Discount for new property projects

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Mandy with cats
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Discount for new property projects

Post by Mandy with cats » Mon Jul 02, 2018 1:53 pm

Could anyone please share your experience in negotiating with the property developer/ sales manager (for new developments) here in HH? I used to bought one new property in Phuket last year without an agent, and the developer gave me a 15% discount from the sales price, that make sense as they do not need to pay a commission to agent. This time when I try to talk about the price for an off plan development in HH, the sale manger only offer me a 3% discount from the listed sales price even they don't need to pay the 5 or 6% agent commission, and I am potentially their first buyer because their show flat is still in progress and all land plots are available. Isn't it a buyer market? And they are just offering a 3% off from a 7M property, is it reasonable? Any tips for negotiating a property price would be grateful, TIA.

hin
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Re: Discount for new property projects

Post by hin » Mon Jul 02, 2018 3:07 pm

If they do not have any more to show than what you say, you need a very big discount. You cannot see any examples of what you will get, you cannot see if they are reliable about fulfilling their promises, you cannot see how long it will take to receive what you are asking for, you cannot see who your neighbors will be and ask for their opinions. If you cannot see a track record you would be buying a pig in a poke. Naturally, the show house will represent their best effort but even that is not ready. If they want your commitment with no solid examples of the commitment on their part, except their own word on how good they are, you should want a very BIG discount. Show them that you have your walking shoes on. They are not the only pebble on the beach.

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Re: Discount for new property projects

Post by thebears » Mon Jul 02, 2018 5:03 pm

I think the simple answer is that it's very much a buyers' market, as you rightly say. If the deal isn't an absolutely great bargain, as it should be given the current market conditions, then I wouldn't waste my time. I think from what I can see of things, the property market is extremely slow and developers are trying to seek the prices that once were standard expectation during their golden period. It would seem that your developer isn't even granting you his saving from the absence of an agent's fees. I suppose that shows that they prefer to 'stiff' the few buyers who come along, rather than being reasonable.

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Re: Discount for new property projects

Post by Mandy with cats » Tue Jul 03, 2018 8:18 am

Ok, thats easy then, i offer what i think it worths, if they say no, then just walk away to developments which are just few minutes away

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Re: Discount for new property projects

Post by thebears » Tue Jul 03, 2018 7:19 pm

Yes indeed. The standard response that I remember getting some years ago when I made a purchase, is that they "have another interested buyer". The best way to respond to that of course, is "great, sell it to them then", and look for something better yourself from a seller who isn't trying to use dishonest practices to make a sale. Even when one is dealing with agents here, they appear almost never, to be professionally-certified agents.

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Re: Discount for new property projects

Post by Mandy with cats » Tue Jul 03, 2018 8:47 pm

Thats ture about the agents, my experience was, the agent took me to the developer, then she had a cup of coffee and waited me at the lounge, nothing else she did to help me on the process. I cancealled that deal for some reason and after that, i dont think i really need an agent who just drive me to the developer, i would rather have a bigger discount from the sale price.

In the other words, working as a freelance agent seems a nice job here, high commission, little workload.

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Re: Discount for new property projects

Post by oakdale160 » Tue Jul 03, 2018 8:53 pm

"Even when one is dealing with agents here, they appear almost never, to be professionally-certified agents".

Is there such a thing as a professionally certified agent????

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Re: Discount for new property projects

Post by thebears » Tue Jul 03, 2018 9:35 pm

oakdale160 wrote:
Tue Jul 03, 2018 8:53 pm
Is there such a thing as a professionally certified agent????
No, there doesn't appear to be a professional certification here, indeed. But in many other countries there's a professional body, to which we'd expect them to associated individually.

I think as the OP has added, the agents here appear on the whole to offer very little for their commission and in my experience they tend to be very closely affiliated with developers here and seek to promote a small number of developers (or even just one developer) rather than adding broader value to their service. So yes, if you can do the work seeking the good developers out, it's worth it OP.

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Re: Discount for new property projects

Post by Mandy with cats » Wed Jul 04, 2018 7:15 am

In my country, agents are licensed but i asked one agent here that do they need to take exam or apply for license, she said no, everyone can work as an agent, so u can imagin how reliable their information is when they want to close the deal for commission. Another thing is, commission is always beared by the seller, so i feel that when there is a negotiation, the agents always tend to stand by the seller, also higher price for higer commission. (in my country, commission is shared between buyer n seller, and each pay 1%only)

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Re: Discount for new property projects

Post by StevePIraq » Wed Jul 04, 2018 3:05 pm

1% commission here no way, 4% up is standard. Agents do little apart from drive you to a location and let you look around, they have little if any knowledge of what properties have recently gone for in your local area. I am selling a property in Australia and the document I received from my agent had the last 20 properties sold in the area with their asking and final selling price, you will never get that here.
When I bought direct here 10 years ago, I got 7.5% discount, 5 x air conditioners, alarm system and instant water heaters free. You have to play hard ball here or they will trample all over you.
"Live everyday as if it were your last because someday you're going to be right." Muhammad Ali

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Re: Discount for new property projects

Post by thebears » Wed Jul 04, 2018 3:28 pm

StevePIraq wrote:
Wed Jul 04, 2018 3:05 pm
free. You have to play hard ball here or they will trample all over you.
Absolutely. Good advice for any buyer.

The OP may like to consider a second hand property, as there are plenty it seems and many willing to give a far better deal than developers.

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Re: Discount for new property projects

Post by Mandy with cats » Wed Jul 04, 2018 11:36 pm

No wonder, selling a 6M property the agent get at least 240k, which is a huge money compares to their average income and low living cost, once a deal is made, they can sustain their living for a year...

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Re: Discount for new property projects

Post by PBbeacher » Thu Jul 05, 2018 6:38 am

Mandy with cats wrote:
Wed Jul 04, 2018 11:36 pm
No wonder, selling a 6M property the agent get at least 240k, which is a huge money compares to their average income and low living cost, once a deal is made, they can sustain their living for a year...
1) Unlikely the selling agent gets to pocket the commission unless they are solo freelancers - it'll all go to the company who may give the agent a %, and reserves the rest for office rent & bills, cars & fuel, staff salaries, operational expenses, marketing, website costs, taxes, accounts, etc, etc, etc...

2) If you think 240k Baht is enough to sustain living here for a year, you are in for a surprise!

Mandy with cats
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Re: Discount for new property projects

Post by Mandy with cats » Thu Jul 05, 2018 10:19 am

my experience with the Thai agent was exactly the solo freelancer type, and thats why her performance and professional practice was not even controlled or guided by a company policy. How much a local Thai needed to live for a year? Could be any figure, but many Thais in BKK or Phuket are earning less than 20K a month. Especially when there is no threshold to becoming an agent, unlike doctors/ teachers/ lawyers... Anyway no offence but I clearly know that I dont need an agent at this moment, unless i want to look for some resale and i dont have the owners contact.

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Re: Discount for new property projects

Post by laphanphon » Thu Jul 05, 2018 1:19 pm

7 mill for a house in a development in HH.... :shock:

Better be a mansion. I got a house for you, half that price, 400+ sqm under roof (200 real living space), on 2 rai. for 7 mill, I'll even throw in the 4 rai of land around it.....so you won't have neighbors to worry about :cheers:

In Udon Thani..... 8)
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