By Winfred Quek · CEA R073319H · Published 26 August 2026
Rates and thresholds change. The current figures are kept in one place: the Singapore property rules reference.
Facts verified against the sources linked throughout this guide.
You have agreed a price with your buyer, and it can feel like the number is settled. It is not, quite yet. Your buyer's bank will send its own valuer, and it lends against the lower of the agreed price or that valuation, not the price you shook hands on. Understanding this process, and what happens if the figure comes back short, protects your deal during the window when it is still exposed.
Why the valuation matters as much as the price
For a first residential property on a bank loan, the Loan to Value limit is 75 percent, and that percentage is applied to the lower of the purchase price or the bank's own valuation, not the price alone. If your buyer agreed 1.5 million dollars but the bank values the unit at 1.4 million, the loan is calculated off 1.4 million, and the gap becomes a Cash Over Valuation shortfall your buyer must fund themselves, since it cannot be covered by the loan or by CPF. As the seller, this is not academic, if your buyer cannot find that cash and has not yet exercised the Option to Purchase, your deal is at risk before it has even become binding. Our downpayment and Loan to Value guide covers how this mechanic works from the buyer's side, worth understanding so you can see the deal the way your buyer's bank will see it.
Do your own homework before the valuation comes back
You are not powerless while you wait for the bank's figure. Pull recent comparable transactions for units like yours before you even agree a price, so you have a realistic sense of where a valuation is likely to land rather than finding out only when the report comes back. A price that is well supported by recent comparables is far less likely to produce a nasty surprise than one set by feel or by what you hoped the market would bear. Our pricing your property guide covers the full method for triangulating a price against comparable transactions and likely bank valuation, worth doing before you list, not after an offer is already on the table.
Why valuations do not always match the agreed price
A valuer is working from recent comparable transactions, the condition and floor level of your unit, and their own professional assessment, not from what a buyer was willing to pay to secure a particular unit they wanted. In a fast moving market, or where a unit has features a buyer values highly but a standard valuation model weighs less, the agreed price can sit above a conservative valuation without either side having done anything wrong. This is normal, and it is exactly why checking early, rather than assuming the price and the valuation will simply match, matters.
Timing it inside the option period
The real protection for both sides is timing. The valuation should be checked during the Option to Purchase window, while your buyer still holds the option and before they exercise it. Once exercised, the Option to Purchase becomes a binding contract, and backing out at that point carries real consequences for your buyer, which is exactly why the smart ones check the valuation before committing that far. Encourage your buyer, through your respective agents if applicable, to move on the valuation promptly once the option is issued, rather than leaving it until the exercise deadline is close and there is no time left to respond if the figure comes back low.
As the seller, you cannot commission your buyer's bank valuation yourself, but you can make it easier for the process to go smoothly. Keep your own recent comparable transactions and any relevant documentation on hand in case your buyer or their bank has questions during the valuation, and be responsive if access to the unit is needed. A cooperative seller who removes friction from this step is doing their own deal a favour, since delays here often trace back to access or information gaps rather than the valuation itself.
If the valuation comes in low
If the figure does come back below the agreed price, your buyer has a limited set of realistic responses, and knowing what they are helps you understand what might happen to your deal next. They can fund the Cash Over Valuation gap themselves if they have the means and still want the unit. They can seek a valuation from a different bank, since valuations are an assessment rather than a fixed fact, and different banks using different valuers can genuinely arrive at different figures. They can ask to renegotiate the price with you, treating the low valuation as evidence the agreed figure sat above the market. Or, if they have not yet exercised the option, they can walk away. Our full guide to a low bank valuation covers all four paths in detail from the buyer's side, worth reading together with your buyer if this situation comes up, so the conversation that follows is informed rather than adversarial.
What it means for your own net proceeds
One reassurance worth holding onto: your net proceeds are set by the agreed price, not by your buyer's bank valuation. A low valuation is your buyer's financing problem in the first instance, it only becomes yours if it leads to a renegotiated price or a collapsed deal. Our seller net proceeds guide covers how your actual walk away figure is calculated, worth revisiting if a valuation issue puts a renegotiation on the table so you know your own floor before that conversation happens.
Printable checklist for the option period
Everything above, condensed to one page for the window between agreeing a price and your buyer exercising the option. Print this checklist
Before you agree a price
- Recent comparable transactions pulled for units like yours
- Asking price checked against where a bank valuation is likely to land
During the option period
- Buyer encouraged to arrange the valuation promptly, not near the exercise deadline
- Loan to Value mechanic understood: the bank lends on the lower of price or valuation
If the valuation comes in low
- Buyer's realistic options understood: fund the gap, seek another bank, renegotiate, or walk away if not yet exercised
- Your own net proceeds floor worked out before any renegotiation conversation
Pricing a listing and want it valuation ready?
A price that survives a bank valuation is one built on comparable transactions, not hope. A Property Portfolio Analysis maps your numbers before you list.
Book a free 30 minute call WhatsApp WinfredFrequently asked questions
Why does the bank's valuation matter if I already agreed on a price?
Because the bank lends a percentage of the lower of the agreed price or its own valuation, not the price alone. If the valuation comes in below what you agreed, your buyer has to find the gap in cash, which can put the deal at risk.
Can my buyer get more than one bank to value the property?
Yes, and it is a legitimate response to a low first valuation. Different banks use different valuers, and figures can genuinely differ between them, so a second valuation sometimes closes or narrows the gap.
What is Cash Over Valuation?
It is the gap between the agreed price and a lower bank valuation. The loan is calculated off the valuation, so the difference has to be funded separately in cash by the buyer, it is not covered by the loan.
Can the buyer use CPF to cover a valuation shortfall?
No. The Cash Over Valuation gap must be funded in cash, it cannot be covered by CPF or by the loan itself.
When is the best time for a valuation to be checked?
During the Option to Purchase window, while the buyer still holds the option and before they exercise it. Once exercised, the option becomes a binding contract, so checking the valuation early protects both sides.
Sources & References
Winfred Quek is an Associate Marketing Consultant at Crestbrick Pte Ltd (CEA Licence No. L31010886H), CEA Registration No. R073319H. The information on this page is general and does not constitute financial, legal or tax advice. Always conduct independent due diligence and consult qualified professionals, including your conveyancing lawyer, before making any property decision.