Thai's have no idea how to sell a property

[advancebooking]

Just my opinion but from experience I suggest that the average thai has no idea how to sell a property. 

 

Below are just 3 examples:

- We looked at a building after seeing a for sale sign up. Outside the windows on the shop front are dirty. Walking inside I think that they put  the sign up and did a 10min floor cleaning. Interior walls are all old (no new paint jobs or anything). Walking upstairs there was mould on the wooden hand rail. In one of the rooms was a bed leaning upright against a wall. It was really old and mouldy. Of course they want a huge price. Its been on sale for 2 months now....

- 2 yrs ago we noticed a sign up in a great location close to robinsons. Its a good size of land with a house that looks like a prison. Back then we called and asked the price. He said 120million baht. Couldnt believe this price back then. A few months ago it was announced Robinsons are moving out of that location bc the lease is not being renewed. Everyone is talking about it. We called back the same number bc the sign is still up. He now will not reveal the price over the phone but says he will only give it to people who look at the house. I told my wife to raise the point that robinsons are moving on in a few yrs. He said 'everyday the price of my property increases'.....

- A building we are interested in 10min away from our current location wanted top dollar for their property. Inside is old painted dirty walls and ceilings. Mould is visable on the walls of one room where the rain hits against the window. Floors were quite dirty as well. Its like they dont care about its presentation. Just put the sign up. Maybe sweep the floors thats it and they want top price despite the fact that the place needs some money spent on it. 

 

Back home people are anal about having perfect looking houses/ buildings to get the top price. In Thailand they are either stingy, lazy or clueless about marketing a property. Amazing Thailand...

[ThomasThBKK]

Yeah there's no transparency here, but i can tell you that no thai will pay these insane valuations.

In the US and europe you have websites like Zillow that show you exactly how much the houses in the same area are going for - here everything is made up, thais don't get that their stuff is only worth what people are willing to pay, they are living in la la land....

[advancebooking]

1 minute ago, ThomasThBKK said:

Yeah there's no transparency here, but i can tell you that no thai will pay these insane valuations.

In the US and europe you have websites like Zillow that show you exactly how much the houses in the same area are going for - here everything is made up, thais don't get that their stuff is only worth what people are willing to pay, they are living in la la land....

We know a thai Dr who did pay over the market price for a double size building. He was desperate to open a clinic of his own. He paid huge money despite there significant parking issues in that street.  I think he is from a very wealthy family and didnt care so much about the price....

[ThreeEyedRaven]

I was recently looking at property in my area and it did surprise me how shoddily prepared many places were for viewing. What was also surprising was that people with older properties didn't seem able to understand that they were not as desirable or worth as much as newer ones. I have seen more than a few houses up for rent and sale at stupid prices for an extended period, only to later see they have been repossessed by the bank. The sellers were too stupid to take a reasonable price, convinced that they would get what was never going to happen, and ended up losing it completely. In my hunt in the end, I decided it was too much like hard work and am staying put.

[ThaiBunny]

1 minute ago, ThreeEyedRaven said:

I was recently looking at property in my area and it did surprise me how shoddily prepared many places were for viewing. What was also surprising was that people with older properties didn't seem able to understand that they were not as desirable or worth as much as newer ones. I have seen more than a few houses up for rent and sale at stupid prices for an extended period, only to later see they have been repossessed by the bank. The sellers were too stupid to take a reasonable price, convinced that they would get what was never going to happen, and ended up losing it completely. In my hunt in the end, I decided it was too much like hard work and am staying put.

My understanding is that most Thais are reluctant to buy anything other than a completely new property anyway

[worgeordie]

Yes, it's the take it or leave it ,sales method,same with lots

rental properties they dont clean them properly before trying

to rent them out,but will not return your deposit because its

not clean enough.

regards worgeordie

[advancebooking]

21 minutes ago, worgeordie said:

Yes, it's the take it or leave it ,sales method,same with lots

rental properties they dont clean them properly before trying

to rent them out,but will not return your deposit because its

not clean enough.

regards worgeordie

Your comment is so true. All the places we rented were so dirty inside I couldn't believe it. Whenever we left a rental we used the bond money as the last months rent (eg we stopped paying the rent to use the bond money). But we always cleaned it well, took photos and handed the keys over to a happy landlord. One was not happy about us using the bond but I held my ground on it. 

[Orton Rd]

Something being only worth what another is willing to pay seems to go over their heads

[FritsSikkink]

50 minutes ago, advancebooking said:

We know a thai Dr who did pay over the market price for a double size building. He was desperate to open a clinic of his own. He paid huge money despite there significant parking issues in that street.  I think he is from a very wealthy family and didnt care so much about the price....

So there was a Thai who knew how to sell his house.

Looks to me you don't know how to buy a house if you are looking for 2 years already.

Edited December 13, 2019 by FritsSikkink

[baansgr]

Is anyone buying real estate anymore....my last visit to the land office earlier in the year was surprised how empty it was compared to previous years.....of course downstairs where they do the loan attachments to properties was chock a block....about says it all.

