Get proper valuation of properties to avoid short-changing yourself

Instead of paying just $120 to get a proper valuation of his HDB flat, a man embroiled in divorce proceedings took the free option by relying on past transactions of similar units to price his home.

- Tan Ooi Boon

He argued that the flat was worth $480,000 but his wife, who also looked at past transactions, came up with a figure of $560,000 – a valuation eventually accepted by the Family Court.

The husband had been the main breadwinner, earning about $15,000 a month, while the wife had been earning $1,800 monthly as a customer service officer before she became a housewife to look after their child.

As a result of the higher valuation of $560,000, the share of the couple's matrimonial would have increased by $80,000, against the lower valuation of $480,000.

When the court awarded the wife about 20 per cent share of their assets, the husband had to pay her about $15,000 more for her share of the flat. This extra sum was more than 100 times the cost of the valuation report.

So you should never be penny wise and pound foolish when dealing with property because your guessing game may lead you to price it wrongly.