Establishing value of parcel of land

[isaanistical]

My step-son (khun thai) wants to sell off a piece of land (never built on) that he will never use. It's just 7 rai but should be useful to someone and he wants the cash for a business idea.

 

The question is, how does he establish roughly what that land might be worth? When I search google, etc, all I get - obviously - are answers relating to farang buying/selling. How do Thais go about working out what their land is worth (per rai) in a particular area?

 

Also, is there any government tax on sale of land that Thais have to pay (naive question, perhaps) beyond a 3 percent fee if an agent is used.

 

[I searched for this in the TV forums but surprisingly can't find anything]

[KhunLA]

Simply go to land office and ask them.  That will usually be a low ball number, but I wouldn't pay more the 2X that.  

 

Everything I, we have bought, has been at the land office price, or lower than I price I would sell it for, or what other have paid in the area, if known.

 

Depending on area, some lots appreciate very fast, 2-5X purchase price in 5-10 yrs.  Our experience anyway.

 

Biggest deciding factor, is it farmland, or a ready to build on lot.  If needing backfill, that can add up quick.  Does it have access to water & electric, less than 100m away, and on paved road or not.

[rumak]

Use Common comparitive pricing :  (leg work and critical thinking needed) 

 

1 .  Location and usage :   Rural or very rural ? (  are water and electric at property or close by?    Rice field or  higher elevation which requires no or little filling.   

         or

on a good road in an area that is developed.... ( if can be used commercially then that is much more valuable/expensive

 

2.  Given the criteria above..... go ask what people are selling their land for that is equivalent to what you have .    And other types as well .  Get many "quotes" . 

DO NOT  ask " how much can i sell my land for?"  .    do not ask agents.  ask regular people in the area if any land is for sale .    take a look.   ask how much .  keep a record in your head or on paper. 

 

3. Compare your land to the others ( which would YOU prefer if looking to buy ).

   take the time to assess all aspects ( neighbors,  junk yard next door, etc etc ) 

 

just the basics i listed..... but other factors as well.   OH.... and of course what type of title does the land have ?????  Chanote (best)  or nor sor sam ( have 1 or 2 types), and then lesser desirables.     very important 

 

as LA says..... the land office will have an "assessed value"  .  good for a reference but almost always under real time value . 

 

 

 

 

[davb]

How will he try to sell it? Just a sign on the property?

My Thai wife has a vacant lot in Pattaya that she is trying to sell. Is there the equivalent of an MLS listing service in Thailand? It's touchy for us because her nephew wants to sell it, so we don't know if there is more to do than put up a sign and we can't bring in an established real estate person.

[isaanistical]

6 minutes ago, KhunLA said:

Simply go to land office and ask them.  That will usually be a low ball number, but I wouldn't pay more the 2X that.  

 

Everything I, we have bought, has been at the land office price, or lower than I price I would sell it for, or what other have paid in the area, if known.

 

Depending on area, some lots appreciate very fast, 2-5X purchase price in 5-10 yrs.  Our experience anyway.

 

Biggest deciding factor, is it farmland, or a ready to build on lot.  If needing backfill, that can add up quick.  Does it have access to water & electric, less than 100m away, and on paved road or not.

Thanks for this. Couple of thngs I had not even considered. The land in question is about 500km away, though - would a land office (presumably has to be the relevant changwat?) respond by phone or does someone actually have to go there?

[rumak]

6 minutes ago, davb said:

How will he try to sell it? Just a sign on the property?

My Thai wife has a vacant lot in Pattaya that she is trying to sell. Is there the equivalent of an MLS listing service in Thailand? It's touchy for us because her nephew wants to sell it, so we don't know if there is more to do than put up a sign and we can't bring in an established real estate person.

 

ALWAYS  best to sell yourself .   But also difficult for those with no experience doing so.     That said..... "established real estate people",  middlemen,  neighbors wanting a percentage, etc............. all can lead to problems .   Using the word "trustworthy" is very dangerous in today's  world.

 

** i left out lawyers .    watch out  **

[KhunLA]

Just now, isaanistical said:

Thanks for this. Couple of thngs I had not even considered. The land in question is about 500km away, though - would a land office (presumably has to be the relevant changwat?) respond by phone or does someone actually have to go there?

I'd think it best to ask at said changwat.  Having the chanote #, and they can give you the value & transfer tax charge, for that and past sales.  When last time the area was reassessed.

