Source: HDB Website
In this new method, prices must first be agreed upon and option to purchase granted before buyers can request a valuation from HDB. HDB will also no longer give valuations to sellers. In the past, sellers usually got valuations first and then negotiated with buyers over how much more less should be paid. The excess cash over valuation is known as the COV. The Problem With the Old Practice The argument behind this change is that the bargaining should be based on recent transaction prices and not the COV. While that is a valid point, COVs have become the benchmark which people compare against, so most people bargain based on recent COVs, Comparing COVs though bring up an issue which is ......National Development Minister Khaw Boon Wan announced that cash over valuation (COV) figures will no longer be used in negotiating HDB resale deals.