How to sell an apartment in Thailand – instruction
You have bought or thought about buying an apartment in Thailand, after which you need to sell it.
Sale an apartment in Thailand – step by step
- Contact a real estate agency
- With the help of agent to determine the market value
- Prepare an apartment for photo shoots and inspections
1. Terms of the contract with the real estate agency
Choosing between an exclusive or non-exclusive agreement with the agency, it is worth choosing an exclusive. Otherwise, the agent will not have the motivation to actively engage in the sale of the object.
An exclusive contract entails a higher commission rate, which affects the final price. However, if you do not have the opportunity to dive deep into the sale process, it is worthwhile to find an agent suitable for you.
Sign a contract for a period of one year, with the possibility of renewal by mutual agreement. Write down the conditions under which the size of the commission will be smaller if you bring your client. Since under an exclusive contract the agency shares a commission with other sub-agents, you also have the right to be one of them.
2. How to determine the price of apartments
Regardless for how much you purchased your apartment or villa, how much you invested in repairs, buying furniture, etc., the cost is determined relative to similar objects which sold in the current season.
In order to understand the estimated price of an apartment, by which you will be selling an object for sale, you need to find out about newly sold apartments in the same or similar location, with similar characteristics.
After you determine the price of sale, deduct the amount of the commission (usually 5-10%, depending on the terms of the contract with the agency), and also consider the amount of tax on re-registration of property. Sign the terms of who and in what parts pays this tax and other additional payments.
3. Preparing an apartment for sale
Advertisement of the object is impossible without a high-quality set of promotional materials. For a photo session, you need to prepare the apartments – as much as possible to remove traces of your presence and hire a professional photographer.
Describe the object, highlight its advantages, talk about the infrastructure and amenities of the area. Write about the investment property, how much you earned on rent during the period of ownership.
Despite the fact that these actions will be performed by an agent, it is worth describing everything of why you bought an apartment in this condominium and district. This will help the agent to make an offer for sale.
High-quality photos and a description of the object attract attention and increase the chances of a successful result.
What to do if the apartment can’t be sold
If you have not sold the apartment within a year, you can terminate the contract with the agent. Remove it from sale, make a short pause, or continue to rent an apartment. After 2-3 months, adjust the price, update the photos and start the sale procedure again.
Why the apartment can’t be sold
The main reason why it is difficult to sell an apartment in the secondary market is high competition.
Currently in Thailand a lot of new housing is being built. Only in Phuket, the fastest growing resort in Thailand , more than 35 new condominiums will be built between 2018 and 2020.
Each new object attracts buyers with an improved design, infrastructure of the complex, better location.
In addition, developers can offer agencies more favorable terms of cooperation. These are not only commission fees, but also potential sales, convenience of conducting deals, beautiful showrooms, the possibility of choosing different apartments, and so on.
Probably the construction boom will last another 5-10 years. It is also worth expecting “subsidence” of the market, falling prices, due to overstated expectations of developers and bloated marketing budgets. Possible decline in the global economy, or the economy of individual countries that are actively investing in real estate in Thailand.
One way or another, it’s better to expect a long term ownership. Sometimes, to get out of the investment with a plus, you need to wait. And in the waiting period, determine the price of renting an apartment and make an income.
