5 top tips to sell your house or condo in Chiang Mai
“Market value” is the price a willing vendor is prepared to sell at, and the amount a willing purchaser is prepared to pay for… a price determined by market forces of supply and demand; everything has a market value: a chocolate bar, a house or condo, or a bottle of wine and so on.
There are other key assumptions to be made but, broadly speaking, this is the gist of the definition of the concept.
So, if you really want to sell your home, follow these tips:
1) Don’t confuse replacement cost with market value
Market value is NOT, contrary to many people’s opinions, the sum of the asking price for the land on which a property stands PLUS the historic or current cost to build the house or condo or other type of property.
This is the replacement cost which is usually used by insurance companies, quantity surveyors, builders and the like to estimate development or rebuild costs.
As most foreigners know, in many more mature economies such as in the US, UK or in Europe there have been times when properties have sold well below replacement cost as overall market values have dropped and sellers have had to take a loss to sell their house or condo.
Why should the Chiang Mai property market be any different?
Tip 1: Be realistic on the market value of your home!
2) Listen to the professionals, their job is to help you sell
Make sure you list your property at an APPROPRIATE asking price in order to attract interest. Sure there can be a small “negotiation allowance” in your asking price but it’s meaningless to offer a property at 20, 30, 40 or an even higher % over the market value.
Do listen to the professionals—they are working in the market every day and can tell you like it is.
Don’t listen to neighbours, aunties, your friend’s uncle from Bangkok or the lady who sells Som tam on the corner of the Soi!
Oh…, and don’t necessarily go and list with an agent who just nods and agrees to list your property at whatever price you suggest—you might be in for a long, long time before you can make a sale… (3-5 years??)
Tip 2: Listen to the vastly experienced residential team at Perfect Homes about what actually sells and at what price!
3) Detach yourself emotionally from your home and the sale itself
Just because you have had some great times living there, some super memories or have over-specified the walls, roof, a/c system, or like lime green walls in your bedroom, it does NOT mean the market value is any higher to any other purchaser.
Remember, in Chiang Mai many, many people come to find their dream home: they might look at second-hand property but they can still buy land and build their ideal house without paying you for the perceived profit margin on your dream home
Tip 3: Let your agent tell you what features and items will “add value” and what will not!
4) Make sure your home is well presented both for the agent’s visit and that of any prospective purchasers
Yes, we all know a home is for living in… but you’d be shocked at just how much first impressions count. Make sure your home is clean, tidy and presents as well as you can make it.
Avoid unmade beds, unwashed dishes in the kitchen, newspapers or magazines or toys or drying clothes strewn everywhere (it doesn’t help the poor photographer either, who is trying to make your place look its best). It doesn’t take long to tidy up and, rightly or wrongly, may be the difference between a successful sale and not.
Tip 4: Be smart, make it look smart!
5) Don’t factor currency exchange rates into your asking price
Almost all foreigners have to bring money in from overseas to buy property in Thailand—and all who do are at the mercy of the exchange rates at the time of purchase. Just because the Euro/US$/GBP or other currency exchange rate is less favourable than when you bought does NOT affect the price of your home in Chiang Mai.
You might think there will be more demand for Thai property if the Baht is weaker but currency issues are only a very small proportion of the overall decision making process for most people looking to buy in CM
What do you think about these “top tips”? Any comments or questions welcome…
Or just give us a call if you’d like to know more about selling your home!
Perfect Homes is a leading Chiang Mai real estate agency with extensive experience in the city, regionally, nationally and internationally.