Bank mortgage property appraisal

[stubuzz]

Does anybody know what criteria Thai banks use for their appraisals and are there any websites i can get any baseline info from?

[stubuzz]

Ok no replies.

Has anybody had any experience with the bank's appraisal being lower than the selling price?

[alacrity]

With experience from properties we sold over the last few years. Banks are looking at what they can recoup if the buyer defaults. Subsequently, they tend to approve a loan for value less than a figure which they can recoup if the buyer defaults. If you're considering percentage values, then giving a pass on that thought is worthy of merit.

 

Loans can be procured from other sources and subsequently have fewer procedural rights.

 

At the moment, property investment is more of a Hail Mary than a Punt. Having the funds to invest for a long term investment could well be a winner.

[Susco]

3 hours ago, stubuzz said:

Ok no replies.

Has anybody had any experience with the bank's appraisal being lower than the selling price?

If the appraisal is lower than the selling price, then obviously the property is overpriced.

 

Banks look at what similar properties in the same area/building have been sold recently.

 

They know how much land is being sold in that area.

[stubuzz]

1 hour ago, Susco said:

If the appraisal is lower than the selling price, then obviously the property is overpriced.

 

Banks look at what similar properties in the same area/building have been sold recently.

 

They know how much land is being sold in that area.

I think most properties are overpriced.

Here is a good link that gives you the government's appraisal value for land. You have to input the chanote number to use it.

 

https://www.dotproperty.co.th/blog/ราคาที่ดิน-ตรวจสอบแบบ-online

[Susco]

2 minutes ago, stubuzz said:

I think most properties are overpriced.

Here is a good link that gives you the government's appraisal value for land. You have to input the chanote number to use it.

 

https://www.dotproperty.co.th/blog/ราคาที่ดิน-ตรวจสอบแบบ-online

 

I'm not sure if all properties are overpriced.

 

My house is on the market for 8 million, and end of last year BB appraised it 10.3 and SCB 11.5 for a mortgage.

 

Banks don't use the government appraisal values. I think in my area government appraisal for 1 Rai is about 500K, but land is sold at 4.5Million, and the banks use that price.

 

Like I said they know what prices other properties in the area have sold for recently, and base their appraisal on that

[Pedrogaz]

Thailand is a funny place having no real estate agents. Unless you live in Bangkok or Pattaya where the place is swarming with UK real estate agents flogging condos, there seems to be no one you can approach to buy a home or a piece of land. It seems that lots of people will show you lots and property for sale but they are just neighbours doing it apart time to earn some points money. I assumed that when I built my home I was making an 'investment'. I realise not that there is no way I could sell it for even 50% of what I paid for it....and I think I would struggle to get 25%. Buying land is better as an investment...building seems to reduce the value.

[AgMech Cowboy]

We bought our house from a developer who had already gotten loan value approvals from SCB and Kasikorn. We just had to get qualified for the loan. As I recall we borrowed less than the loan value that the developer had gotten approved.  I do remember that the bank has a department that does the appraisals. We just didn't have to deal with them. Good Luck

[LukKrueng]

22 hours ago, stubuzz said:

Ok no replies.

Has anybody had any experience with the bank's appraisal being lower than the selling price?

Few years ago I got appraisals on 2 properties, both were higher than the purchase price

[kamalabob2]

Real Property appraisers are licensed in Thailand. I went to my local bank and got the contact information for a real licensed appraisal company they hire before they will grant a loan. The property appraiser came to my home, did measurements, look at approved building plans, looked at the property title paper, took many photos. Then they spent time at the land office to verify information. They did did "comps". I paid for the appraisal to set a selling price lower than the appraisal price. It was made clear the same exact home in a "village" would be worth less. But the same home is some more desirable neighborhoods in Buriram it would be worth more money. Location, Location, Location seem to be universal rules of real estate values, not just in Thailand. It was suggested we paint a bedroom a different color so we have taken that action. The fee for a residential appraisal is based on how many structures on the parcel. I paid 7,000 baht since I have three structures on the one parcel of land in Buriram.  I was told by the bank, that a prospective mortgage applicant would also have to pay for an appraisal since often homes are priced higher than a bank wants to loan. This is but one part of a licensed home appraisal in Buriram. 

https://www.buriramhome.com/buriram-house-appraisal-floor-plan/

[Ruffian Dick]

My experience in the US is that the appraised value is always far below the sale value. The magic of the marketplace etc.

Secondly, there are real estate agents in Thailand, the difference is that there is no license for them, so they can do as they please without repercussions. If you find a good one, keep them and recommend them to friends.