Setting a property sales price

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musungu
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Re: Setting a property sales price

Post by musungu » Tue Jan 03, 2017 7:25 pm

To answer the OP's question certainly do not ask a 'so called property agent' in Hua Hin.
To my knowledge there is only one with Uk approved credentials as a qualified surveyor and or valuer. The rest are salesmen looking for a quick 5% commission, they are unqualified and hope ignorant buyers will fall for their higher % deals with developers
AVOID and look around yourself.
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Re: Setting a property sales price

Post by Big Boy » Tue Jan 03, 2017 7:27 pm

When my daughter was looking to buy, she contacted several (Thai) agencies who didn't even know they had the advertised properties for sale on their site. They said they could take her to look at other properties though. No thank you - con artists.
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Re: Setting a property sales price

Post by jingjoe » Tue Jan 03, 2017 8:44 pm

to be fair to some agents, some sellers expect to sell at a price they paid for their house a few years back and just wont budge even when it is quite clear that there are very few buyers, and they can buy similar houses to theirs, even in the same village at a substantial discount and still won't reduce their price and blame it on the agent.
the seller has to be motivated to sell at a price the market is dictating to let the agent do his job.

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Re: Setting a property sales price

Post by jmhogan » Tue Jan 03, 2017 9:04 pm

I feel the need to offer my 2 cents. Real Estate is very different here then most of our home countries. I am about to join a firm here and I have 20 years LICENSED EXPERIENCE back home.

You are right there is no experience necessary to become a "Consultant" here. There is no Real Estate Board there is no ethics or insurance umbrella you are a part of. It is not an organized association as you see in the USA Canada and I am guessing elsewhere.

The reason most people don't know what is for sale and sold is that they do what they call OPEN LISTINGS. A seller can list there home with anyone and everyone at the same time. Most countries you generally sign a contract with one agent/firm maybe 2 depending on your circumstances i.e. DIVORCE. It is not like that here at all. You can list your home with every single person who approaches you.

So the agents are not at all under pressure from Sellers to keep up to date to provide service and market updates. IT is a lazy mans way of doing business. They have the seller send them photos and a write up and they put it on a website.

They have zero accountability to Sellers. They are hoping that there ad generates a lead and they can get the 5%
This is why you see so you few listings with detailed information or coordinates. Otherwise you or you and your Consultant can contact the seller directly and go around the listing Consultants.

I have seen the same house listed for sale by different people with different prices different details and more. Who benefits from that?

THERE are agencies out there doing a proper job. TRUST me I am joining one of them. Not before doing my own due diligence and meeting with several companies did I come to my decision. What they are doing is signing up listings but not allowing the sellers to be listed with others. This way there is some order and control over what goes on. ANYONE can still sell it and bring the buyer and be compensated for it.

Do your own due diligence and you will find there are good, hard working full time Real Estate Consultants here. Ask a few questions interview them you will quickly sort the good from the bad.

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Re: Setting a property sales price

Post by laphanphon » Tue Jan 03, 2017 9:44 pm

You mean to say, agents don't have exclusive contracts for their % if sold, and people list with multiple agents ? Not doubting what you say, but that makes no sense at all.

Must be different in HH, as in Udon Thani, everything is done on exclusive contract, no matter where the lead comes from, the agent gets their commission, even if they've done nothing.

I also find most people, way overpaid for their land / house, and simply can't or won't sell it for less. UP2them of course, as hoping 'there's another born today' for them.

I'm curious what the OP paid, per m² for the build and the cost of land it sits on, though a bit personal, since hasn't offered, I'm not asking. I find most developments, are way over priced.

I'm only know UT for building cost, and approx 10 to 15k per m² for western standard. Anything more than 15k, and it better be special.
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Re: Setting a property sales price

Post by dundrillin » Wed Jan 04, 2017 10:21 am

Can it really be the case that there is a shortage of buyers. The very quick sellout of the Mali development suggests otherwise. Obviously the developers make it very much worthwhile for the agents. To achieve a quick sale at a good price you may be better to offer a large commission to a single agent.

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Re: Setting a property sales price

Post by StevePIraq » Wed Jan 04, 2017 10:52 am

I am reposting as my previous post has got lost in Internet heaven.

