I Need Help Selling Property In Thailand

[ufcsteve]

My wife is Thai and I am American. We live in the U.S.A.

We bought my mother-in-law a nice house in Thailand but she has decided to move to the U.S. and live with us.

We need to sell the house in Thailand by December of this year but I have no idea how to go about doing it. I do not speak Thai and my mother-in-law does not speak English so we will need a bilingual realtor.

The house is very big and very nice. It is 2 story in town with the lower level designed to be commercial ( store of some sort ) and the upper level to be living space. ( could be made into apartments ) It is located next to the hospital and the address is below.

The hospital has offered to buy the property for 5,000,000 baht but I have been told it is worth at least 7,000,000 baht

99 village NO. 11

Nong KO Sub District

Kranuan Khon Kaen Thailand

40170

Can some one please direct me to a realtor in the area?

[londonthai]

sell it the same way you have bought it.

even if you don't speak thai and your mother doesn't speak english - than your wife does speak both.

if you believe that you have to sell it by december than take the best offer now - the process of selling a property might take a good few weeks/months.

bear in mind the the price of property is going down (economy not doing that well, as well as an empty house in the tropical climate deteriorates fast).

[tangoll]

If you have a firm offer, sign the sales agreement, take the money and run if the offer price is halfway reasonable. The value of a property is only what a buyer is willing to pay for it; any other number as to what a property is worth is pure fiction.

I just went through a process of trying to come to terms with a prospective buyer of my purchase contract on a condo unit in Bangkok pre-title transfer. The negotiations took place entirely via the internet (I was in Hong Kong). All during this process;

1. The buyer never disclosed his name, identity or telephone number, despite my politely asking him/her several times.

2. When we finally agreed on a price, he kept coming up with reasons to delay signing a sales memorandum and putting up a holding deposit.

3. When I came to BKK, he/she wanted to see the condo unit, but kept putting that off, and finally withdrew from further discussion, saying he/she decided to buy a townhouse instead. All this was still thru email, even tho I had given him my local BKK number, which he/she never called for a phone discussion.

I suspected as much that this deal wasn't going to go thru, so I prepared my funds and documents, and took title of the unit this past weekend.

So the moral of this experience is that it's difficult to try to sell property via long distance, and if the buyer suspects that time is not on your side, the buyer will do whatever possible to pressure you into cutting your price with delaying tactics, making demands difficult for you to meet given your absence, etc.

So if you have an offer, take it, and move on. No regrets and don't look back to what you might have gotten. The price could drop.

[jonniebkk]

If you have a firm offer, sign the sales agreement, take the money and run if the offer price is halfway reasonable. The value of a property is only what a buyer is willing to pay for it; any other number as to what a property is worth is pure fiction.

I just went through a process of trying to come to terms with a prospective buyer of my purchase contract on a condo unit in Bangkok pre-title transfer. The negotiations took place entirely via the internet (I was in Hong Kong). All during this process;

1. The buyer never disclosed his name, identity or telephone number, despite my politely asking him/her several times.

2. When we finally agreed on a price, he kept coming up with reasons to delay signing a sales memorandum and putting up a holding deposit.

3. When I came to BKK, he/she wanted to see the condo unit, but kept putting that off, and finally withdrew from further discussion, saying he/she decided to buy a townhouse instead. All this was still thru email, even tho I had given him my local BKK number, which he/she never called for a phone discussion.

I suspected as much that this deal wasn't going to go thru, so I prepared my funds and documents, and took title of the unit this past weekend.

So the moral of this experience is that it's difficult to try to sell property via long distance, and if the buyer suspects that time is not on your side, the buyer will do whatever possible to pressure you into cutting your price with delaying tactics, making demands difficult for you to meet given your absence, etc.

So if you have an offer, take it, and move on. No regrets and don't look back to what you might have gotten. The price could drop.

Sounds to the guy was jerking your chain the whole time...why would deal with someone who wouldn't even disclose his name or contact information??? Why waste your time of such pretenders!!!

As to the hospital's offer, in this market, if you have a firm offer from them, I would agree with others that its best to take it. In the alternative ,you could post it for sale at various expat forums and places like eBay etc. (A friend of mine sold his provincial resort in the Philippines on eBay and got a decent price for it ) Especially as the house is located in the heart of bar-girl country, Khon Keon, there are always guys looking to set-up their newly found "love of their lives" or their mae/paews in comfortable homes up-country, those could be good places to find such mules.

