Phuket Condominium Fair Market Value
Phuket Condominium Fair Market Value
Buying and selling a condominium is a relatively straightforward process in Thailand. But the market has many variables when it comes to each property, making it more challenging to establish the condominium fair market value. That being said, some buyers may wonder if they’re getting a fair deal for their unit. If you’re shopping for Phuket condominiums, here are some tips to ensure that the price you pay is fair.
Comparing Phuket condominiums is a little easier than comparing other types of real estate. If you focus on “registered” condominiums, your realtor will show you similar properties in the area you are targeting. When you compare these types of condominiums, you will see a premium for units that have sea views or are walking distance to the beach. Foreign freehold units also carry a premium in this market. This will give you an idea of what’s on the market and at what price.
Next, it's important to calculate the price per square meter for comparison of fair market value. This is a calculation of dividing the sales price by the unit size in square meters. For example, let's say that a sea view Phuket condominium sold for 7,000,000 THB and the unit was 40 SQm. This would give us a price per square meter of 175,000 THB. From the graph above from Knight Frank, we can see that this sea view unit in this example sold at a price in line with current estimates.
Once you’ve looked at a number of units and have had a chance to compare them along with the help of your realtor, you will start to understand and get a feel for Phuket condominium fair market value. There will be some condominium units you feel are good value and others you feel are overpriced. If you think that all the units you viewed are overpriced, you might want to consider another market like Pattaya or Hua Hin where prices of condominiums are 20% to 40% less.
Once you have seen enough condominiums and narrowed your search down, make a “short” list of properties. By this time you will have determined the condominiums fair market value and the next step is too make an offer. Think about the location, the terms, the quality of construction along with the price. All of these are important to consider and become a factor once you’re ready to make an offer.
Work with an Expert
Like any other professional, the real estate agent or realtor plays an important role in a successful transaction. The realtor should know what properties in the area are going for and how to find good deals. Additionally, quality real estate professionals can tell you what to expect from different areas. This is especially important when matching your needs and requirements to the right property and location. A good realtor will also know the best process for a successful and safe transaction.
The other expert that is needed is a good property law firm. This is essential to determine that the condominium is free of title defects and uncover any unknowns such as a mortgage or a lien. Most property law firms break their work down into 3 parts; due diligence report, contract creation or contract review, and the transfer of the property at the land office.
Timing and Motivation
Once you’ve done the first three steps, you’ll finally want to start narrowing down your list to just one property. It’s at this time that you’ll be able to make an Offer and with the help of your realtor purchase the condominium below fair market value.
Investors of Phuket condominiums should consider the timing of their purchase. They may be able to get a better deal on a condominium in the low season than in the high season (sometimes but not always). The same can be said for condominium developments that are brand new to the market. These condominiums will offer new promotional pricing and early bird specials.
Additionally, on the resale market, you may also be able to secure a condominium at a reasonable price if the seller is motivated to sell. Remember that units priced below condominium fair market value tend to sell faster. If you find a condominium at an excellent price, be sure to ask your realtor to move on it quickly. We have a fair amount of real estate speculators in Phuket that flip units for extra income and do this on a regular basis.
Buying Phuket condominiums at below fair market value is a process. You should start by doing some research online and by working with a real estate professional who specializes in the local Phuket condominiums market. This process, combined with all of the previous work you’ve done, will help ensure that you’ve get the best price for your investment.
Call us today for more information about Phuket condominiums at +66 93 606 0906. Or contact us by email at [email protected]