The Valuation Index: Pricing Property and Assets the Smart Way

A lot of us have assets that we value when we take stock of our lives. We may have gold, we may have jewellery, we may have a rare watch. So, how do we start a valuation exercise?

Let’s start small.

Say we wanted to sell our second-hand iPhone 14. We place an ad for about 20 percent above what we think the product may sell for, and then wait for a response.

Say the ad is for $100 and you get an offer for $50. Now, we value our product somewhere between $50 and $100.

Certain markets give you a quick response to valuations. Real estate is generally a late response.

So, you’ve decided to put your condo on the market.

Let’s analyse one in the Ekkamai area I did lately with a space of 452 sqm.

The asking price: THB 38 million
The bidding price: THB 29 million
Est. Fair Value: THB 31.5 million
Fire Sale Value: THB 29 million

You may notice the divergence. Let’s quickly analyse.

Downside:

• Less buyers for bigger units
• Less buyers for bigger budgets
• High maintenance for bigger units

Upside:

• Very limited supply for units over 400 sqm
• Good location, less than 1 km from BTS Ekkamai
• Excellent ventilation and space in a well-lit unit with plenty of sunlight

Condo staging aims to maximise space and appeal to buyers through a neutral, organised, and well-lit environment. Key strategies include deep cleaning, removing personal items (decluttering), and using multifunctional furniture to highlight the layout.

Stagers often use a neutral colour palette, bright lighting, mirrors, and strategic accessories to create a modern, inviting, and airy feel.

Declutter and Depersonalise: Remove personal items like family photos and excess clutter to make the space feel larger and allow buyers to envision themselves living there.

Neutral Palette and Lighting: Use neutral paint colours to brighten spaces. Maximise natural light, and use lamps to create warmth.

Optimise Furniture Layout: Use proportionally sized furniture to ensure rooms don’t feel cramped. Utilise furniture with exposed legs to create a sense of more floor space.

In the last three months, I have refused an offer to sell. Why?

• Sellers want top-dollar and want to invest nothing for staging.
• Sellers, themselves, have not visited their units for months or years.
• Sellers have no idea of the visuals, atmosphere, and scents they offer the prospective buyer upon their first visit to the condo.

Unless a landlord looking to sell is willing to part with 0.1 percent of the value of the condo to stage it, I, for one, am not willing to represent the seller.

Because it’s looking for a buyer at the bottom of the barrel. The buyer who is solely focused on price.

The future for the agent may not be rosy, with a reputation for scraping the bottom of the barrel.

Valuations are a science, and waking up one day thinking you deserve a certain price for your asset is delusional.

Wake up and smell the appraisal!

Vimol Kogar, helping you find a home.

You may contact him at:
Vimol@arcadia-consult.com
+66816165987