Interesting Things In Selling House

[rgs2001uk]

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).

Cant say I agree with the above logic.

It may well be the local buyers cant actually afford the property, it also could imply those with money to buy it arent interested in buying for a variety of reasons.

When it comes to property, it comes in cycles, buyers market or sellers market.

I dont see luxury car manufacturers lowering prices just because Somchai cant afford them.

[Mudcrab]

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.

All this on one Rai? Wow I can see why it is not selling.

[mccw]

My experience and observations is that in Thailand, Thai's, farangs and even the Banks, no one wants to take a loss. Most are cashed up or under no pressure to move and would rather sit tight for 5-10 years for the land values to rise or catch a sucker than accept true value. The only time people who get a sale are the developers or motivated sellers offering sensible market prices.

I sold my home in CM 2 years after I'd brought new at 1.6mill (120sqm, 3bed 3bath bungalow on 86sqw) for exactly 1.6mil. I'd added aircons and a western kitchen and a covered area on the back; but i didn't kid myself I should get exactly the price of every penny I put in to the place.

Can see so many places sit empty for years because the owners have built extra out houses and things and want exactly thier money back or even a profit. They will never sell and then the garden over grows and house starts to dirty and fall apart because they don't want to spend money on maintaining it. The banks books are full of such properties; but even the banks want 100% of the loan value which often equals 90% of the purchase price or more. Why would anyone buy a wreck when for same or less can buy a brand new one from a developmer? Maybe the reported health of Thai banks is not so great as supposed since they must be counting all those wrecked properties at 100% value? Does it matter though?

[mccw]

5mill for a 3bed on 123sqw in CR , there are variable obviously, but it sounds well over price to me. If you had a buyer at that price and threw it away because you wouldn't throw in the furniture I think you made a Big mistake.

[binjalin]

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.

advice:

• it's 'tradition' here to include all furniture and 'white goods'
  
• forget about 3% - pay it if it sells - put on price of house
  
• it's far easier to buy than sell here and expect no increase, generally, in value UNLESS you have renovated
  

[hhfarang]

My experience is the same. All agents, whether real or imagined (sister, aunt, uncle etc.) want a commission if they sell my home. A few ask 3% but most want 5%.

We have a pending sale at the moment where a real (foreign) agent brought the customer to our home and then the next week a Thai woman claiming to be an agent came to negotiate a deal for her client. It turns out that it is for the same buyer and the Thai woman is the sister of the wife. She is cutting out the foreign agent and keeping the (5%) commission in the family. Very unethical, but not illegal in Thailand as far as I can tell. She also negotiated with my wife to lower the price by about an additional 5% and yes, everyone wants to keep your furniture. Homes, even new ones are generally sold furnished here. I don't really understand that as I don't want someone's old used furniture and I would rather pick out my own new furniture, but things are done differently than in my home country, and expectations are different here.

And there is no way to really find the value of your home here. There's no one qualified to appraise it. I was a real estate agent in Florida as a backup profession and there were easy ways to determine the value of a home. Look at all the sales in the area for the last six months and subtract or add a specific value amount for things your home has or doesn't have compared to those sales. There was a specific formula that I was taught in real estate school in appraising a home.

It all seems more emotional here as that formula doesn't work. A home near us that is half the size and half the land recently sold for more than the deal we have in the works. It wasn't worth that amount but a foreign buyer with money showed up and liked what he saw and just bought it. Another home in a downtown location where I live just sold for 28m baht, and the people who bought it looked at our home and said they liked it much better. Mine is ten minutes from the main intersection downtown and the one they bought for nearly double the price of mine is 3 to 5 minutes from the main intersection. They were willing to pay nearly double for a home they liked less just to be 5 to 8 minutes closer to the center of town. Go figure.

Also, if there are new homes available in your area, Thais are hesitant to buy a used home. They all want a new one so you have to find a foreign buyer or suck it up and make a deal so good that the Thais will break their rule.

Edited January 21, 2013 by hhfarang

[taninthai]

5mill for a 3bed on 123sqw in CR , there are variable obviously, but it sounds well over price to me. If you had a buyer at that price and threw it away because you wouldn't throw in the furniture I think you made a Big mistake.

This will be one of them properties that sits on the Market for years and years or until another clueless gullible ferang turns up which sometimes doesn't take to long....lol

[binjalin]

5mill for a 3bed on 123sqw in CR , there are variable obviously, but it sounds well over price to me. If you had a buyer at that price and threw it away because you wouldn't throw in the furniture I think you made a Big mistake.

I must say I agree as here in CM 120 sqw would be around 2.5/3.5m ish 1 rai (400 sqw) around 6m