Selling land based on the appraised (goverment assessed) land office valuation

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lomsak
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Selling land based on the appraised (goverment assessed) land office valuation

Post by lomsak » Wed Apr 20, 2016 1:15 pm

I am in the process of selling some farm land.
At long last found a serious buyer

However just been made aware that the land office/ government earlier this year dramatically increased the properties assessment value for taxation purposes.
( its three time higher than the previous assessed valuation for tax)

This assessed valuation value is nearly double the price I am selling for.

Whilst I appreciate its impact is huge on Withholding tax, should I be selling at a assessed price (per square wah.)

I want to sell at a realistic and achievable price, as I need the funds.
Its not a fire sale, and I can wait many months, but to lose my current interested customer and start afresh at marketing it at this dramatically higher price seems tempting but highly risky.

Key question. Should land in rural location realistically be sold around price assessed

RCer
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Re: Selling land based on the appraised (goverment assessed) land office valuation

Post by RCer » Thu Apr 21, 2016 7:21 am

Personally, if you feel you are getting fair value at present price and the buyer feels the same way, sell it.

If it is anout maximizing profit, a few questions arise.

1. How dependable are government assessed values vs market value?

2. How much would it cost you in actual B to wait, as well as time and effort put into the marketing? I tend to put a high value on my time in such things.

AJBangkok
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Re: Selling land based on the appraised (goverment assessed) land office valuation

Post by AJBangkok » Fri Apr 22, 2016 12:37 am

I would say the government appraisal price has virtually no chance of being lowered so you are banking on your property price going up. In this environment I can't see that happening for quite a long time.

The last government appraisal increase before this one was in 2011 I think, so you may be waiting a very long time for the next one and it's highly unlikely that they would decrease it because what government in the world doesn't want more tax revenue.

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