Used-home sales off 20-25%

       Sales of used homes in the first half dropped by 20-25% from last year in line with the economic situation but should improve by the second half, said Visit Kunatharakul, president of the Real Estate Sales and Marketing Association (Resam).
       He said sentiment recovered in July and August, resulting in an expectation of a 15-20% drop by the end of the year.However, political risks that affect business confidence still needed to be watched, he said.
       The association plans to deal with financial institutions to develop fasttrack mortgage applications for secondhand home buyers in order to improve the attractiveness of used homes for buyers.
       As well, Resam has joined with the Building Safety Inspectors and Officers Association (BSA) to introduce a usedhome inspection service, helping buyers and sellers establish selling prices that are as fair as possible.
       BSA president Chollachai Thammaviwatanakul said home inspection would help assure buyers that a used home was ready to occupy. It would cover five areas including architecture, structure, roofing, electrical and sanitation systems.
       "This programme will enable a buyer to estimate whether the selling price is worth it or not. It will show facts based on a report made by certified inspector and approved by our committee," he said.
       However, the inspection would not be a guarantee of a home's condition.It would just inform the buyer which parts of the unit were in good condition and which should be repaired, while the seller would get a more accurate idea of the selling price.
       Service fees for home inspection are 8,000 baht for a single house with a usable area of less than 400 square metres and 5,500 baht for a townhouse or condominium smaller than 100 sq m. For Resam members' customers,the rates are 5,500 and 3,850 baht respectively.
       Currently, the BSA has a total of 800 certified inspectors for nine types of buildings covered by the building inspection law. The association expects to train 200 more inspectors during this year.
       In another development, the real estate agency Century 21 Realty Affiliates (Thailand) will offer its franchises to 21 franchisees who will pay only US$21 each for the right to operate the brokerage business under its brand.
       Qualified applicants must have at least three years of experience in real estate brokerage. The company will provide support in terms of a database, IT and training for staff. Century 21 franchisees normally pay 60,000 baht. The company expects to have at least 100 franchisees within two years.