Got an appraisal from a bank... Any idea how accurate this is ?

[LarryBird]

Do they tend to undervalue? House is in Chiangmai if that helps.

[Pomthai]

Most appraisals are aimed at giving a valuation for a loan against the property, I don't know this for certain, but always assumed they'd be cautious and give an estimate slightly under market value just to protect their own interests.

[1FinickyOne]

If I were appraising for a bank in CM, and if you are talking about a house in a moo bahn, I would low ball the appraisal because I do not htink these houses are easy to sell. If not in a moo bahn, I think the value will depend greatly on the land. Houses genuinely depreciate in this climate -

There seems no solid bottom to the market.

[LarryBird]

Thanks guys! What's a good way to find the value? Just hang a sign on it and wait for calls?

[1FinickyOne]

The best way is to find out if, and for what price, things have been selling for in the area... this is not easy.

If you are selling - it seems to be quite a buyers market and I always wonder how anyone could determine a price to sell at. It seems people ask what they want and then let it sit on the market - some get lucky, some don't. Houses do depreciate, land appreciates - I would try and find new homes that are similar in your general area and then discount from there. Thai do not tend to like to buy 2nd hand properties.

I get the sense that the further out you are, the more difficult it might be to sell. There may be exceptions. Just try and do as much research in your area as you can - nothing better than being knowledgable.

Good luck.

Maybe it would not hurt to talk to a realtor... post some signs on bulletin boards - things like that.

[JMWPACIFIC]

Without a vibrant resale market, appraisers anywhere would tend to be conservative. Here, for sure.

[RBOP]

I had SCB do

Edited June 21, 2016 by RBOP

[RBOP]

I had SCB do appraisals for a condo I wanted to sell and a condo I wanted ro buy. I'd say they over valued the one I wanted to buy by 20% and under valued the one I wanted to sell by 35%. I ended up buying the over valued condo for 25% less than what SCB appraised and just held onto my other condo for 8 years, renovated and now priced 75% higher than 8 years ago. And yes, I was trying to get a loan using the old condo as collatoral to buy the new one whoch is why I think they overvalued and undervalued.

[dotpoom]

I suppose you could ask a Real Estate Agent to list it for you and ask him to value it for you as you are not sure.

[DTRACKER300]

Research recent sales to give you close ball park

[amykat]

Research recent sales to give you close ball park

Where do you do that???

[12DrinkMore]

I had SCB do appraisals for a condo I wanted to sell and a condo I wanted ro buy. I'd say they over valued the one I wanted to buy by 20% and under valued the one I wanted to sell by 35%. I ended up buying the over valued condo for 25% less than what SCB appraised and just held onto my other condo for 8 years, renovated and now priced 75% higher than 8 years ago. And yes, I was trying to get a loan using the old condo as collatoral to buy the new one whoch is why I think they overvalued and undervalued.

You can price it as high as you like, why not make it a round 100% gain or 200%, it gives a nice warm "wealthy" feeling?

The only property prices that count in Thailand are the ones that are actually paid. And if it is a Farang buyer, then he has paid too much.

[Sean87s]

Never understood all these crazy house prices i see on ads here on Thai Visa and other places. 10-20 million bht plus, what the hell is going on ? I can build a 150 sqm deluxe house with salt water swimming pool for 2.5 million baht all A material.

Is it the Land that is so expensive ? I would like to know.

[topt]

Never understood all these crazy house prices i see on ads here on Thai Visa and other places. 10-20 million bht plus, what the hell is going on ? I can build a 150 sqm deluxe house with salt water swimming pool for 2.5 million baht all A material.

Is it the Land that is so expensive ? I would like to know.

Some places yes.......

I know a place just been bought for a figure in between what you quoted above and it is now being gutted inside and out.

[SOTIRIOS]

...duhh....

...ask around....

...don't say you have a house for sale....

...go looking to buy a house in your neighborhood.....

...general rule for foreigners.....overpay.....then receive under value......don't you know by now....???

[shirtless]

There only worth what someone is willing to pay , put it on the market and see what offers come in if any.

[GOLDBUGGY]

Bank Appraisals are usually done by professional in two ways: By the Comparison Method and by Construction Replacement Cost Method. Both methods are usually within 10% of each other.

The Comparison Method is probably the most accurate. They find about 3 houses, as close to your house in size and nature, which were recently sold in your area, and add or subtract improvements to come up with a resale value. This is what most Real Estate Agents use to find a value for your place.

The other method of Construction Replacement Cost is usually only used by Professional Appraisers and Bank Appraisers. They take the current cost of constructing a new home like yours then deduct the depreciation by the number of years it is old. Since most Real Estate go up in prices as it gets older it seems that this method would be faulty. So they compensate this price increase to the land value going up in price and not the house. Which when you think about it this makes good sense. So they add the land value last and onto the Replacement Cost.

These methods are only Ball Park Estimates. Many things effect the price of a property which cannot be easily detected. Have a Motor Cycle Gang move in next door and even if they are great guys, try to see what your property is worth after that. No matter what your Appraisal says. Perhaps moving close to family is important to you so you are willing to pay more.

Personally I have never bought a property that was above the Bank Appraisal Price. If your is, then I would take a second look at buying it. Unless you plan on keeping it for many years, and you have a good reason to live exactly their, like being close to family.

[trogers]

I would put a condo up for offers just to check on its market value...