How Much Is Your Home Really Worth? (And How Valuation Works)

Whether you're upgrading, refinancing, or just curious, it pays to know what your home is genuinely worth — not the figure a neighbour quoted over coffee. The good news: valuation isn't a black box. It's a disciplined reading of recent transactions, adjusted for the things that make your unit specific. Here's how it works.

Market price vs valuation — two different numbers

People use "worth" to mean two things, and conflating them causes expensive surprises:

• Valuation is an independent estimate of fair value. A bank relies on it to decide how much it will lend against the property.
• Market price is what a buyer actually agrees to pay on the day.

They usually sit close together — but not always. On a resale, if the agreed price is above the bank's valuation, the buyer has to top up the difference in cash (you'll hear this called Cash Over Valuation). Knowing the valuation before you negotiate keeps you from over-committing.

What actually drives your home's value

Roughly in order of impact:

• Recent comparable transactions — the single biggest driver. What did similar units nearby actually transact at?
• Floor area — value is often expressed per square foot (PSF), so size scales the total.
• Floor level & facing — a high floor with an unblocked view commands a premium over a low floor in the same block.
• Age & remaining lease — for leasehold homes, a shorter remaining lease gradually pulls value down.
• Condition & renovation — a well-kept or recently renovated unit can fetch more than a tired one.
• Unit type & layout — efficient, well-proportioned layouts are easier to sell and value higher.

How a valuation is actually done

The workhorse method is comparison. A valuer (or a good data tool) gathers recent transactions of similar units in the same project or vicinity, converts them to a price PSF, and then adjusts for the differences between those units and yours — a few percent up for a higher floor, down for a shorter lease, and so on. The adjusted PSF, multiplied by your floor area, gives the estimate. It's evidence-led, which is exactly why the quality of the comparable data matters so much.

Why two "identical" units are valued differently

Two units in the same block, same size, can value 5–15% apart. The reasons are mundane but real: one is on the 25th floor facing the park, the other on the 4th facing the carpark; one was renovated last year, the other in 2008; one stack gets morning sun, the other afternoon heat. "Same project" is never "same unit" — and the adjustments for these differences are where amateur estimates go wrong.

HDB resale: valuation and the COV gap

For HDB resale, the flow is specific: buyer and seller first agree a price, then the buyer requests an official HDB valuation. If the agreed price exceeds the valuation, the buyer pays that Cash Over Valuation portion in cash (CPF and the loan are sized off the valuation, not the price). That's why, as a seller, pricing close to supportable comps matters — and as a buyer, knowing the likely valuation protects your cash.

What can drag your valuation down — and what to fix before you sell

Some value gaps are structural — floor, facing, remaining lease — and out of your hands. Others are fixable before you list:

• Tired condition. Worn flooring, dated kitchens and visible defects make both valuers and buyers cautious. A light refresh — paint, a deep clean, minor repairs — often pays for itself.
• Cluttered, dark viewings. Value is partly perception; a bright, decluttered home presents (and photographs) as worth more.
• Pricing off stale comps. Anchoring to a high sale from two years ago sets you up for disappointment — use recent transactions only.
• Unpermitted alterations. Hacked walls or works done without approval can spook buyers and complicate their financing. Keep your documentation in order.

You can't change your floor or your lease — but presentation and realistic pricing routinely move the final number.

How to read the comps yourself

1. Pull recent transactions (last 6–12 months) for your project or street and unit type.
2. Convert each to PSF so you're comparing like with like.
3. Adjust for the obvious differences — floor, facing, lease, condition.
4. Take a sensible mid-range, not the one outlier that flatters you.

Doing this by hand is fiddly — which is exactly what an instant, data-backed tool is for.

Keep reading

• HDB upgraders — your valuation is the number every upgrade plan starts from.
• Resale vs new launch — how pricing differs between the two.
• Freehold vs leasehold — how tenure shapes value over time.

Frequently asked questions