We always, invariably, get asked: “How long does it take to sell a property?”
When we started in this business, it was a very hard question to answer, with a variety of responses possible:. “A month,” “Six months,” or “A year or two.”
The other day, whilst looking at the stats and the properties which have been sold by Perfect Homes, I noticed something very interesting.
In the last 11 years, we have only sold a handful of properties which has been listed on our site longer than three months. Meaning that majority sales of all of the properties we have sold were completed within three months of listing—many even in days! The only exceptions to this were when the seller made a major price reduction or major alterations to the property after a period of not receiving any solid interest. This has been the case for both condos and houses.
So, why is this?
Well, the answer is simple: there is a very strong property market in Chiang Mai and this means any property that is well-priced within its specific market is likely to gather a lot of interest and, in turn, sells quickly.
But the initial asking price set by owners is, in many cases, just too high!
As an agent, we walk into so many properties where the owner is setting a price based on either what their friends, aunties or neighbours have told them, or perhaps the agent who sold them the property said they could resell at a profit a few months later. Or, even worse, the asking price can be simply a figure in the owner’s heads that covers the costs of the new car or yacht they want!
Five Signs Your Property Is Overpriced
- People are viewing regularly but not making any offers.
- People are viewing regularly but are always offering low prices, seemingly just to feel out the seller.
- People are simply not viewing.
- People are viewing and constantly complementing the property but disappear after viewing.
- People keep agree to the asking price and then simply disapear.
Agent’s mistakes
This generally incorrect pricing of the property is also fuelled by inexperienced agents, with almost everyone being a freelance real estate agent—plus a Thai Cultural issue of people being “Kreng Jai”. Meaning it is much easier for many agents to agree with the owner on their unrealistic price and just list it to save the owner losing face!
But this is unfair on the owner and the agents—remember a real estate company only gets paid if a sale is made. So, if the price is unrealistic the property will probably never sell, or they will have to wait five years for the property market’s prices to rise to meet the sales price.
In the meantime, the agent’s website is cluttered with over-priced properties, and the owner thinks agents are useless as they do not bring anyone to view the property let alone make an offer on the property.
Let them make an offer!
When discussing the price, and the point is made that the price is too high, the most common answer from an owner is. “I have to set it high so that I can reduce it when someone makes an offer.”
However, with prices being more often than not set too high, many people are scared to go to view the property as they do not believe the owner will agree to sell their property at a reasonable price—indeed, a vicious circle.
So again the agent cannot show the property and the owner gets no offers!
My house is different!
Yes, all houses are different, and that is what makes a house stand out. But, unfortunately, despite most owner’s views to the contrary, their house is not unique, not the best in the world—and its value is set by the market and not their dreams.(Perhaps read Dream Houses Dream Prices)
Houses are generally fairly homogenous. They are built to a set square metreage and on a set piece of land which, in turn, makes an easily estimated value. Sure, a freshly painted, well-furnished house, will attract more buyers and make a house much more saleable, but this does not increase the house value considerably!
Remember just like anywhere else in the world, property prices are set by Supply and Demand
What does all this mean?
It is quite simple. If you would like to sell your condo/house in a reasonable amount of time, be realistic about the price. Ask the agents about their thoughts and advice on the property and the current market conditions. Ask them what they have sold and what is a real comparison to your property, not what is listed on other sites, as many of those listings are either stagnant or sold at an unknown price. They should be able to answer this or at least have access to this kind of information. If not find and agent that can.
Take all this on board and make sure the property is priced and presented to sell in the current marketing conditions.
Remember, you have three months to do it!
