How we sold our property (detached family home, southern Thailand)

[mjnaus]

When my wife and I started considering selling our home (just outside of Hat Yai, Songkhla province) I started by doing some research on this very forum. It quickly became apparent that there was, as usual, a lot of contradicting and often simply complete false information with regards of selling property in Thailand.

 

So I figured the information below might be of use to some other forum dwellers looking to sell their property.

 

We built the house 10 years ago, in an older mooban, close to Hat Yai airport (a few km's outside of town). Designed it ourselves but built by de developer selling us the land in the development. We took out a mortgage of 2.5mil baht and added some of our own funds as well. The land plot was just a bit over 123 tarang wah which is almost 500 sqm. The house itself was about 180sqm, 3 bedrooms, 2 bathrooms, western style kitchen, plenty of storage facilities and a large garden. We maintained the house well over the years, however given the typical construction standards, it did start showing its age in places.  We spent large amount of times abroad every year, but always have gardeners and cleaners over regularly to keep things nice and tidy.

 

We decided it's time to sell the property early this year (around April) and the first step we took was having one of those banners made up to stick on the front gate. In addition to mentioning the place was for sale, it also contained a QR code that linked to a simple website I put up with high quality pictures showing all the nice features of the home and the garden.

 

Within a few days we started getting some interest, mainly phone calls. Within a week we had some to take a look at the house and willing to discuss price. This was all a bit fast for us, as we were scheduled to head back to Europe within a week or so were thinking the house would be on the market for at least several months to a year or so and we'd come back next year to deal with the actual sale.

 

Yet, these guys were definitely interested and wanted to make a downpayment before we left so we'd take the property of the market. We finally negotiated on a price of 4.2mil (down from 4.5mil we initially asked) and agreed to a down payment of 200,000b while they'd apply for a mortgage. They'd have 3 months to complete their mortgage application. If the application wouldn't not be successful within those three months, we'd get to keep the down payment and we'd be allowed to put the property back on the market. All of this was handled by the attorney with official contracts.

 

So, papers signed and down payment received, my wife and I left back to Europe to wait it out. Time kept going by and didn't hear anything from the interested party of their lawyer. After a few months, my wife reached out and was told they were still waiting on the mortgage approval. Several more weeks passed and we started to get a worried about absolute silence. My wife's pregnant and the time frame in which we'd still be able to fly half way around the world and clear out our house was rapidly closing. My wife send another message to their attorney asking what's going on. He replied that it's taking longer because they had to refile the mortgage application under a different name (we assume the girl who initially applied didn't get approved).

 

All fine and dandy, but we couldn't continue to wait much longer. We decided to inform them that we'd be traveling back to Thailand in two weeks and if they'd be able to sort out finance by then, the deal was still on. If not, we would put the property back on the market and we'd get to keep the deposit (since the original time frame had since past).

 

Upon arriving in Bangkok last week, my wife reached out to the attorney who informed us that the mortgage was approved now and we could proceed getting the house in order to prepare for the official transfer at the land office a week later.

 

Last Friday, my wife and I, plus the buying party's attorney showed up at the land office around 8.30. At that time, it's already starting to get busy. You're given a queue number and than it's a matter of waiting until your number's up. When your number is up, the buyer and seller sit down with the land office rep who will process all of the relevant documents: the chanote, house book, ID's, construction permit (if there's a property involved instead of just land). If the seller is married, even to a foreigner, the spouse needs to be present as well (as he/she needs to sign some documents as well).

 

Verifying all the docs will take a while, about half an hour in our case. Once all verified, you're asked to wait until the updated chanote is ready. This took another 40 minutes roughly.

 

Next up is payment. Since the buyer is financing the purchase through a mortgage, there was a bank rep their from their bank. After the chanote is updated by the land office, it was this bank rep who picked up the chanote and came down to meet us (wife, me and the buyer's attorney). We were handed a cashiers check and after our approval the chanote was handed to the buyer's attorney.

 

There were some fees/taxes to be paid as well: transfer fee of 2% (either paid by the buyer or split between buyer and seller, we agreed on the latter), stamp duty of 0.5% and withholding/income tax. With regards to that last one, they consider the returns of sale of the property as income and hence it's taxed as such. The exact rules changed again recently and there's different sources online using different methods of calculating the final amount. In addition, the actual returns used to calculate the tax on are also vague; in our case the land office went with the registered value of just the land from when it was last surveyed (quite a few years ago) which ended up being roughly 2mil baht. Total fees for our side came to just below 90.000baht (property was sold for 4.2mil).

 

Hope this info is useful.

[Crossy]

Yeah, the process, including the mortgage delays and "creative financing" seems pretty typical, you got it all sorted remarkably quickly ???? 

 

We got a "construction loan" from SCB to build the house, to be converted to a mortgage on completion. By the time SCB had finished faffing around the house was finished (on my own coin) so it went straight to being mortgaged.

 

[proton]

Pics would be interesting

[KhunLA]

Good info ... thanks

 

Sort of mirrors our first sale, without mortgage drama.  Listed with realtor, and I placed on local forum.  Sold before realtor even posted on his site, via the forum.  All of 2 days, since signed to realtor, till sold.

 

A yank, so funds transferred from / to our USA accounts, as easier.  Land office & done.

 

2 nd house was a bit different, unique design, out of town, across from Wat made it a hard sell in a buyers market.  Took 3 years, again, all cash deal, from a foreigner who never saw the house in person, due to 'situation lockdown', airports closed w/ exceptions that he didn't fit.

 

GF & family saw and did the transfer at land office.  

 

Listed with realtors (useless), FB, Thai sites, and referral was from our grounds keeper, who got his commission at closing.  Realtor from 1st sale stopped doing business, others in the area (Udon Thani) were useless.

[KhunLA]

To add, both houses out of the 'main', 16 ish kms from town center, so not attractive to anyone not retired.   Daily commute to work in town would be expensive, even on a motorbike for minimum wage earner, or car driven for someone with better earnings.

 

Appreciation of property was strictly land driven, and not for structures.  

1st house ... cost 800k, sold 1.4m (7 yr old), on 1 rai

2nd house ... cost 2m, sold 3.5, I think (6 yrs old), 3 rai

 

After 2nd house sold, then listed (FB) 2 adjourning lots, which sold within 3 months of listing.

Cost 240k, sold 1.3m (6 yr old)

 

No appreciation of structures, since not in main downtown areas.

[ezzra]

Congratulation of the finalization of the sale of the house, however, had you consulted this forum or an estate agent you would have found out that bank's loan's approval can take many months and some time declined all together and probably more useful tips on selling properties in Thailand...

[mjnaus]

3 hours ago, ezzra said:

Congratulation of the finalization of the sale of the house, however, had you consulted this forum or an estate agent you would have found out that bank's loan's approval can take many months and some time declined all together and probably more useful tips on selling properties in Thailand...

We have been through this process ourselves in the past and it took about a month and a half (about 10 years).

 

Also, as I mentioned in my post, I did dig through content on the forum before starting the process, however the signal to noise ratio wasn't doing me any favors; lots of nonsense and faulty information.