Setting a property sales price

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StevePIraq
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Setting a property sales price

Post by StevePIraq » Thu Dec 29, 2016 10:50 am

How on earth does one set a price for your home in Hua Hin?

I know exactly what I paid for the property, what I paid for all furniture and fittings etc. this is on a 100% complete development not one of these developments where only a few plots have been sold and the rest is left as a jungle totally destroying the resale price of those homes. Some properties on my development have sold for a good price others have been given away, presumably as the owner had to sell at any cost.

I understand the market here is flooded with properties with more being built ever day.

When asking anywhere near the true value people turn and walk away or offer a ridiculously low value.
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Re: Setting a sales price

Post by caller » Thu Dec 29, 2016 11:15 am

StevePIraq wrote:When asking anywhere near the true value people turn and walk away or offer a ridiculously low value.
But surely a truism is that a place is only worth what someone is prepared to pay for it?

Where my new place is, on a finished and what seems to me to be a well run and managed development, I paid what I regard as a fair price for mine, although I still made a half hearted attempt to secure a discount - that goes with the territory, doesn't it?

I knew I would have to renovate and that's in process, but not to the extent that it would mean I would have paid the 1.1m extra the empty place opposite is on sale for, with one fewer bedroom and a smaller plot.

So that truism, in what must be a buyer's market, is surely more relevant here than in many other places?
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Re: Setting a sales price

Post by StevePIraq » Thu Dec 29, 2016 11:32 am

I do understand everything is only worth what someone is prepared to pay. If you know you paid a total of say 8m do you ask for 5m?
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Re: Setting a property sales price

Post by centermid7 » Thu Dec 29, 2016 11:59 am

^ what you paid in the past has no bearing on what a buyer today might be willing to pay. Indeed, in your scenario 5M might be too much. 4M might be too much as well.

Real estate here makes no sense to me and I would not wanna own any and don't.

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Re: Setting a sales price

Post by Bluesky » Thu Dec 29, 2016 12:13 pm

I would think there would be quite a few expats that face the same dilemma. The market will ultimately determine what the property is worth and certainly it is not as easy to gauge the value of a property here easily as it is in Oz.(Generally 3 or 4 recent sales of a dwelling of similar size and features the same area) You can obviously contact a few agents around town to get some idea however there is no guarantee. I can only suggest you get the maximum amount of exposure to the marketplace, if your in no hurry, start your price on the higher end of your expectations and reduce it over time to a point where buyer interest is forthcoming. From my own observations I have seen properties here advertised and have not moved over the past 2 years, particularly those out of town a bit and have high moo barn annual sinking funds. If you are targeting a foreign buyers get a decent marketing plan in place. It may be worthwhile placing advertisements and pictures in publications and social media where foreign buyer may be looking. If you are looking to use an agent, choose wisely and carefully and be mindful of locking yourself into something you may regret! If you wish to move the property quickly you will be stuck with the what buyers with financial means are in the market at the time.
I do wish you success with the sale process.

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Re: Setting a property sales price

Post by StevePIraq » Thu Dec 29, 2016 12:17 pm

I totally agree but I want to sell, no one wants to make an offer until I give them my price. A good option would be the introduction of an auction system with a reserve price, but this is not implemented in Thailand. Even if one approaches an agent all they say is how much do you want for the property, they do not even give an appraisal and to date none of the top 4 I have approached have even been to see the property, they asked me to provide photos and a write up so they could put on their web site.

We started the process 3 years ago then took it off the market, we are now trying again but it seems nothing has changed.
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Re: Setting a property sales price

Post by Big Boy » Thu Dec 29, 2016 12:56 pm

When I sold up before I moved here from the UK, I had several estate agents value my property. Each of them gave me a range of values. Top end based on what similar properties had sold for over the last five years, and the lower end based on desire to sell. We started just above mid-range, but as time drew short, switched to just below mid-range.

So the problem doesn't just lay here in Thailand.
A good option would be the introduction of an auction system with a reserve price
Are you sure such an option doesn't exist? I'm sure we had a guy on here a few years back trying to bump up interest in the auction of his property.

