Working out the value of your property need not be an art form with these simple tips.
How much is your property worth is that million dollar question. A question that we all want answered. And when it is answered, we are hoping that the figure is high. Essentially, a property is worth what someone will pay for it. This applies to both your property in Thailand that you want to sell or even the one that you rent out.
As the hype for property remains at an all time high, there are many people who rely on their property as an income now through a rental yield or its sale in the future will fund their next property or even their retirement. So if you want to know how much your property is worth consider these following ways to calculate it.
1. Seek expert advice.
A good real estate agent should know everything about the property market. They should know every little squeak that the market makes. Who is buying, for how much and why. Call on their expertise in order to give you a market appraisal of your property. It is recommended to get at least three valuations in order to help work out what your property is worth. Work out the average if there is a discrepancy between them. Remember that some agents may overvalue your property in order to win your business. It is easy to be lured by the highest figure but essentially a property is worth what someone will pay for it. Therefore if one agent is widely higher than the other agents, then ask them how they have reached this figure. This is also your opportunity to ask the agents whether people are offering at asking price or if not, what percentage lower.
2. Take a look at comparable evidence.
There is no better way to see what is going in the market than looking at actual transactions. Have a browse through Thailand Property to see what similar properties are being marketed it. Remember to compare apples for apples. If prices vary in the same building, take time to see why this is. Is it because it has a better view? Higher ceilings? A better layout? Or an extra bathroom? Take into account that some properties will be marketed at higher value as the owner may not be in a hurry to sell and likewise a cheaper property maybe because the owner need to offload their stock immediately. Chat with your management team or your neighbours to get an idea as to what is going on.
3. Calculate per square metre.
Many condominiums in Bangkok are calculated on a per square metre basis. This is one way to accurately work out how much your property is worth. Most agents will know what this figure is and you can quickly work out for your property by multiplying it with the floor area.