By the book: Preparing your property for sale
PHUKET: The onset of high season is here again. The monsoon rains have passed, the sun is out and businesses are preparing for the influx of tourists to Phuket.
The next six months are when most buyers will visit Phuket and when most property sales occur. Phuket real estate brokers will have already been short-listing those properties they will concentrate their efforts on most.
Market conditions remain slow but there is an increase in transactions in the resale market, which is offering great value for buyers right now. Real Estate brokers will always concentrate their efforts most on those properties they feel show best, offer excellent value and are the most attractive to their potential buyers.
If you are preparing your property for sale this high season, here are some pointers.
Establish a price
The current market is very competitive so price your property correctly to attract potential buyers. Consider the price you paid for the property, how long you have owned it, comparable property prices, what similar properties have sold for, any improvements added, present condition of the property, current property climate and exchange rates movements since buying.
Arm yourself with all the facts and remember: a property’s value is only what someone is willing to pay.
Getting your house in order
Before a buyer is found for your property, it is advisable to check through a certified lawyer in Thailand that you have all necessary ownership documents to sell your property, an estimate of the transfer taxes payable upon sale and an explanation of the selling options available to you. You need to know whether you can sell the property leasehold or freehold, or with a land-owning company. Also check whether you need to be physically present to complete a sale, or if you can give power of attorney to your lawyer beforehand.
Signage
Allowing the agent to erect a sign is very important as brand name and reputation may draw in passersby.
Negotiating
Be prepared to negotiate on your asking price. Phuket is currently a buyers’ market and in the end it is what the buyer will pay, regardless of your price.
Sharing costs
In Thailand it is customary for the seller and buyer to share the transfer costs 50/50 but this is up to you to negotiate. Sellers must understand associated costs and incorporate them into the selling price. Trying to renegotiate fees after a selling price has been agreed will almost certainly lose the sale.
Having found a buyer and negotiated the sale price and terms, it is not uncommon for the seller to run into issues that can potentially ruin the sale, such as missing documents or higher than anticipated tax. All of these are likely to result in a lost sale, or at the very least, returning to the negotiating table, delaying the sale and creating higher closing costs.
For more information about this article, contact Kevin Hodges, Siam Real Estate (SRE) at 076-383646, or email kevin@siamrealestate.com; www.siamrealestate.com.
— Kevin Hodges