I previously registered with 3 or 4 agents some 3 years ago, no contracts signed just a short Terms and Conditions form given to me, this defined some simple things like % commission, definitely no exclusivity clause. None of the agents provided any follow up or support.

My property is on a completed development where the properties were sold as land and house complete so I cannot give a separate build rate, however the rate for land and house was 35k Baht per M2, if the land was deducted the rate would drop substantially. This does not include the furniture which is proposed to go with the house.

Once I finish touching up a few things I will be discussing with some agents to get a "feel" of the sales price they propose, thereafter I will determine a way forward and a realistic price. I do not believe I will sell at much if any profit even though some folks do seem to sell at substantial profits. Personally I do not see the market that way.

As for offering a large commission as dundrillin suggested this could be a good option and definitely worth considering further, but how high to go as the usual rate is already 4 or 5 %, would one really want to pay 500k commission?
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Re: Setting a property sales price

Post by laphanphon » Wed Jan 04, 2017 11:15 am

Land seems to be a premium now of days. Which help raise resale price of our house nicely. Sits on 2 rai, which we bought for 240k baht, and now worth I mill in 6 yrs time.

Contracted build price was about 10k m² for what I consider 'living space', enclosed walled. Thais consider it anything under roof. Since a 2 story with expandable rooftop sala, if simply walled in, then real living space would be doubled. 160 + 160, along with 60 of Thai kitchen, which is half walled and screened in. So quite the bargain per m² when considering now, with side pads and small pool, well over 400 m².

Unique design, out of town (16 kms) and across from a wat, made it a harder sell. But all in, about 2.2 mill w/landscaping and small pool added, and sold for 3.7 mill to a builder........go figure

As stated, half of that profit, simply the appreciation of the land. One developer out here, is charging 10k a TW for just the land, so 4 mill a rai, and a silly price. This when people in area are not selling at half mill a rai. Been available for 2 years, and only one build so far.

In town of course, they are getting 10 mill and up a rai, max out at about 50 mill a rai..... :shock:

That location location location thingy......... 8)
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Re: Setting a property sales price

Post by STEVE G » Wed Jan 04, 2017 2:18 pm

The problem with selling property that was bought new on developments is that you can't expect to recoup the sometimes obscene profits that the developers made, only the actual land value and construction costs. As mentioned above, if you built independently on a sizeable plot, rising land values mean that you have a chance of making a profit.

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Re: Setting a property sales price

Post by aragon » Wed Jan 04, 2017 3:03 pm

dundrillin wrote:To achieve a quick sale at a good price you may be better to offer a large commission to a single agent.
That's exactly what a friend of mine did with his condo in BKK and got it sold very quickly, at the price he wanted, so he reckons he will do the same when he comes to sell his other condo in Phuket. It worked for him, but that doesn't mean it would necessarily work in HH!!
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Re: Setting a property sales price

Post by Name Taken » Fri Jan 06, 2017 10:05 am

jmhogan wrote:I feel the need to offer my 2 cents. Real Estate is very different here then most of our home countries. I am about to join a firm here and I have 20 years LICENSED EXPERIENCE back home.

You are right there is no experience necessary to become a "Consultant" here. There is no Real Estate Board there is no ethics or insurance umbrella you are a part of. It is not an organized association as you see in the USA Canada and I am guessing elsewhere.

The reason most people don't know what is for sale and sold is that they do what they call OPEN LISTINGS. A seller can list there home with anyone and everyone at the same time. Most countries you generally sign a contract with one agent/firm maybe 2 depending on your circumstances i.e. DIVORCE. It is not like that here at all. You can list your home with every single person who approaches you.

So the agents are not at all under pressure from Sellers to keep up to date to provide service and market updates. IT is a lazy mans way of doing business. They have the seller send them photos and a write up and they put it on a website.

They have zero accountability to Sellers. They are hoping that there ad generates a lead and they can get the 5%
This is why you see so you few listings with detailed information or coordinates. Otherwise you or you and your Consultant can contact the seller directly and go around the listing Consultants.

I have seen the same house listed for sale by different people with different prices different details and more. Who benefits from that?

THERE are agencies out there doing a proper job. TRUST me I am joining one of them. Not before doing my own due diligence and meeting with several companies did I come to my decision. What they are doing is signing up listings but not allowing the sellers to be listed with others. This way there is some order and control over what goes on. ANYONE can still sell it and bring the buyer and be compensated for it.

