Interesting Things In Selling House

[kmrazek]

We have had our house up for sale for the past few months and have had a few interesting responses from people interested in buying.

One offer was for 1 million baht which does not even cover the cost of the land. (it was a serious offer too)

We had people that are selling their flooded property in Bangkok think that our price is too high because it is more than their house in Bk (do not realize that regular flooding drastically reduces value)

Have had many real estate companies call and say they have someone interested in buying but we have to pay them 5% commission. (turned down)

Have had couples come and view and like very much and are interested. Next day we get a call from someone representing this couple and tell us they want 5% commission (we found out later that the call was from the couples brother) and of course we turned them down.

Our house is 210 sq meters on 123 talang wah lot with JD Salt water swimming pool, western style built in furniture, large western style kitchen, 3 bedrooms, 3 bathrooms and we had 2 couples with no children come to see. They told us that the house was too small and that they wanted 5 bedrooms, 5 bathrooms and maid quarters (asked what they would pay for this and they said 5 million baht?????)

We have had taxi and tuc tuc drivers come buy and want 3 % commission if they bring someone to buy.

It has been very interested and somewhat fun but aggravating in trying to sell our house.

What have you experienced in selling property in the Rai?

[harrry]

As you have not sold it yet you cannot say that you are right about its value.

[arthurwait]

Just look at any estate agents listings a see all the houses that never sell hoping to get what they think it's worth.

Secondhand houses don't sell well in Thailand except in Bangkok. It's really just the value of the land( plus a little for the house) which is far highest in Bangkok, flood land will probably still be worth more. I don't know values of land in Chiang Rai, but I doubt in reality (not asking prices) it comes anywhere close to Bangkok. 123Tw isn't a lot.

Forget a value for the furniture / kitchen it's worthless in a house sale. The pool is an extra cost to the owner.

If you bought the house for a house building company forget getting anywhere near the price.

[kmrazek]

I am not too concerned about the price we are asking. Just wanted to post my experiences in trying to sell. As I said its been fun and somewhat aggravating. Houses are selling in this community development and near our asking price.

[pomchop]

Lots of scammers, schemers and druken dreamers seem to get involved in thai real estate...both as buyers who want something for nothing and sellers who seem to think their place is the Taj Mahal.

Overall most any real estate anywhere will sell if the price is right....too low and no seller in his right mind would take the offer...too high and no serious offers.

Everyone wants a "five million baht" house until it comes time to pay the money...then they seem to think it is only worth "two million".

As for all the commission hounds put most of them into the scammers and schemers category.

[WilliamCave]

If I remember correct my house when I sold it in Canada the company charged me a fee also I think it is similar in the USA also with realitors . The seller pays I do understand the price might be good but every person trying to get a deal. I sold my houses in bkk before I put up lots of signs . Good luck

[kmrazek]

Paying a commission to a true real estate company that actually does advertising, holds open house, deals with all the paperwork and legal aspects is OK by me. But when someone does nothing but drive someone (brother sister mother father) to see the house and wants to be paid 3 to 5% commission is something I will not do.

[DonaldBattles]

Most Thais do not want to buy a farang style house as it does not suit their culture. I have one friend who has been trying to sell his well built house for 3 years and not a single offer. The land seems to be worth what he is asking for the house and land. It is in a good location.

One persons dream house has nothing to do with another persons dream.

I believe it is better to think about the value of the land and then you can get over that for the house.

[kmrazek]

We have had 3 offers that were almost acceptable but all three wanted all of the furniture including dining, living, bedroom suites as well as TV's fridges etc. One of these offers they have left open to us in case we change our minds. I find that "farang style" homes have become acceptable to the younger generation and middle income people. The older high so so's generally want more along the Thai style with maids quarters etc.

[mcgriffith]

Moved to Real Estate forum, with live link remaining on Chiang Rai.

[brianmarinus]

About the commision-that is 100% normal here-3% if someone direct a buyer to you-and for me to see,for the person who wants to sell,it doesn't matter if it is a stranger or it is a brother to the buyer/as long as he sell what he wants to sell.

[PattayaPhom]

Here's an example when I sold my 3 bed villa close to the beach on almost a rai only 4,5 mil. Had a Danish couple look said it was expensive and would I accept 4 mil, they hed to sell their scrappy two up two down in the boonies first...... At and wanted 4,9 for that, some real plebs out ther

[chiangmaibruce]

Houses are selling in this community development and near our asking price.

Within 3-5% of your asking price? In Thailand but aggravated by the thought of paying a commission?

I get what you are saying but I think you are perhaps being a little stubborn and unrealistic. The commission practice is normal here, and really, what difference does it make who they are or what they do? Your main aim is to sell right?

