Deposit Query

[chiang mai]

When buying a house for cash, what is the usual amount of deposit that a buyer pays the seller to secure the deal but in advance of completing it?

In this example the seller will remain in the property for three more months whilst getting his affairs in order and the buyer is happy to wait, neither party wants to loose the sale/purchase hence the need for a contract and the deposit.

The buyer thinks that 1% of the purchase price (5 million) should be adequate, the seller wants 12% so naturally distrust between the two has arisen.

Both parties are farangs with Thai wives.

[JaiLai]

The amount of time wasters there are in this country when it comes to property i'd say the seller has the right to ask for as much as 20% to ensure it's worth his while if the buyer backs out.

[beachproperty]

Purchase deposit amounts are negotiable, as are most things in a real estate contract. You are wise to have a contract drawn up. As for seller wanting 12%....personally I think he should rethink his strategy as "easy to buy property in Thailand but NOT so easy to sell!" ...You are being reasonable in offering 1% (60,000 baht) and giving him 3 months to get his affairs in order.

If he balks ...I say walk ....and when he finds out he can't sell his property as easily as he thought ...Offer him less!

In the meantime for 5 million Baht in Chiang Mai (assuming that is where you are buying by your Avatar Name) There are Plenty of other NICE properties to buy.

I'd be looking myself if I were you.

Edited July 3, 2014 by beachproperty

[KittenKong]

The amount of time wasters there are in this country when it comes to property i'd say the seller has the right to ask for as much as 20% to ensure it's worth his while if the buyer backs out.

The amount of dishonest vendors and agents there are in this country when it comes to property I'd say never pay a deposit at all. Just pay the full price when the transfer takes place.

[KittenKong]

... the seller wants 12% ....

Nice to know that some people can still dream.

How long has the place been up for sale? How many buyers have expressed any interest in that time?

If the answers are "more than two months" and "less than 5" then maybe the vendor should take what he is given and count himself lucky to find a buyer at all. Thailand has more property for sale than you can shake a stick at.

[chiang mai]

The place has been on the market for sixteen months, I improved my initial offer from 1% up to 2% on the advice of my lawyer, he said no so I walked, sad really but plenty more fish in the sea.

But thanks for the feedback, I just wanted to check whether I was out of line with convention or the seller was and it seems to be the latter - my lawyer thinks he needs the deposit money for his next house, either that or he was planning on doing a runner with it, who knows, we never got a chance to check the chanotte for liens/mortgages/leases/ownership because he wanted the deposit first, smells distinctly fish like to me.

[KittenKong]

.... we never got a chance to check the chanotte for liens/mortgages/leases/ownership because he wanted the deposit first....

Crikey!

I wouldn't even hand over 1B in those circumstances.

[chiang mai]

.... we never got a chance to check the chanotte for liens/mortgages/leases/ownership because he wanted the deposit first....

Crikey!

I wouldn't even hand over 1B in those circumstances.

Likewise, but it can be fun to play the game and try to figure out what the angle is and where everyone is coming from, there are additional layers to the story in terms of unverifiable self promotion and status of the seller that I wont go into, quite credible if taken in isolation but as those components come together the jigsaw takes shape.

Buyer beware remains the key message, regardless of the facade.

[JeremyBowskill]

Why not buy land and build it yourself? That way you get exactly what you want and save 20-30% overall.

[beachproperty]

Why not buy land and build it yourself? That way you get exactly what you want and save 20-30% overall.

Although I have done the same myself (bought land and built) .... maybe the OP , and/or a lot of people in general, don't want the hassle of dealing with crooked, shady, lying contractors! Maybe the OP does not have the building knowledge to accurately supervise the contractor and workers? Maybe the OP doesn't have the time (or want to wait) it takes to build a new build?

AND I can tell you from my experience that the savings are GREATER than 20-30% if you find the right land and contractor (not an easy task ....but one I think I have accomplished as presently building a 400 sq meter complex now ...western standards with lots of upgrades to the standard thai build for 10k/meter)...a savings of 20% hardly makes it worth the hassle, aggravation and time.

I believe the OP was more interested in answers regarding a deposit.....and NOT a new build!

Edited July 3, 2014 by beachproperty

[metisdead]

An inflammatory post has been removed.

[chiang mai]

Indeed my focus is exclusively on the deposit aspect but thanks for your comment regardless.

[JeremyBowskill]

Why not buy land and build it yourself? That way you get exactly what you want and save 20-30% overall.

Although I have done the same myself (bought land and built) .... maybe the OP , and/or a lot of people in general, don't want the hassle of dealing with crooked, shady, lying contractors! Maybe the OP does not have the building knowledge to accurately supervise the contractor and workers? Maybe the OP doesn't have the time (or want to wait) it takes to build a new build?

AND I can tell you from my experience that the savings are GREATER than 20-30% if you find the right land and contractor (not an easy task ....but one I think I have accomplished as presently building a 400 sq meter complex now ...western standards with lots of upgrades to the standard thai build for 10k/meter)...a savings of 20% hardly makes it worth the hassle, aggravation and time.

I believe the OP was more interested in answers regarding a deposit.....and NOT a new build!

Yup you are right, why would anyone want to save 30%. How stupid of me.

