May 17th, 2010
Here are some useful tips when wishing to sell your property or land:
Going with the broker that offers a smaller fee for a successful sale is false economy! We all have costs and how can a broker successfully market your property if he makes a very small margin? This means they are not spending money on marketing because they do not have the budget!
Establishing a Price
Consider what you paid for the property, how long you have lived there, local comparable property prices, any improvements added, present condition of the property, ask about the current property climate, and arm yourself with the facts. By not establishing a realistic price from the beginning, many home sellers end up costing themselves hundreds of thousands of baht.
Do not over price the property thinking you can wait and are not in a hurry to sell as this has the opposite effect. The buyer sees it has been on the market for six months and asks what’s wrong with it?!
The value of a home is determined by supply and demand. If there are a lot of sellers and few buyers, prices tend to go down and homes take longer to sell. This is referred to as a “Buyers market”. But when the opposite is true, and there are many buyers but few homes for sale, prices will rise and homes will sell very quickly – this is known as a “Seller’s market.” So how do you know which market you are currently in? It is best to ask the knowledge of a professional. We can provide a valuation appraisal If you list with us we provide this as part of our service charge. We will then determine which type of market you are closer to; then study your location to compare your home to others based on style, size, number of bedrooms, baths, garage, pool, view, and plot size.
Please note that Thailand is a green market and the majority of properties sold are new projects off plan which give investment returns of 30-40% or more by the time they are completed in one year or so, as well as rental returns when unoccupied. Therefore to sell a property which is not new is more difficult as the return is unlikely to be similar and the main attractions have to be price, location, quality and condition.
Allowing the broker to erect a sign is very important as our brand name and reputation may draw in the passer by as they understand we are a professional company and can assist with the buying process and represent their interests. It also avoids visits without appointments and time wasters as we are the first point of contact and will vet them first and arrange an appropriate time convenient to you. Putting up your own sign is counter productive and not permitted for an exclusive listing.
Qualifying the buyer
A major part of a brokers job is ensuring that you have a genuine buyer, and that they are not time wasters and actually have the funds available. Many times private sales end in disaster and wasted effort due to misunderstanding between the parties and the buyers’ ignorance of the buying process. This is where the broker earns their fee.
If you are not exclusively listing with a broker then ensuring that other brokers offer the same price is important. Otherwise we and you can look as if we are cheating the buyer.
The key to remember here is not to get wrapped up in any games. If you keep your goals in focus at all times, you will be better able to respond to offers. You will have three choices when an offer comes in. You can accept the offer, reject the offer or make a counter offer. In the end it is what the buyer will pay regardless of your price.
In Thailand it is customary for the seller and buyer to share the transfer costs 50/50 but this is up to you.
Let the buyer and broker know at the beginning where and how you wish to be paid, as many buyers wish to receive payment offshore or outside Thailand and the buyer needs to know up front to avoid bringing in funds and unnecessary bank and interest charges.
Ensure that there are no complications and that the property is free to be sold with no encumbrances or that the seller is the name on the back of the title deed (or company), if not we need to know immediately as we cannot sell the property if there are any such irregularities.
To set your property aside from others, it is a good idea to offer some enticement such as a free washing machine, dishwasher, furniture, maid for a period etc.. this can make the difference on the buyers decision.
When the buyer makes an offer acceptable to the seller, usually a non refundable reservation deposit is taken (min 100,000 baht), or as required by the seller. This is usually held by the broker or lawyer in an escrow account until such time as contracts are exchanged. The reservation agreement allows the buyer 21 to 30 days to review and agree the contracts.
From offer to close
It is normal once a reservation deposit has been secured for the process to take one month or more to final payment. The buyer first needs a lawyer to do due diligence and for you the buyer to provide a “sale contract” from your lawyer, this has to be reviewed and agreed and any changes made and agreed between the parties. Once this is completed and contracts signed, a visit to the land office to exchange title deed and buyer’s final payment is the final stage!
Please send us any questions you may have regarding selling your property.