[ufcsteve]

Thanks for all the advice.

While I do use eBay and online classifieds frequently I would really prefer to have the matter handled by a professional realtor. Someone who could give me an appraisal and let me know the fair market value of the property.

[jonniebkk]

Thanks for all the advice.

While I do use eBay and online classifieds frequently I would really prefer to have the matter handled by a professional realtor. Someone who could give me an appraisal and let me know the fair market value of the property.

Steve...you must know (I assume you lived in LOS for a time...am I wrong about this) that real estate transactions here are much more informal in many respects than in the West. This is especially so up-country. Things like "professional" real estate agents, title insurance, escrow companies, appraisals are non-existent or rarely used, except for very large transactions (much larger than a single home sale). I know, I have lived in LOS for 8 years and have bought a home here.

One way to guage what the house might be worth is to determine it's replacement cost...what does land cost in the area it's located in. Here, your Thai relatives should be able to get info on recent local land/house sales near your home. Then, when you have land costs, add in the cost to build a home upcountry...this is in the range of B7000-B10,000 per square meter. This would be the cost for "western" style construction and amenities. A more Thai style level of amenities would be lower...maybe B5000-B7000 per sm. Just get land replacement cost times construction cost and you have the cost basis for your property. Then, you can price higher as you think the market would bear.

In my mind, RE agents are a waste of time, both here in Thailand and in the West (my experience is USA also). With the internet, you can market any property to a world-wide audience by listing (many times for free) in the popular selling sites. I am sure there are also Thai specific RE selling sites your relatives could find that would also bring in Thai buyers. Once you have someone really interested agree on a fair price and payment methods and (buyer) will hire a bonified lawyer in KK and have them check that the title is clear of loans or other encumbrances at the local land office. Then just have a sales contract drawn-up and moneys paid and that's it. Simple.

Good luck...looks like a nice property...can you give more details, e.g., square footage, # bed and baths, land size. You might find some interested people at this forum.

[Farma]

Out of curiosity, who owns the land? Is it leased or owned by a member of your wife’s family.

As a guide, I’ve seen shop house style buildings of very similar outside design on leased land in another provincial city’s prime shopping district with asking prices between 1.2 and 1.6 Million Baht per unit.

As mentioned by others and from my experience, buying and selling is usually by word of mouth and the deals agreed between the buyer and seller direct.

[AmericanGuy1066]

...

The house is very big and very nice. It is 2 story in town with the lower level designed to be commercial ( store of some sort ) and the upper level to be living space. ( could be made into apartments ) It is located next to the hospital and the address is below.

The hospital has offered to buy the property for 5,000,000 baht but I have been told it is worth at least 7,000,000 baht

......

As mentioned by other posters, it's worth what someone would pay for it. If someone told you it's worth 7mio, I'd ask them on what basis, and would they be able to help shift it for you at that.

My take: 5mio? Khon Kaen? for the building in the photo? I wouldn't pay that for it as a home. Perhaps if I wanted a business + home combined maybe. 7mio no thanks - would be cheaper to buy the land and build something new/nicer. Doesn't seem like good vfm. Given your timeframe if 5mio is more than you paid for it and you're comfortable with that, try and negotiate upwards with the people that made the offer. Can't see you getting 7mio unless you're prepared to wait some time.

RE - very few decent ones in Thailand. Some would argue world over. More of a risk they waste your time

Edited August 30, 2007 by AmericanGuy1066

[AmericanGuy1066]

...

The house is very big and very nice. It is 2 story in town with the lower level designed to be commercial ( store of some sort ) and the upper level to be living space. ( could be made into apartments ) It is located next to the hospital and the address is below.

The hospital has offered to buy the property for 5,000,000 baht but I have been told it is worth at least 7,000,000 baht

......

As mentioned by other posters, it's worth what someone would pay for it. If someone told you it's worth 7mio, I'd ask them on what basis, and would they be able to help shift it for you at that.