 

If not on a paved road, make sure you don't need any easements from neighbors to access it.  

[isaanistical]

4 minutes ago, davb said:

How will he try to sell it? Just a sign on the property?

My Thai wife has a vacant lot in Pattaya that she is trying to sell. Is there the equivalent of an MLS listing service in Thailand? It's touchy for us because her nephew wants to sell it, so we don't know if there is more to do than put up a sign and we can't bring in an established real estate person.

No, not a sign on the property - we had not considered it! We are not exactly local, and though the circumstances are not like yours, there are some touchy aspects (in his family, whose 'present' it was and they rather expected him to keep it) to be got round. Anyway, does a sign on the property EVER work (I got so used to seeing them everywhere but they stay up for years!)

[KhunLA]

3 minutes ago, isaanistical said:

No, not a sign on the property - we had not considered it! We are not exactly local, and though the circumstances are not like yours, there are some touchy aspects (in his family, whose 'present' it was and they rather expected him to keep it) to be got round. Anyway, does a sign on the property EVER work (I got so used to seeing them everywhere but they stay up for years!)

If not a 'red stamped' chanote, I'd give it a pass.

[rumak]

Land is far away .......... problems with the family ...... other names on deed....... no road yet but "coming soon" .......... her sister wants half............. no legal easement but neighbor says no problem......

 

ahhhh,   so many times there are complications.    to get answers,  each possible complication needs to be addressed.    

 

 

[davb]

6 minutes ago, isaanistical said:

No, not a sign on the property - we had not considered it! We are not exactly local, and though the circumstances are not like yours, there are some touchy aspects (in his family, whose 'present' it was and they rather expected him to keep it) to be got round. Anyway, does a sign on the property EVER work (I got so used to seeing them everywhere but they stay up for years!)

 

I wish there was a Thai equivalent of Zillow. We had one person (the neighbor) see the sign and call about it, but that was all.

With all the people moving into Pattaya I thought there would be interest in a residential lot, but that's the only response in almost 9 months - no one even calls to ask the price.

[isaanistical]

17 minutes ago, KhunLA said:

If not a 'red stamped' chanote, I'd give it a pass.

It is chanote - looking at the doc now. That appears to be the only good thing about it!

[Sophon]

4 hours ago, isaanistical said:

Thanks for this. Couple of thngs I had not even considered. The land in question is about 500km away, though - would a land office (presumably has to be the relevant changwat?) respond by phone or does someone actually have to go there?

 

I doubt you would be able to get that information over the phone, however you might be able to find the valuation on this website:
https://landsmaps.dol.go.th/
Not all land parcels have a valuation registered on the site, though.

[KhunLA]

1 hour ago, Sophon said:

 

I doubt you would be able to get that information over the phone, however you might be able to find the valuation on this website:
https://landsmaps.dol.go.th/
Not all land parcels have a valuation registered on the site, though.

I wouldn't put too much stock in that site.  Accurate land office (LO) info, but not sales price.

 

Just looked at a plot we bought this year, or late last year.   States ฿1k per wa², or ฿400k per rai, ~฿100k per 1/4 rai, and was the price ~10+ yrs ago.  A rai in the area was going for about ~฿400k, as we, the wife, priced many.

 

We paid ฿350 for 1/4 rai (100 tw), bought 2, and happy with the price (2024/25). 

Bought one over 1 year earlier (2023), for ฿250, up the same soi a couple lots.  Across from our house lot.

 

Bought the lot the house sits on, for ฿76k, 10 yrs ago, the LO price fits that purchase.  Was a bank repo, from years before.  All lots on the soi are 1/4 rai.  A developer bought, split & got repo'd by bank.

 

Other sales on same soi, for 1/4 rai, were ฿450k & ฿640k, over 2 yrs ago.  So going price  now is about ฿500k for 1/4 rai, and we wouldn't sell ours for less.

 

Just asked the wife, and that was the valuation of the lots, and what transfer tax was based on, ฿1k per wa², but certainly not what the sales price was.  And the lots we bought, were the cheapest, at time purchased.  

 

When I suggested land office would be 'low ball' price, I didn't expect it to be that low.  

 

That is the standard way, we've experienced.  Never tell land office what you paid, let them tell you what the tax is  

 

Same in other province, Udon Thani, that we bought & sold lots.