To give the example of Australia, the agents typically do very little other than send out a broadcast email, answer their phone, and do some inspections. The seller pays for all marketing, plus you pay for the auction if you go that route. You can either get annoyed by the tyre-kickers and by the way the system works, or simply focus on getting your property sold and moving on.

Edited January 16, 2013 by chiangmaibruce

[simple1]

Houses are selling in this community development and near our asking price.

Within 3-5% of your asking price? In Thailand but aggravated by the thought of paying a commission?

I get what you are saying but I think you are perhaps being a little stubborn and unrealistic. The commission practice is normal here, and really, what difference does it make who they are or what they do? Your main aim is to sell right?

To give the example of Australia, the agents typically do very little other than send out a broadcast email, answer their phone, and do some inspections. The seller pays for all marketing, plus you pay for the auction if you go that route. You can either get annoyed by the tyre-kickers and by the way the system works, or simply focus on getting your property sold and moving on.

Correct, as well as any buyer with half a brain will ask, at a minimum, for the equivalent to an agents fee in price reduction for someone selling direct

[trogers]

Hope you are not one of those property owners who would rather turn down a tenant from an agent because you need to pay comission and prefer leaving the property vacant for 6 months...

[kmrazek]

I would not turn down a real estate agent if they had a buyer. What I have experienced so far is that the real estate company wants me to sign a commission document that basically says no matter who buys the house (their own client or someone on their own coming to the house) I would have to pay commission to the real estate company. This I would not do. If they bring someone who wants to buy I would consider paying a commission to them based only on that one customer.

With regards to the norm of paying anyone who brings a person to buy the house, a 3% rate on a 1 million baht sale is probably acceptable but when a property is 10 million baht, this means 300,000 baht which is more money that a Masters Degree teacher makes in a year. For a true buyer, I would have no problem negotiating a possible price reduction of a couple of % to finalize a sale. As per Troger comment, I would never leave the property vacant and am living here until the house is sold.

[USNret]

We have had 3 offers that were almost acceptable but all three wanted all of the furniture including dining, living, bedroom suites as well as TV's fridges etc. One of these offers they have left open to us in case we change our minds.

With regards to the norm of paying anyone who brings a person to buy the house, a 3% rate on a 1 million baht sale is probably acceptable but when a property is 10 million baht, this means 300,000 baht which is more money that a Masters Degree teacher makes in a year.

I'm a little confused by exactly what you're trying to do. Are you trying to sell a house, or would you rather just TALK about selling your house?

If you want to sell, you need to fully embrace the Fine Art of Negotiating. You give up a little; they give up a little and in the end, everyone gets a deal that they are happy with.

Are you so certain that you have "precisely" fixed the value of the house at the exact, perfect market value that you are unwilling to waver, even if it means losing a sale? That's really how you come across.

Whatever price you are asking, if someone came up to you and said: "Give me a 3% discount and I'll buy your house" would you not take that deal? If you won't, then I suggest that you are simply here to talk about selling your house.

The one offer where they would meet your price but they want the furniture, why not go for it? The house is sold for full price, and with the proceeds you can buy a whole new suite of furniture for your new home. I've done something similar to this 3 times and it works out great. Or, if there are a few pieces of furniture that you simply cannot part with, then make a counter-offer excluding those pieces and you probably got yourself a deal. Don't forget, this will save you the expense of moving & possibly storing used & depreciating furniture, avoid extra damage during the move, and you can try to get a deal on existing furniture when you buy your next home.

With regards to paying a 3% commission to Johnny-on-the-street for bringing a buyer, why not? The agreement is, they bring you a FULL PRICE offer & sure, you'll cough up the 3%. Again, this is win-win-win, with you getting 97% of your asking price. The more of the deals you make like this, pretty soon you have the whole village looking for a buyer for you. If they bring you an offer somewhat less than full price, that's still not so bad & you can pay them maybe a 1% commission just to be a nice guy.

Loosen up your purse strings a bit! you're not married to this home.

[kmrazek]

My reason for posting is to find out others experience in selling property and what they did to either accomadate the Thai way or how they dealt with it. Its interesting to compare experiences both good and bad.

As per previous commentor, if someone paid me full price I would be happy to provide a 3% commission but what I have experienced is that after we had negotiated a possible sale price then someone from their family asked for an additional 3% for commission.

[TommoPhysicist]

As you haven't told us your asking price, I'm guessing the silliness is due to your asking way too much.

My experiences as a potential buyer.

A brand new 3 bed 3 bath bungalow in CM would cost about 2M.

A slightly older 4 bed 2 bath house in CM is also about 2M (with all furniture).

I would expect CR to be cheaper.

Swimming pool is a waste of space for most people and would need to be filled in, I wouldn't want it.

Loads of people advertising houses as 3 bed, when it's really 2 bed + dining room, they just waste my time.

