Setting a property sales price

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kendo
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Re: Setting a property sales price

Post by kendo » Fri Jan 06, 2017 11:07 pm

Agents over here are desperate to get properties to market. I could walk into town and get any of the eleven agents to market my property for 1% theirs a massive shortage of property on the market here in the UK.
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Re: Setting a property sales price

Post by hhfarang » Fri Jan 06, 2017 11:38 pm

In USA it was 5% standard
It actually ranges from 2% to 6% with the high side paid only when two agents are involved and they split the fee. The average per agent fee and what most contracts read is actually 3%. That's commission only. There are other fees charged by some agencies so you have to read the contract carefully. I paid $300 to go to a certified real estate agent school when I was younger and it saved me thousands in commissions over the years as I was able to price and sell my own homes without an agent.

Thailand, and Hua Hin in particular is a whole different kind of market...
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musungu
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Re: Setting a property sales price

Post by musungu » Sat Jan 07, 2017 7:53 am

jmhogan wrote: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?
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.
You bring up a very interesting point which really means that a peson buying a lease of (30yrs say) should pay a lot less than if it were a freehold property. I have always doubted the validity of extending these leases which I do not believe was the original govt intention and hence any validity is open to doubt.
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Re: Setting a property sales price

Post by StevePIraq » Sat Jan 07, 2017 12:02 pm

Although many points are quite valid we are getting a bit off topic now
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Re: Setting a property sales price

Post by Name Taken » Sun Jan 08, 2017 9:33 am

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

1.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. 2.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.

1. I wasn't talking about just Real Estate Agents, I was talking about Builders/Developers, House Flippers, Home Owners and Investors everyone wants to get rich off of Real Estate.

2. How many of those buyers were Foreign buyers or 'Real Estate Investors' wanting to make 250% profit?

I have a lady friend that is a Real Estate agent in the U.S. that brags about selling homes to wealthy Chinese.

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StevePIraq
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Re: Setting a property sales price

Post by StevePIraq » Sun Jan 08, 2017 11:07 am

Once again this is off topic, the topic was how to set a realistic sales price in the Thai market, If you want to discuss real estate in general start a new topic

:offtopic:
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Re: Setting a property sales price

Post by Dieter78 » Mon Jan 09, 2017 12:09 pm

hhfarang wrote:
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...
I think it all depends on your property. If it looks like every other regular boring 3x2 house with the same cheap fittings, no garden or is in a community of 50 other houses that all look the same then of course you will have problems to sell it at a good price.

If you own something bold, special or unique, perhaps a large house with some quality fittings and nice landscaped gardens someone will want it.

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laphanphon
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Re: Setting a property sales price

Post by laphanphon » Mon Jan 09, 2017 1:20 pm

Yes, cookie cutter houses in developments are a hard sell, especially as many pay toO much going in. Not taking a loss is hard enough, without expecting and ROI.
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Re: Setting a property sales price

Post by yahboo » Sun Feb 19, 2017 1:29 pm

STEVEP....i have a question. what is a conservative annual rental income (annual lease) for your home? what are the ongoing costs (tax, insurance etc)? Take annual rental rev less annual ongoing costs = net Cash flow. Take your all in purchase cost and divide by net cash flow. What rate of return do you get? From that number i can give you a good range property value

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Re: Setting a property sales price

Post by StevePIraq » Sun Feb 19, 2017 1:49 pm

I will have to look into that, rentals are all over the place in my development but I can come up with a number. Ongoing costs are minimal just annual communal fees plus electricity, water and TV, No tax or insurance

I am presently doing the place up in the hope it will get a better price, we will see.
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