How To Value A Property

[JuniorExPat]

I have (okay, my wife has!) a 3 bedroomed house on 269 sq wah of land in a quiet location that is very convenient for access to the city of Chiang Mai. We have four children and two dogs and have outgrown the place so we're toying with the idea of looking for somewhere bigger but quite like the idea of dealing with it all ourselves and not involving agents.

A basic question I know but how do we go about working out a realistic asking price? I have a figure that I feel is sensible and my wife has a different and higher figure which I think is based more in sentimental attachment to the place than in economics - I hope to be shown the error of my thinking!

The house is a little over 3 years old (we bought it new), it is modern Thai style (ie single block walls, concrete platform, grey water drainage into the garden, Thai style indoor kitchen and tiled floors throughout) and has a garden that we created and have given care and attention to. In the garden there are 3 mango trees and 1 jack fruit which are all well established and producing plenty of fruit, the house is shaded on one side by mature palm 'bushes' and we laid lawn either side of the driveway and around the house, there is a carport next to the house. There are also jasmine bushes, and other shrubs also a well cared for spirit house at the driveway entrance with its own little shrub garden. Between the house and the carport is a small fenced in grass area which we use as a dog-free children's play area.

The location is very close to the river in a quiet Thai 'village' but is genuinely only 10-20 minutes drive, depending on traffic/time of day, from the 'old city'.

The water supply is from the local village bore and is incredibly cheap, ADSL is installed as is UBC and aircon in each of the 3 bedrooms. One of the bedrooms is en suite, there is one other bathroom and an outside toilet. The main living area is large, split level and completely open plan.

So, two questions on two fronts really!

- What's the sensible way to value the place? All advice will be really appreciated.

- Does it sound appealing to you? PM me if you would like more details, photos or want to view!

JxP

Mods: If this turns into an "Okay, now I know how much it's worth we're going to sell." thread then I promise to rewrite and place in classifieds!

Edited February 6, 2008 by JuniorExPat

[Phil Conners]

Most houses in Thailand are priced way too high, that's the main reason so few are selling now. Owners are dreaming that they will get what they could have gotten 2-3 years ago - or even what they though 2-3 years ago that they would get now

If you really want to know what you could get you probably should go around your area and check out what similar houses were actually sold for.

Edited February 6, 2008 by Phil Conners

[eljeque]

You speak highly of the home. If it is on 269 TW, then you have plenty of room to expand it. This way, you will not have the costs of selling it, or buying a new one, or moving, once again setting up a phone, internet, and cable/UBC.

Stay where you are and make the house bigger.

It is very inexpensive to do it in this country, and you can design it as you wish.

[lazeeboy]

a good idea of price is to go on line and look at estate agents in the area ,you can also get a quote from 1 or 2 its free...

[quiksilva]

All those posting to compare your house with others have described the best method.

However, be sure that you are comparing apples with apples. Be sure that they are in a similar location (same street if possible), similar size plot of land and similar construction. Try, if possible, to find out what they have been sold for, not what they are asking for.

The garden, nice though it may be, only adds to its marketability, not to value.

In the absence of comparable evidence of hose sales you must look for the next best thing and find out how much land sells for in the area. If this is unavailable I suggest you get on the treasury website and check the government's appraised values (not perfect but it will do in a pinch).

Then add the construction costs of the building and make an allowance for depreciation.

but don't listen to me I'm an agent

[JuniorExPat]

Most houses in Thailand are priced way too high, that's the main reason so few are selling now. Owners are dreaming that they will get what they could have gotten 2-3 years ago - or even what they though 2-3 years ago that they would get now

If you really want to know what you could get you probably should go around your area and check out what similar houses were actually sold for.

Thanks for responding Phil and I think that's a good method but how do you find out what place really change hands for, nobody seems to tell the truth on this subject!

JxP

[JuniorExPat]

You speak highly of the home. If it is on 269 TW, then you have plenty of room to expand it. This way, you will not have the costs of selling it, or buying a new one, or moving, once again setting up a phone, internet, and cable/UBC.

Stay where you are and make the house bigger.

It is very inexpensive to do it in this country, and you can design it as you wish.

A very sensible suggestion eljeque. Knowing the value of the place would help decide which route to follow.

JxP

[JuniorExPat]

a good idea of price is to go on line and look at estate agents in the area ,you can also get a quote from 1 or 2 its free...

I'm about to do that - I feel a bit cheeky though!

JxP

[JuniorExPat]

All those posting to compare your house with others have described the best method.

However, be sure that you are comparing apples with apples. Be sure that they are in a similar location (same street if possible), similar size plot of land and similar construction. Try, if possible, to find out what they have been sold for, not what they are asking for.

The garden, nice though it may be, only adds to its marketability, not to value.

In the absence of comparable evidence of hose sales you must look for the next best thing and find out how much land sells for in the area. If this is unavailable I suggest you get on the treasury website and check the government's appraised values (not perfect but it will do in a pinch).

Then add the construction costs of the building and make an allowance for depreciation.

but don't listen to me I'm an agent

Any chance of a site visit and valuation from you?

I'm going to find and check the treasury site, that sounds sensible data to have, thanks.

JxP

[Phil Conners]

Most houses in Thailand are priced way too high, that's the main reason so few are selling now. Owners are dreaming that they will get what they could have gotten 2-3 years ago - or even what they though 2-3 years ago that they would get now

If you really want to know what you could get you probably should go around your area and check out what similar houses were actually sold for.

Thanks for responding Phil and I think that's a good method but how do you find out what place really change hands for, nobody seems to tell the truth on this subject!

JxP

I don't know, perhaps ask both buyer and seller and settle for the average?