Edited January 16, 2013 by TommoPhysicist

[davejones]

Lots of scammers, schemers and druken dreamers seem to get involved in thai real estate...both as buyers who want something for nothing and sellers who seem to think their place is the Taj Mahal.

Overall most any real estate anywhere will sell if the price is right....too low and no seller in his right mind would take the offer...too high and no serious offers.

Everyone wants a "five million baht" house until it comes time to pay the money...then they seem to think it is only worth "two million".

As for all the commission hounds put most of them into the scammers and schemers category.

I don't see how asking for commission for finding a buyer makes you a scammer. Tuk tuk drivers meet a lot of people, and if they can find a buyer, then they deserve the commission. It can hardly be a scam because they don't get the money unless they find a buyer. I'd happily pay a tuk tuk driver 3% commission if he found a buyer for a house I was selling. I really can't see how you think that is wrong.

Of course it was scam that the brother of an interested couple wanted commission.

[Rancid]

I had a 2nd hand house on the market for 12 months and no takers, did an upgrade on it for 30K, it sold a week later at 3.7m. OK maybe coincidence but probably about presentation, I always knew those issues were not quite right but didn't want to spend to sort out. Plus the house did have appealing features anyway, just took away the couple of warts.

[klikster]

As you have not sold it yet you cannot say that you are right about its value.

Sure he can. The value to the owner is just as real as the value to a prospective buyer.

[klikster]

Seller should consider listing at ddproperty.com .. it's free.

[pomchop]

Lots of scammers, schemers and druken dreamers seem to get involved in thai real estate...both as buyers who want something for nothing and sellers who seem to think their place is the Taj Mahal.

Overall most any real estate anywhere will sell if the price is right....too low and no seller in his right mind would take the offer...too high and no serious offers.

Everyone wants a "five million baht" house until it comes time to pay the money...then they seem to think it is only worth "two million".

As for all the commission hounds put most of them into the scammers and schemers category.

I don't see how asking for commission for finding a buyer makes you a scammer. Tuk tuk drivers meet a lot of people, and if they can find a buyer, then they deserve the commission. It can hardly be a scam because they don't get the money unless they find a buyer. I'd happily pay a tuk tuk driver 3% commission if he found a buyer for a house I was selling. I really can't see how you think that is wrong.

Of course it was scam that the brother of an interested couple wanted commission.

The scammers are the ones who seem to appear after the fact to try and demand a commission....if you want a commission and have a legitimate buyer then obviously that needs to be brought to light and agreed upon BEFORE a sale.

[USNret]

I had a 2nd hand house on the market for 12 months and no takers, did an upgrade on it for 30K, it sold a week later at 3.7m. OK maybe coincidence but probably about presentation, I always knew those issues were not quite right but didn't want to spend to sort out. Plus the house did have appealing features anyway, just took away the couple of warts.

Just curious, what upgrades did you do for 30k? Sometimes a little presentation or a bit of paint goes a long way.

[USNret]

As you have not sold it yet you cannot say that you are right about its value.

Sure he can. The value to the owner is just as real as the value to a prospective buyer.

Perhaps that is true for "value" in a theoretical sense. Market value, on the other hand, is determined by buyers. If you have something for sale and no takers, then you are asking above market value (assuming you are doing any kind of effective marketing).

[Big Gary]

As you have not sold it yet you cannot say that you are right about its value.

Sure he can. The value to the owner is just as real as the value to a prospective buyer.

Perhaps that is true for "value" in a theoretical sense. Market value, on the other hand, is determined by buyers. If you have something for sale and no takers, then you are asking above market value (assuming you are doing any kind of effective marketing).

I have had my houses up for sale for over 6 months now. We have had many enquireries with a few genuine ones. Its a 1 rai block and have a 4 bedroom house,2 bedroom house,1 bedroom granny flat,double lockable garage,double car port,huge outside bar and numerous sheds. All knockbacks have been because they say that there is no room left for a garden?????????? I jokingly said to my wife that we should knock down the granny flat and the double car port and maybe it will sell as that will give them space to plant their flowers or whatever. She said wait 6 months more and we will start to demolish things and maybe only leave the newer 4 bedroom home. I reckon that might be the path to go and I still say I will get our asking price still.

[tangaroa67]

Where is the house?

[Big Gary]

Where is the house?

If you mean my houses they are in Ban Hongor on the road to Dons Cafe.

[manarak]

LOL @OP: nicely disguised classified advert

regarding turning down offers because of commission:

I never do that.

Instead I say how much has to go into my pocket. The agents are then free to set a price to their liking and take as much commission as they want, it's not my problem.

So if someone wants 5% off the deal, it's not a problem, I just tell him to up the price by 5% for his clients.