Do your own due diligence and you will find there are good, hard working full time Real Estate Consultants here. Ask a few questions interview them you will quickly sort the good from the bad.
I took a Real Estate course at a Community College in the U.S., but I never took the State test to become a Certified/Licensed Real Estate Agent. I think all of the Real Estate Agents and Brokers in the U.S. are regulated by the State they are in.
You are correct there are many Real Estate Agent and Broker Associations in the U.S. and some of these Associations hire very powerful Lobbying Firms to keep Real Estate prices high so that their Agents and Brokers make more money(Higher Home Price=More Money).
It all just boils down to money and greed in Real Estate in my opinion.

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Re: Setting a property sales price

Post by jmhogan » Fri Jan 06, 2017 5:29 pm

QUOTE: It all just boils down to money and greed in Real Estate in my opinion.

This is painting everyone with the same brush and is completely unfair and false.

I have honestly sold houses for ZERO commission for clients because they didn't have enough equity. I would tell house flippers if I was making more then them on a sale it was not a good deal for them.

I would make sure clients bought the right house not any house. I told you the good bad and ugly about a house. I was never focused on greed. I never sold one house over another because of commission.

I also left a Brokerage that charged 5% for a Brokerage that charged 3.75% because I didn't think people needed to pay 5% to get their home sold and could get the same service for less.

I also never mentioned hiring firms to keep prices high. Prices are kept high based on the demand and what a Buyer is willing to pay. In Canada the banks and government set new standards to try and slow down the market it has not happened the buyers are just pushing full steam ahead.

Things are very different here with the main reason being you do not own the land. If you owned the land the market here would be vastly different.

Long Story short not all Realtors or here in Thailand Real Estate Consultants are the same.

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Re: Setting a property sales price

Post by musungu » Fri Jan 06, 2017 7:23 pm

jmhogan wrote:QUOTE:

I also left a Brokerage that charged 5% for a Brokerage that charged 3.75% because I didn't think people needed to pay 5% to get their home sold and could get the same service for less.



Things are very different here with the main reason being you do not own the land. If you owned the land the market here would be vastly different.

Long Story short not all Realtors or here in Thailand Real Estate Consultants are the same.

My experience with buying houses in the UK over the last 30 years is that the highest commission was 3% and the lowest 1.5%. In USA it was 5% standard and in some commonwealth countries it was also 3%. The Agents were qualified, had their professional qualifications after their name and produced brochures with property details.

I do not understand the above comment that land ownership makes a difference.eg If one is a Thai national the commisions are the same? Openning up the land purchase to non-nationals could increase land prices even more and they are already far too high IMO.
Obscenities are seldom substitutes for common sense.

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Re: Setting a property sales price

Post by jmhogan » Fri Jan 06, 2017 9:16 pm

The ability to own a piece of land means a great deal. If you are only leasing the land and do not own it then why not just buy new? A new lease? A new modern house, new designs new features etc. You are 100% right that if Non-Nationals could own land the prices would rise way beyond what they are now which I agree is too high. You are also right that Thai's pay the same amount of commission as a foreigner. I suggested to my wife what about doing the same kind of Brokerage I worked at in Canada here charging less but offering top shelf service. She figured it would not take long before I "disappeared" Rocking the boat is not always a good thing in Thailand.

Case in point my wife tells me about a lady on the Thai news. She has a piece of land she OWNS along the new railway I believe. They started out offering her a several million baht for it. The price she later turned down was 80 Million Baht.
Had this land been leased at the end of the lease they just do not renew AND that 80 million offer is gone! When you own the land you have a little more power. Luckily she was Thai. Had a foreigner been leasing this what do you think the outcome would have been?

When you only lease your land at the end of the day someone else is holding the strings. You do not have 100% control.

One last note there is no real standard for commissions in North America anymore. YES people try and get 5% but some do it for $500 or even 1% or things like that. OF course there is usually a big asterix with this.

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Re: Setting a property sales price

Post by STEVE G » Fri Jan 06, 2017 9:41 pm

My elderly mother is in the process of buying a retirement apartment in the UK at the moment and the local estate agent offered to sell her house for 1% commission.

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