[chiang mai]

Why not buy land and build it yourself? That way you get exactly what you want and save 20-30% overall.

Although I have done the same myself (bought land and built) .... maybe the OP , and/or a lot of people in general, don't want the hassle of dealing with crooked, shady, lying contractors! Maybe the OP does not have the building knowledge to accurately supervise the contractor and workers? Maybe the OP doesn't have the time (or want to wait) it takes to build a new build?

AND I can tell you from my experience that the savings are GREATER than 20-30% if you find the right land and contractor (not an easy task ....but one I think I have accomplished as presently building a 400 sq meter complex now ...western standards with lots of upgrades to the standard thai build for 10k/meter)...a savings of 20% hardly makes it worth the hassle, aggravation and time.

I believe the OP was more interested in answers regarding a deposit.....and NOT a new build!

Yup you are right, why would anyone want to save 30%. How stupid of me.

Jeremy I'm not interested in self build, I have neither the skills, time, energy nor desire to get involved, no matter how much money it might save, saving money is not the issue, I am solely interested in the deposit aspect.

[shirtless]

For 5 Million you better be getting a fantastic home, Keep looking as this deal stinks to high heaven.

[beachproperty]

Why not buy land and build it yourself? That way you get exactly what you want and save 20-30% overall.

Although I have done the same myself (bought land and built) .... maybe the OP , and/or a lot of people in general, don't want the hassle of dealing with crooked, shady, lying contractors! Maybe the OP does not have the building knowledge to accurately supervise the contractor and workers? Maybe the OP doesn't have the time (or want to wait) it takes to build a new build?

AND I can tell you from my experience that the savings are GREATER than 20-30% if you find the right land and contractor (not an easy task ....but one I think I have accomplished as presently building a 400 sq meter complex now ...western standards with lots of upgrades to the standard thai build for 10k/meter)...a savings of 20% hardly makes it worth the hassle, aggravation and time.

I believe the OP was more interested in answers regarding a deposit.....and NOT a new build!

Yup you are right, why would anyone want to save 30%. How stupid of me.

Mr Bowskill,

You obviously do not live in Thailand ....for if you did, you would realize the pitfalls I have pointed out in building a home in Thailand would likely NOT save you 30% BUT cost you more!

Now your statement of build a home and save 30% is rather simplistic.....care to elaborate!

There are so many variables involved in building a home (and therefore many downside risks....AND even more so in Thailand!)

So your statement "Why would anyone want to save 30%" is rather naive.....OF COURSE ...we all want to save money...but the reality (which by you sarcasm is beyond you) is that here in Thailand (or anywhere for that matter) unless you know what you're doing you're more likely to spend MORE and NOT save.

I have been successful at this for TWO basic reasons.....Have actual experience building homes and have a contractor whom I can trust (the second one probably being the most important!)

Again...OP's query is regarding what an appropriate deposit should be in the situation he described ....and I believe he has resolved his situation....Happy to hear! and Good luck OP in the future...whatever avenue you take!

[chiang mai]

For 5 Million you better be getting a fantastic home, Keep looking as this deal stinks to high heaven.

If you were to read the thread you'd realize that the deal collapsed because of the deposit issue!

[JeremyBowskill]

Why not buy land and build it yourself? That way you get exactly what you want and save 20-30% overall.

Although I have done the same myself (bought land and built) .... maybe the OP , and/or a lot of people in general, don't want the hassle of dealing with crooked, shady, lying contractors! Maybe the OP does not have the building knowledge to accurately supervise the contractor and workers? Maybe the OP doesn't have the time (or want to wait) it takes to build a new build?

AND I can tell you from my experience that the savings are GREATER than 20-30% if you find the right land and contractor (not an easy task ....but one I think I have accomplished as presently building a 400 sq meter complex now ...western standards with lots of upgrades to the standard thai build for 10k/meter)...a savings of 20% hardly makes it worth the hassle, aggravation and time.

I believe the OP was more interested in answers regarding a deposit.....and NOT a new build!

Yup you are right, why would anyone want to save 30%. How stupid of me.

Mr Bowskill,

You obviously do not live in Thailand ....for if you did, you would realize the pitfalls I have pointed out in building a home in Thailand would likely NOT save you 30% BUT cost you more!

Now your statement of build a home and save 30% is rather simplistic.....care to elaborate!

There are so many variables involved in building a home (and therefore many downside risks....AND even more so in Thailand!)

So your statement "Why would anyone want to save 30%" is rather naive.....OF COURSE ...we all want to save money...but the reality (which by you sarcasm is beyond you) is that here in Thailand (or anywhere for that matter) unless you know what you're doing you're more likely to spend MORE and NOT save.

I have been successful at this for TWO basic reasons.....Have actual experience building homes and have a contractor whom I can trust (the second one probably being the most important!)

Again...OP's query is regarding what an appropriate deposit should be in the situation he described ....and I believe he has resolved his situation....Happy to hear! and Good luck OP in the future...whatever avenue you take!

Lived in Thailand (Chiang Mai to be exact) for 11 years, done this myself on more than 1 occasion and have made such savings. Of course getting a significant price reduction is bound to create headaches, but that's what essentially you are being paid for. If this doesn't appeal to OP then fine, if it did however, I would have passed on contacts FOC to help take out some of the headaches.