[advancebooking]

14 minutes ago, FritsSikkink said:

So there was a Thai who knew how to sell his house.

Looks to me you don't know how to buy a house if you are looking for 2 years already.

We are only ready to buy now. Started to familiarize ourselves with the prices 2 yrs ago to now. Anyone with half a brain knows this is the sensible modus operandi

[lopburi3]

There is no motivation to sell as tax is minimal or nothing (although they are trying to address that but it will likely take a long time) and the land will always have value and likely increase with time so nothing is likely to be sold at a loss - just passed on to family as if an investment.   

[worgeordie]

26 minutes ago, baansgr said:

Is anyone buying real estate anymore....my last visit to the land office earlier in the year was surprised how empty it was compared to previous years.....of course downstairs where they do the loan attachments to properties was chock a block....about says it all.

Buying property to rent out,is not feasible anymore IMHO,cost of property

too high,rents too low,finding long time reliable tenants,very difficult,in my

area at least,the good times are long gone,I remember one time  4 prospective tenants

at a property i had for rent,told them first one that returns with the deposit

gets it,luckily for me,the one that got it was  very good tenant and stayed for

8 years ,just about paid for the house.

regards worgeordie

[HeyHeyHey]

1 hour ago, advancebooking said:

nside is old painted dirty walls and ceilings. Mould is visable on the walls of one room where the rain hits against the window. Floors were quite dirty as well. Its like they dont care about its presentation. Just put the sign up. Maybe sweep the floors thats it and they want top price despite the fact that the place needs some money spent on it. 

 

Back home people are anal about having perfect looking houses/ buildings to get the top price. In Thailand they are either stingy, lazy or clueless about marketing a property. Amazing Thailand...

It's not about selling, it's about the way they live.

 

There is no concept of "My house my castle" when majority of westerners want to have beautiful, neat home they can be proud of and feel nice living in. Thais simply don't give a sh** if there is any work involved.

 

Just visit houses where people live - often it looks worse than prison. Even if the people aren't poor.

[sirineou]

It is the wild west in Thailand  , and you can't be sure when you are building your self, never mind buying someone else's build.

 Buying an already existing structure is always a gamble in Thailand because most places there are no codes and inspections., and whatever codes there are they're not strictly enforced. And even if there are codes and inspections  who is to know that the inspector was not paid off.

I built a new house a couple of years ago, we had proper engineered plans and applied for a building permit.

during the whole build no one came to inspect anything. Aside of me inspecting, how can anyone know that anything was done according to plan? At the end , how do they issue a Certificate of Occupancy (C.O. )  or whatever they call it here. If a bad batch of concrete comes, Do they send it back and tell all the workers to go home for the day, or do they just use it?  If they don't have enough steel do they stop the build and wait for more steel to be delivered?

  As far doing an evaluation (comparative market analysis CMA) how does one do that? There is no database of   Multiple listings (MLS) to know what's on the market , how long it has being in the market, what price changes and what it sold for in the end. Tax and transaction records are inaccurate. Using a divining rod would be just as accurate.  

 

Edited December 13, 2019 by sirineou

[Thailand]

1 hour ago, advancebooking said:

Your comment is so true. All the places we rented were so dirty inside I couldn't believe it. Whenever we left a rental we used the bond money as the last months rent (eg we stopped paying the rent to use the bond money). But we always cleaned it well, took photos and handed the keys over to a happy landlord. One was not happy about us using the bond but I held my ground on it. 

I think most contracts actually say that you cannot use the "deposit" in lieu of rental payments?

[advancebooking]

11 minutes ago, Thailand said:

I think most contracts actually say that you cannot use the "deposit" in lieu of rental payments?

correct but a contract here is akin to toilet paper. in all our situations we always paid the rent on time and they respected us/ trusted us and therefore didnt argue too much at the time of moving out

[CNXexpat]

A friend´s girlfriend wanted to buy a house. She visited it alone and negotiated with the owner a price of 3.5 million Baht. At her next visit she came with her farang bf. Only the gardeners where there, because the owner lives in Bangkok. When she telephoned again with the owner the price increased to 5 million Baht. They guess that the gardeners told the owner that she came with a foreigner. 

 

So the friend´s gf doesn´t buy the house and the owner gets no 5 million and also no 3.5 million Baht, a sum with which he would have been satisfied in the beginning. 

[Bassosa]

I can relate.

 

We have some shops for rent, recently completed. I'm trying to convince my other half that we should demolish the metal fence around it so people can actually see the shops, now that they're done. Put "for rent" signs in the windows, instead of on said fence, perhaps even switch on some interior/exterior lights at night to make it extra visible.

 

She doesn't think it will make a difference and rather have it all boarded up until we find a renter.

 

I just don't get that.

 

 

[advancebooking]

3 minutes ago, Bassosa said:

I can relate.

 

We have some shops for rent, recently completed. I'm trying to convince my other half that we should demolish the metal fence around it so people can actually see the shops, now that they're done. Put "for rent" signs in the windows, instead of on said fence, perhaps even switch on some interior/exterior lights at night to make it extra visible.