My take: 5mio? Khon Kaen? for the building in the photo? I wouldn't pay that for it as a home. Perhaps if I wanted a business + home combined maybe. 7mio no thanks - would be cheaper to buy the land and build something new/nicer. Doesn't seem like good vfm. Given your timeframe if 5mio is more than you paid for it and you're comfortable with that, try and negotiate upwards with the people that made the offer. Can't see you getting 7mio off someone else. unless you're prepared to wait some time. You're talking USD 150 -200k - that's serious money for a city like that for "second hand" as the Thais would say. Have seen much nicer places in more desireable locations in Thailand for less. You'd have to get lucky to find a foreign buyer. Thais buyers? as mentioned, unless a business I can't see it happening, they'd buy new. For the hospital it's in probably the most convenient location possible for them. No-one else is likely to think so. So try and negotiate with them.

RE - very few decent ones in Thailand. Some would argue world over. More of a risk they waste your time given the demand I'd expect for the property

Edited August 30, 2007 by AmericanGuy1066

[ufcsteve]

Very interesting information. I had no idea.

I myself have never been to Thailand. I met my wife here in the U.S. She was working in a factory where I was her shift supervisor. ( lovely story for another day )

The property transaction was handled by her uncle in Thailand. The home was residence for uncle, mother-in-law and two step sons.

Uncle has since passed away and my step-sons are now living with my wife and me in the USA. Mother-in-law lives alone now and she is old and may not be capable of doing what needs to be done.

Her visa has been approved and assuming her interview goes well she will be coming to live with us soon.

Considering the options perhaps selling an online sale would be the way to go. If that doesn’t work there’s always the hospitals offer to fall back on.

[jonniebkk]

With these new details, I would even more strongly recommend you go with the hospital's offer. The other option is to rent/lease it out. Maybe you don't know, but the RE market and the economy in general in Thailand right now is at a standstill to declining slope. The market for foreigners in practically dead in the water because of various legal uncertainties regarding land ownership by foreigners. Therefore, it's likely that your market will be primarily be Thais (also because it is a shop-house combination, which is more appealing to Thais than most foreigners, even more so in Khon Keon). As you say it's located adjacent to a hospital, it may appreciate in the future due to the hospital's need for more space or the economy improving and demand for retail business space growing. Maybe if possible lease all or a part of it out. Sell it later.

Just be aware that RE transactions in Thailand (and most developing countries) are nothing like back home Much more informal. Also, you need to determine the type of title whoever legally owns the land has. There are many different types in Thailand. Also, is it free-hold or lease-hold title that your family has to the land. Don't forget, in most parts of the world outside the USA, land and the improvements on the land (i.e., the house or other structure on it) are owned separately...sometimes by different parties. You need to determine all these things so you are aware of what it is exactly that you own and have the right to sell.

Hope this provides some pointers to you...if nothing else, it gives you a reason to come over here for a working vacation and see the sights of KK/Isaan

Edited August 30, 2007 by jonniebkk

[tijnebijn]

The 5 million form the hospital seems a well first offer .

Because they want it they probably need the space , so a big chance they would want to pay a bit more for it.

I would say let your wife come over , have a chat with some staff or director at the hospital .

And come back home with perhaps 6-7 million baht .

not sounds bad isn't it ?

[Jomtien]

Guys,

i just stumbled upon this thread, iam not RE-agent and have never sold any property (only bought..) whatsover but just from the pic posted it seems that the hospital is in for the ground. Ground is very valuable in every city. To make suggestions to sell it at suggested price without knowing the size of the plot (and location) is to me stupid.

It is very easy to trace the value of ground, even on thaivisa there are links to the local land departments (they can very easy give you a shot in the right direction)

For example if the plot is 150 Wah and the going rate per Wah is 55.000 for that area we are talking about a much higer price.

Just my 2 cents

Peter

Edited August 31, 2007 by Jomtien

[donx]

Guys,

i just stumbled upon this thread, iam not RE-agent and have never sold any property (only bought..) whatsover but just from the pic posted it seems that the hospital is in for the ground. Ground is very valuable in every city. To make suggestions to sell it at suggested price without knowing the size of the plot (and location) is to me stupid.

It is very easy to trace the value of ground, even on thaivisa there are links to the local land departments (they can very easy give you a shot in the right direction)

For example if the plot is 150 Wah and the going rate per Wah is 55.000 for that area we are talking about a much higer price.

Just my 2 cents

Peter

I agree with you. The hospital can't be interested in the building. They are interested in expanding their hospital on this land.