Selling land for what the bank will appraise it at. Sound fair price for land?

[sidjameson]

Friend has inherited land in prachuap khiri khan district. Few hundred km south of BK. 5km from the town.

Factory next door to the land wants to buy the land. Said to her that she should let the bank appraise the land and they will pay whatever the bank says its worth.

Sound reasonable?

[TheConsultant]

No Way! Not reasonable!

The Bank appraisal value is used almost only for Loan Application and therefore the appraisal value will be low.

You should use a private appraisal company to get the real value of your land as the value of the land is also based on 'potential' of the land, surrounding, development plans by the government or local authorities etc.

[Sharp]

Absolutely No Way!!

Take points from The Consultant on this.

[deepcell]

Banks no please! Find a real estate company or private appraisal company, and have sure the company you choose has no contact/knowledge with the factory.

[janpharma]

I would advise you to check this out at the Land and Transport Department in your province; they will give you a quit accurate estimate.

[sometimewoodworker]

I would advise you to check this out at the Land and Transport Department in your province; they will give you a quit accurate estimate.

The land office will only have the value that is declared to them. As tax is payable on the value of land transfers the values they have are very much lower than the land is actually selling for, so that is a bad idea.

In the OPs case the factory wants the land so that immediately increases it value over other land being sold in the area

[mango66]

No Way! Not reasonable!

The Bank appraisal value is used almost only for Loan Application and therefore the appraisal value will be low.

You should use a private appraisal company to get the real value of your land as the value of the land is also based on 'potential' of the land, surrounding, development plans by the government or local authorities etc.

but look on the price of a recognised aprisal company ;

Usually you will find trustworths only in BKK,

and we paid 100.000,- ok, it was 120 rai !!

but prices were really correct to market prices

( which we have suggested, as we paid them !! );

[Beetlejuice]

Tell her to take the money and run.

If there is already a factory next door and they are looking to expand, then the said land will end up being right at the centre of an industrial complex, a highly undesirable plot unfit for residential occupation that no one will want to buy except for commercial purposes.

[rayongchelsea]

^^^^ but if that is the only land they can expand into..it is then very desirable..

[Beetlejuice]

^^^^ but if that is the only land they can expand into..it is then very desirable..

No, because it means this is an industrial area. They will just build around the land that under Thai law can be erected only one metre from the boundaries of the said land.

No one is going to want to set up home next to a whacking great factory, probably with heavy trucks traveling in and out the facility and with the prospects of other industrial units being built close by.

It`s really up to the person`s own discretion what she decides, but I know what I would do in that situation and considering the land was inherited, the woman is in a no lose situation. One fact I can assure you of, that the said land will never be a wise investment. And as I said; take the money and run.

[rawhod]

I would advise you to check this out at the Land and Transport Department in your province; they will give you a quit accurate estimate.

The land office will only have the value that is declared to them. As tax is payable on the value of land transfers the values they have are very much lower than the land is actually selling for, so that is a bad idea.

Not necessarily so...

We bought land at 18,000 baht/talang wah. The Land Office Appraised value was 23,000 baht.

[Crossy]

A few differences of opinion here, but the underlying theme is don't take the bank's appraisal.

Get numbers from the land office, other nearby plots sold recently etc etc, add some negotiating space (it's very hard to negotiate up) then talk to the factory.

Know what you'll take (which could be the banks number anyway if you just want to offload) and start negotiating.