With respect to all readers, many armchair critics choose to comment on property prices without ever visiting a property. This post is directed to all those interested in or involved with the Real Estate market in Thailand, to explain, as best we can, how an accurate appraisal price is derived.
To be fair, when appraising a property, there is a great deal of detail that needs to be researched before presenting an opinion on the current property or business markets. We assure you it is not anything like a Lotto game, where you wait for numbers to come out and then use those. We ask you to read this post as a guide on how a professional company or appraiser prepares appraisal prices for clients selling and those wishing to buy with confidence. A professional company or appraiser should always follow this methodology. Thailand’s real estate market is highly deregulated and prone to misleading information, and, to be honest, scams.
Property appraisal in Thailand requires combining valuation methodology with thorough legal due diligence to ensure both accurate market value and legal security. Here’s the comprehensive step-by-step process:
PART A: PRE-APPRAISAL PHASE
Step 1: Initial Client Consultation & Terms of Engagement
Objective: Establish a clear scope and purpose of the appraisal
- Meet with client to understand their needs (sale, purchase, financing, investment analysis)
- Define appraisal purpose (market value, insurance, divorce settlement, mortgage)
- Agree on fees, timeline, and deliverables
- Sign engagement letter/contract
- Determine which valuation approach is most appropriate
Key Questions:
- Why is the appraisal needed?
- What is the property type (residential, commercial, land, condo)?
- What level of detail is required?
- Are there any time constraints?
Step 2: Request Initial Documents from Client/Seller
Objective: Gather all available property documentation
- Title Deed (Chanote, Nor Sor 3 Gor, Nor Sor 3, Or Chor 2)
- House Registration Book (Tabien Baan)
- Building Permits
- Previous Sale Agreements
- Survey Maps and Plans
- Tax Payment Records
- Company Registration Documents (if owned by a company)
- Condo Documents (regulations, financials, meeting minutes)
Note: If the seller cannot provide documents, your team can obtain them from government authorities.
PART B: LEGAL DUE DILIGENCE AT LAND OFFICE
Step 3: Title Deed Verification at Land Office
Objective: Confirm ownership, authenticity, and legal status
Process: Visit the relevant Land Office in person (cannot be done remotely). Review the front and back of the title deed, verify ownership, encumbrances, and transaction history.
| Title Type | Ownership Rights | Transferability | Survey Accuracy | Recommendation |
|---|---|---|---|---|
| Chanote (NS4) | Full freehold ownership | Freely transferable | High (GPS-based) | Best – accept for purchase |
| Nor Sor 3 Gor | Use and benefit rights | Transferable, can be mortgaged | Moderate (measured) | Acceptable – can upgrade to Chanote |
| Nor Sor 3 | Use and benefit rights | Transferable with neighbour consent | Low (not surveyed) | Risky – boundary disputes are common |
| Possessory Right | Occupation only | Not transferable | Undefined | Do NOT recommend |
Step 4: Encumbrance Check
Objective: Identify all legal claims, restrictions, or third-party rights
- Financial Encumbrances: Mortgages, liens, unpaid taxes
- Third-Party Rights: Leases, usufruct, superficies, easements
- Restrictions: Repurchase/pre-emption rights, government or agricultural restrictions
Rule: In Thailand, only encumbrances registered at the Land Office are legally valid.
Step 5: Ownership History Verification
Review the chain of ownership from the original issuance to the current owner. Verify there are no missing transfers, legal disputes, or overlapping titles.
Step 6: Land Survey & Boundary Verification
Ensure physical boundaries match the title deed. Always conduct a Land Office boundary verification (฿2,000–5,000) before finalising a purchase.
Step 7: Zoning, Land Use & Regulatory Compliance
Confirm that the property’s intended use aligns with zoning laws, environmental restrictions, and foreign ownership regulations.
Step 8: Verify Tax Payments & Outstanding Liabilities
Check land tax, transfer fees, utility bills, and condo juristic fees for any unpaid balances.
Step 9: Additional Due Diligence Checks
- Company-Owned Property: Verify registration, shareholders, authority to sell.
- Condominiums: Check foreign ownership quota, financial health, meeting minutes.
- Leaseholds: Ensure leases are properly registered and legally valid.
PART C: PROPERTY VALUATION
Step 10: Physical Property Inspection
Conduct a full internal and external inspection to assess condition, layout, and features.
Step 11: Market Research & Comparable Sales Analysis
Collect and analyse data on similar properties (size, age, condition, recent sales) and local market trends.
Step 12: Select and Apply Valuation Method(s)
Thailand uses three internationally recognised valuation approaches:
- Market Comparison Approach – compares recent similar sales.
- Cost Approach – estimates land + depreciated building cost.
- Income Approach – for investment properties; based on rental returns.
Step 13: Reconcile Multiple Valuation Methods
Weight results from different methods to reach a final value opinion.
Step 14: Consider Market Conditions & Risk Factors
Adjust value based on economic conditions, liquidity, and property-specific risks.
PART D: REPORTING & DELIVERABLES
Step 15: Prepare Comprehensive Appraisal Report
- Executive Summary
- Property Identification
- Due Diligence Findings
- Physical Description
- Market Analysis
- Valuation Methodology
- Final Value Opinion
- Assumptions & Limitations
- Certification & Signature
- Appendices (Title deed, survey maps, photos, data)
Step 16: Present Findings for Client
Deliver a written report and presentation summarising the appraisal, market context, and recommendations.
SUMMARY CHECKLIST: Thailand Property Appraisal Process
Due Diligence Checklist
- Title deed verified at Land Office
- Ownership confirmed
- Encumbrances checked
- Boundary survey verified
- Zoning and land use confirmed
- Tax payments up to date
- No legal disputes pending
- Foreign ownership restrictions reviewed
Valuation Checklist
- Physical inspection completed
- Comparable sales analysed
- Valuation methods applied
- Market risks factored in
- Final value determined and reported
Key Takeaways for Thailand Property Appraisal
- Legal due diligence is non-negotiable – Always verify at the Land Office.
- Chanote is best – Full freehold title is safest.
- Everything must be registered – Unregistered claims are invalid.
- Physical inspection is mandatory – The title alone isn’t enough.
- Use multiple valuation methods – For a balanced, accurate result.
- Hire licensed valuers – Especially for official purposes like bank loans.
- Allow 2–4 weeks – Proper appraisal takes time.
- Foreigners must take extra care – Land laws are strict and complex.
- Document everything – Transparency builds confidence.
This comprehensive approach protects both the appraiser’s credibility and the client’s investment security in Thailand’s complex property market.