Purchaser's Closing Costs

[Misty]

Can anyone give me a ballpark figure about the additional costs a property buyer usually pays? I understand that the real estate agent's 3% commission is generally paid by the seller. How much does the buyer pay in terms of closing costs and legal fees? And if the buyer qualifies for financing, how much to originate a loan?

Thanks for any help, Misty

[backflip]

Misty,

There are many posts regarding the questions that you have raised, and I suggest that you use the SEARCH function. As with the purchase price, the "who pays for what tax or fee" is negotiable. Some fees are generally paid for by the buyer or seller. Other fees are generally paid 50/50 by the buyer and seller. And, as I mentioned earlier, you can negotiate the payment of the fees. When I bought my condo 2 years ago, at a substantial discount from the absentee farang seller, I negotiated that he pay all fees, commissions, and taxes.

[Misty]

Thanks Backflip. I had already used the SEARCH function, and searched for both "closing costs" and "commission". That's how I learned about the 3% commission generally charged. I didn't see any specific figures for what legal costs might run, or any other closing costs. Didn't see anything on loan origination fees either. These costs can add up in my home country, but perhaps they are so small here as to be not worth a comment?

Anyways, I had thought maybe someone who had recently purchased might be able to help. But thanks anyway.

Misty

[ProThaiExpat]

The posts so far seem almost to be referring to western style transactions.

Many sales of homes in Thailand don't involve real estate agents.

Likewise land transfer fees vary depending on the local land office and how distorted the "reported" purchase price is.

When I bought my house, I not only saw the developer lie considerably regarding the purchase price of the land and the house and was told the land office knew this practice was going on and were happy with what was finally arrived at as fees, my recollection was 5k on a 2 million dollar property. My land transfer fees for the lease and mortgage were 40K and tax on the 30 year lease agreement was 10k and that was 5 years ago.

I am sure there are many western style deals when falang are both the buyers and sellers and real estate agents are involved.

In the west, fees and taxes are quite liquid, many buyers and sellers including "household furnishings" in the purchase price so real estate taxes don't apply to that portion of the purchase price. 10% in the last transaction I was involved in.

[backflip]

"Didn't see anything on loan origination fees either. These costs can add up in my home country, but perhaps they are so small here as to be not worth a comment?"

From what I've read, the laws within Thailand do not allow Thai financial institutions to offer mortgages to farang purchasers. There's at least one bank in Singapore that will give farangs a mortgage on Thai property. I've purchased several homes in the US and I'm familiar with "loan origination" fees, and a dozen others. I imagine that financial institutions outside of the US are at least as imaginative in removing money from a mortagee's wallet, but I can't attest to that.

[Misty]

Okay, thanks. I've heard that farangs with permanent resident status can also get loans from Thai banks. Or if you have one, your Thai spouse can.

From what I can work out, the overall closing costs are pretty minimal, which is probably all I need to know for my analysis.

Thanks again! Misty

"Didn't see anything on loan origination fees either. These costs can add up in my home country, but perhaps they are so small here as to be not worth a comment?"

From what I've read, the laws within Thailand do not allow Thai financial institutions to offer mortgages to farang purchasers. There's at least one bank in Singapore that will give farangs a mortgage on Thai property. I've purchased several homes in the US and I'm familiar with "loan origination" fees, and a dozen others. I imagine that financial institutions outside of the US are at least as imaginative in removing money from a mortagee's wallet, but I can't attest to that.

[shochu]

not much.

less than 40,000 baht for me.