I'll have a look for you, but not really sure what to put in the search parameters.
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Re: Setting a property sales price

Post by Big Boy » Thu Dec 29, 2016 1:05 pm

There's a thread about somebody who bought a property in an auction viewtopic.php?f=20&t=29968&p=385536

This one also mentions selling property (after spouse's death) by auction viewtopic.php?f=20&t=23699&p=307712

But this is the one I was thinking of :D viewtopic.php?f=20&t=18119
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Re: Setting a property sales price

Post by jingjoe » Thu Dec 29, 2016 1:24 pm

get the realtor to ask the potential buyer what they liked and disliked about the property, and what price they think it should be.
Also if you have lived in the house for say 5years, you can work out how much rent you have saved and that could be discounted off your asking price as well... 5years at 20000 a month x 12 = 1 200 000bht, gives you a bit of flexibility on your return
this is the first year i have seen dramatic price cuts in housing prices, before sellers were fixed on getting their money back, now they are starting to meet the market. houses in my estate sat on the market for years at 3500 000bhy are now been sold for 2 500 000 to 3000 000bht

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Re: Setting a property sales price

Post by StevePIraq » Thu Dec 29, 2016 3:25 pm

It's exactly what I have always been saying that this market is not like western property markets where one expects the property to appreciate, here it is the other way around.
In the time we previously had the property on the market not one realtor even came to see the property let alone bring a potential buyer, the only ones we had visit were people who saw our own signs and called to discuss.

Today I spent around 2 hours visiting different agents, all said the same, provide a write and photos and we will put on our web site. I asked 3 how many months is the average time you have a property on your books, they had no idea, one even said why does it matter. I doubt Tesco Lotus would keep fish on their shelves for 3 years if they were not selling.
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Re: Setting a property sales price

Post by magnum » Thu Dec 29, 2016 5:06 pm

I sold my place earlier in year bought in 2005 exchange rate was about 74 thb to the pound,sold at 52thb to pound so could discount a fair bit to come out with same money.Had 11 years of free hols can,t complain.At today's rate if your from uk your on a roll.
I used well known world wide agent who came to house took all pictures and did all the work sold within 4 week.

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Re: Setting a property sales price

Post by jandal33 » Fri Dec 30, 2016 6:50 am

I think selling a property would be the same as everywhere else. That is sell the features, ie: position, views, garden, deck is furniture included. proximity to transport, entertainment. Services. Research the local area for recent sales prices. And make your property stand out from the rest.
Also research international web sites and advertise with them. Sell it yourself if your confident or have a trusted hard working agent with a proven sales history.
I have bought and sold 6 houses in Australia and this is the formula I have used.
Wishing you good luck and a quick sale

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Re: Setting a property sales price

Post by StevePIraq » Fri Dec 30, 2016 11:07 am

I also bought and sold 3 properties in Australia, easiest place in the world to do it along with South Africa who have the same process.

My point here was not to push a sale it was how to work out a realistic price. I also do not consider discounting the years lived in from the selling price.
In my development two similar properties have recently been sold after 2+ years on the market, one went for 4.2m the other 7.9m no difference at all in properties except furniture and garden. The one for 7.9 just had the luck to have the right buyer come along.

I now have some options and will take them up in the New Year, I really appreciate the input from everyone.
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Re: Setting a property sales price

Post by dundrillin » Fri Dec 30, 2016 6:55 pm

As mentioned above HuaHin estate agents have no great enthusiasm to market resale properties, this surely opens an opportunity for someone to specialise in this field.

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Re: Setting a property sales price

Post by hhfarang » Fri Dec 30, 2016 11:25 pm

It's exactly what I have always been saying that this market is not like western property markets where one expects the property to appreciate, here it is the other way around.
Wow, that's sad to hear. We sold our home there about 3 years ago and exactly doubled our money. It took 5 years to sell but we expected that because of the high price range it was in. I know of another expat there that built a home in town for around 8 million and sold it for 28 million several years later. It also took a few years to sell but but he made a 250% profit. I guess it's a different market now...
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