 

She doesn't think it will make a difference and rather have it all boarded up until we find a renter.

 

I just don't get that.

 

 

you should stand your ground with her and do what you suggest. thais have no idea...

[4MyEgo]

The Thai methodology or summation when it comes to value goes like this:

 

Price = 120,000,000

 

Counter offer = 100,000,000

 

Price = 120,000,000

 

Counter offer = 110,000,000

 

Price = 120,000,000 "up to you"

 

Two years later, property still vacant, new enquiry, repeat above = Thai value.

[PingRoundTheWorld]

2 hours ago, ThreeEyedRaven said:

What was also surprising was that people with older properties didn't seem able to understand that they were not as desirable or worth as much as newer ones.

I was wondering the other day about how come older hookers overall ask for more money than younger ones, even though younger ones are usually more desirable. I think it's the same principal - they "learned" what they perceive to be the market price when the market was booming, and now their pride and stupidity won't let them adjust their expectations and reduce the price when the market isn't doing so great, while younger ones who came on the market more recently charge more realistic market rates. Result: they get significantly less business and end up in a financial downward spiral, which only makes them more entrenched in their overpricing because now they have to make up for lack of business.

 

But any bubble bursts. Just a matter of time.

[Vacuum]

39 minutes ago, CNXexpat said:

A friend´s girlfriend wanted to buy a house. She visited it alone and negotiated with the owner a price of 3.5 million Baht. At her next visit she came with her farang bf. Only the gardeners where there, because the owner lives in Bangkok. When she telephoned again with the owner the price increased to 5 million Baht. They guess that the gardeners told the owner that she came with a foreigner. 

 

So the friend´s gf doesn´t buy the house and the owner gets no 5 million and also no 3.5 million Baht, a sum with which he would have been satisfied in the beginning. 

So your friend saved 3.5 million baht.  Who the heck would by a house for a gf! She could kick you out after all the paperwork is done. Bye-bye 3.5 mill.

[CNXexpat]

2 minutes ago, Vacuum said:

So your friend saved 3.5 million baht.  Who the heck would by a house for a gf! She could kick you out after all the paperwork is done. Bye-bye 3.5 mill.

 

Please read this sentence again and think about it. 

47 minutes ago, CNXexpat said:

A friend´s girlfriend wanted to buy a house.

[luckyluke]

37 minutes ago, 4MyEgo said:

The Thai methodology or summation when it comes to value goes like this:

 

Price = 120,000,000

 

Counter offer = 100,000,000

 

Price = 120,000,000

 

Counter offer = 110,000,000

 

Price = 120,000,000 "up to you"

 

Two years later, property still vacant, new enquiry, repeat above = Thai value.

More like :

" Two years later, property still vacant,

new price :

130,000,000." 

[Vacuum]

22 minutes ago, CNXexpat said:

 

Please read this sentence again and think about it. 

Does she have an unmarried sister?

[Happy Grumpy]

I've gotten great deals on property here.

 

Perhaps those ones don't need the money, if they did, they'd sell them cheaper.

 

 

There's a row of 5 nice townhouses built by the same person 5 years ago. They've sat empty since completion with for sale signs. We called, they refuse to rent, only to sell.

 

They could rent them for at least 15k a month, probably 20k as the location is good. 

4.5 million in rent at the lower price with 100% occupancy since they were built. Say 3.5 mill realistically. 

 

Perhaps built as a gift to pass onto the kids. 

 

Obviously don't need the money (to pay off any loan used to build them, so likely paid for with spare cash).

 

If they did need the money they'd have sold them cheaply or rent them out until sold.

 

 

Not every Thai is some peasant earning 5k a month and living in some field, no matter how much you fool yourself. 

[4MyEgo]

40 minutes ago, luckyluke said:

More like :

" Two years later, property still vacant,

new price :

130,000,000." 

Your absolutely correct, I forgot to add the 4% annual increases ????

 

[Metropolitian]

No matter the look of it.

The smell of fresh baked apple pie

and the sale is done.

[4MyEgo]

11 minutes ago, Happy Grumpy said:

Obviously don't need the money

Outlay vs income, a loss is a loss that will never be recovered, I dare say they are obviously not in the business of making money.

 

I know of a client who I do work for on a consultancy basis annually back in the old country who is worth around 150 mil AUS, down to earth kind of bloke, e.g. can sit down and have a beer with, anyway he built his empire off of his own back, and if he has to reduce his rents by $20 he will protest vigorously, hence the reason he uses me to provide him with a report supporting higher rents, because as he says, rates go up, maintenance costs go up, insurance costs go up, taxes go up and I am not in the business of losing money, especially to the government...lol

 

It would appear these guys didn't work for their money so no sweat off of their backs, but a loss is a loss, simple math, really, and I can't see them riding the vacancies off o taxes, and or making a capital gain, especially if they have been vacant for so long.

Edited December 13, 2019 by 4MyEgo