:
Thank God, I managed to move to my new place just 3 days before I had to hand over the keys to the apartment. :nailbite:

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Re: advice needed on selling house: risk on eaely reno?

Postby Sun_2010 » Wed Apr 09, 2014 3:14 pm

jkids, Heard of stories before , so I would advise caution. We never know what will happen tomorrow, so best to be on the safe side.

There was a case where the seller agreed to let the buyer move in after the 1st appointment . The buyer's moved in with family. Unfortunately the buyer's wife committed suicide before the 2nd appointment. Now buyer was too depressed and wanted to back out. The seller had difficulty finding other buyers, neither could he bear to move back there.

Chances are nothing so drastic is likely to happen. If in the rare chance it happens, can you take it?

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Re: advice needed on selling house: risk on eaely reno?

Postby bb_ mom » Wed Apr 09, 2014 3:22 pm

Sun_2010 wrote:jkids, Heard of stories before , so I would advise caution. We never know what will happen tomorrow, so best to be on the safe side.

There was a case where the seller agreed to let the buyer move in after the 1st appointment . The buyer's moved in with family. Unfortunately the buyer's wife committed suicide before the 2nd appointment. Now buyer was too depressed and wanted to back out. The seller had difficulty finding other buyers, neither could he bear to move back there.

Chances are nothing so drastic is likely to happen. If in the rare chance it happens, can you take it?

You mean she committed suicide in the house that they were buying?

I'm also against the idea. No way would I let renovations start when the property is still in my name. What if buyer changed his mind? I need to fork out money to re-renovate. And that means loss of money & time.

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Re: advice needed on selling house: risk on eaely reno?

Postby jkids » Wed Apr 09, 2014 4:42 pm

thanks folks. every advice helps. :)

oh idea so extreme and drama but its so real life, thanks for sharing. the more i am firm.

anyway, the deal may be off coz they want early reno but we dun want. buyer has paid the option fee. i am angry with my agent for not telling us d risk, i noe they want to let go our unit quckily so do us, but by not being forcoming does not relfect well of their professionalism.

its juz that i duno when will be the next offer again. my unit is inthe mkt for 6 mths already. with more bto...i am getting worried of the price. but still i understand its too risky in this case to let them do earlt reno.

jkids
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Re: advice needed on selling house: risk on eaely reno?

Postby jkids » Wed Apr 09, 2014 9:50 pm

about the clause, how is it written in the contract? so any clause is possible so long agent and me agree?

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Re: advice needed on selling house: risk on eaely reno?

Postby limlim » Fri Apr 11, 2014 12:06 pm

After option form, the buyer have 2 weeks to consider the purchase, and the seller is not in a position to back out unless the buyer agrees.

Once the option is exercised after 2 weeks, both side is liable to complete the transaction right?

So, if the buyer back out, you can find another buyer, sell him at half the original price, and get the previous buyer to cover the difference.

So, in this case, the seller is not really at the mercy of the seller. The buyer who backed out is liable to compensate the seller if he suffers any lost due to the buyer's failure to fulfill his obligations under the purchase agreement.

This is standard arrangement right?

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Re: advice needed on selling house: risk on eaely reno?

Postby limlim » Fri Apr 11, 2014 12:10 pm

Say, buyer reno half way then back out.

In that state, of coz it cannot fetch a good price. But, say, you reduce the price to $100k compare to previous transacted price of $500k. Then, you sue the previous buyer for $400k. Then settle liao lor..

But of coz, you muz ensure the buyer is capable of paying lah.

If the buyer is rich, guess, early reno is not an issue. Any problem just sue them.. :evil:

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