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"I am a BLOGGER NOT an expert. This is a BLOG not a 'go-to' website for official information. I represent no one's view save my own. I have neither legal nor financial training, nor do I have anything to do with the real estate industry. My understanding of the Collective Sale Process is from a layman's position only. My calculations, computations and tables are homespun and may contain errors. Please note that nothing in this blog constitutes any legal or financial advice to anyone reading it. You should refer to your lawyer, CSC or financial adviser for expert advice before making any decision. This disclaimer is applicable to every post and comment on the blog. Read at your own risk."
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There is one thing worse than an Enbloc ----- and that is an Enbloc done badly. Since the majority have the necessary mandate to sell, then they owe it to all SPs to make a success of it. Minority SPs can only watch and wait, if they sell then lets pray it's at a price we can move on with, if they don't sell, then we are happy to stay for a few more years.

Cut out the middle-man

Here’s a WILD IDEA.

A lawyer in an en bloc sale is essential.
Property agents, on the other hand, are dispensable.

Let’s take a leaf out of the HDB book. They now run classes for those owners who wish to cut out the middle-man and buy/sell their unit on the open market by themselves; thus reducing their costs.

The govt could run similar classes for private owners who wish to sell their estates en bloc.
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1) Holding EOGMs is a breeze. The managing agent in the estate will take care of all the necessary preparations. Anyone can read up the rules and regulations and follow instructions.
2) Owners can appoint their own Valuer to do a valuation. At least you can be SURE that the valuation is genuine and independent.
3) Owners will not be enticed, seduced, duped, cajoled, intimidated, harassed and/or sweet-talked into signing the CSA.
4) Signing the CSA can be done en mass only after 80/90% have indicated their intention to sell.
5) How difficult can it be to put an advertisement in the newspaper?
6) Learning the ins and outs of property transactions, the nitty gritty details is well within the intellectual grasp of many.
7) Interested developer-buyers will have to TENDER upfront, thus ensuring the best price possible for owners.
8) It can be very simply executed – whether your estate is plonk in the middle of a busy housing estate or in district 10, it will sell itself.

Too long, estate owners have been brainwashed into thinking their estate needs to be ‘marketed’ before anyone will be interested in buying. Says who? Property agents! That you need their ‘expertise and professionalism” …. but do we really? Older estates in choice areas market themselves.

Do we really need to approach developers – or will they naturally come to us, after all, Singapore is tiny, they have no choice, land is more precious than gold and developers should be grateful that the owners are offering them a second bite at the cherry through redevelopment.

“Hey-hup! 702,162 sq ft of land smack in the middle of a booming housing estate, regional hub, walking distance to two MRTs, shopping centres, hospital, markets, CC, 7 minutes to the airport, 2 minutes to PIE etc……..any takers?”

They need your land more than you need to sell.

So what if they don’t bite the first time, genuine homeowners can wait, the false sense of urgency is created by the property agent and speculators in your estate. Take a step back - don't believe all their spiel.

It is time for owners to wrest control from those professional outsiders who have vested interests in the sale of their homes- and save themselves millions of dollars to boot. No doubt, it is more expedient and easier to delegate to a 3rd party - but how sure can you ever be that they will perform their duties in your best interests? Knowing that their on-going (repeat) business relationship with developer-buyers is more important than any one-off arrangement they have with you. Knowing that the faster they sell, the quicker they get their commission. Knowing that their commission is pegged to a wide sale price, ie, they will get the same commission if they sell at $X dollars as opposed to $XX dollars... so why should they put in the extra work for no return? This is one of the reasons why so many estates are sold at the minimum reserve price, much to the chagrin of the majority owners.
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I can hear property agents everywhere guffawing at the idea -
but think about it.
'It's so crazy it just might work'
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2 comments:

  1. Hi

    I have been following your blog for sometime, It is nice to have someone taking so much trouble to put up a blog for all (minority and majority) alot to learn from your blog, i am not sure if all the residence in TC knows about this blog , they too can throw in some ideas.

    Many thanks,

    ReplyDelete
  2. I have never advertised this blog in the estate; people either get to hear about it by word of mouth or accidently stumble upon it.

    Even though I am one of the minority objectors at the STB, this blog is not a group blog - indeed many members of that group are oblivious to its existence. If I have crossed the line anywhere then I and I alone take full responsibility. My full name is available to anyone who asks.

    I also DO NOT talk about the substance of our objections, I prefer to leave that to our lawyer at the hearing in June.

    I would love people to add their ideas - I will definitely publish them. The more the merrier, both majority and minority can contribute at will (though expect some moderation if the need arises).

    Perhaps you would like to contribute something?

    ReplyDelete