Mortgagee Sales Price vs. Estimate Market Value
From the data that we have gathered, auction and private treaty, 15 out of 25 (i.e. 60%) mortgagee sales were priced higher than the estimated market value. If we were to remove HDB for comparison, 50% of the mortgagee sales were priced more than the estimated market value.
Based on a comparison of mortgagee sales guide price and estimated market value of the property, it goes to show that mortgagee sales are not always a good deal. There are equal chances that you may be paying more for a mortgagee sale. Plus, for auction, bidding may push up the prices of the property. On a side note, keep calm when in a bidding war, do not let your emotion clouds your decision.
Mortgagee Sales Price vs. Previous Owners’ Purchase Price
A mortgagee sales is very likely to be discounted from the previous owners’ purchase price.
For the 15 mortgagee sales listings (with the necessary data for analysis), 12 out of 15 mortgagee sales (80%) are discounted from the previous owners’ purchase price. Moreover, 9 out of the 12 mortgagee sales listings are marketed at more than 10% discount from their purchase price.
Not forgetting the newsworthy Marina Collection which was sold at 42.8% discount, a loss of SGD 2.24 million. Surprisingly, this is not a one-off event, another unit of the similar size was also hammered from SGD 4,869,800 to SGD 3,000,000.
So, do you think that the new buyers have gotten themselves a good deal at Marina Collection? Leave us your comments below; we would love to hear from you.
In our opinion, based on statistics, the new buyers have gotten themselves a fair value deal. On the other hand, the new buyers may have gotten themselves a good deal as the rest of the sellers at Marina Collection may not be willing to let go at this low price.