When you sell or rent your home, you need a valuation service from a professional agent to ascertain your home’s value - which involves paying an agent for these services. To ensure everyone gets a fair deal out of this process, The Ministry of Economy and Finance has taken direct measures to ensure that real estate operations run smoothly in the market and benefiting both parties - agents and property owners. As a result the fees have now been regulated to exact figures. So if you are a property seller, this information relates directly to you!
Below is the necessary calculation formula you must know when hiring an agent to valuate your property in Cambodia, thanks to realestate.com.kh:
Valuation Fees setting:
When you sell your property and need a valuation firm to define your property’s value, these are the charges you should expect from your licensed Valuer:
● For a property that is valued below $100,000, you need to pay a valuation fee of 0.17% of the property value, or a minimum of $170;
● Property valued between $100,000 and $1,000,000 will be charged to you at 0.1%, or a minimum of $900;
● Property with a value between $1,000,000 and $5,000,000 will be charged to you at 0.05%, or a minimum of $2,000;
● Property with a value between $5,000,000 and $10,000,000 will be charged to you at 0.03%, or a minimum off $1,500;
● Above $10,000,000, you will be charged at 0.025% of the property value.
To clarify this, let’s take a look at some specific examples below:
Key Real Estate is a legal valuation firm. Mr. Vichet hires Key Real Estate to valuate his property and he agrees to pay the price that what the ministry has set. After doing the valuation, it is found that his property is valued at $1.5 million. So, how much is the fee?
See how to calculate:
- First $100,000 is applied: $100,000 X 0.17/100 = $170;
- And $900,000 is applied: $900,000 X 0.1/100 = $900;
- Then, $1,500,000 - ($100,000 + $900,000) = $500,000. So, the $500,000 X 0.05/100 = $250
- Now we can get $170 + $900 + $250 = $1,320.
So, Mr. Vichet needs to pay a valuation fee of $1,320.
Cambodia Properties Limited (CPL) is a legal valuation firm. Mr. Sovan hires CPL to valuate his property and he agrees to pay what the price that the ministry has set. After doing the valuation, it is found that his property is valued at $13 million. So, how much is the fee?
See how to calculate:
- First $100,000 is applied: $100,000 X 0.17/ 100 = $170;
- $900,000 is applied: $900,000 X 0.1/100 = $900;
- $4,000,000 is applied: $4,000,000 X 0.05/100 = $2,000;
- $5,000,000 is applied: $5,000,000 X 0.03/100 = $1,500;
- Then $13,000,000 - ($100,000 + $900,000 + $4,000,000 + $5,000,000) = $3,000,000. So, the $3,000,000 X 0.025/100 = $750
- Now we can get $170 + $900 + $2,000 + $1,500+ $750 = $5,320
So, Mr. Sovan needs to pay a valuation fee of $5,320.
However, while this is set for the general property valuations; note that some special properties such as factories and huge business properties have no set valuation fee. Instead, it depends on each case and the calculation formula set out in the pre-agreement between you and valuation firm.
Looking for real estate for rent in Phnom Penh? Or interested to know the commission fee for property sale and rentals, find out more vital information for property buyers and sellers on realestate.com.kh/news today!