Agents' motivation against selling pre-owned property

[cookmanchef]

Clearly a high level of dissatisfaction here with the local agents but does it also work the other way? Do agents show clients a property and then the two parties get together to exclude the agent?

Those of you selling, if a buyer appeared and said they had seen your house in the window of an agent would you inform the agent and pay him his commission if he had spent a couple of hours detailing and photographing your property?

[Albie Quick]

Can't add anything worthwhile on the topic of this thread....but....

On numerous occasions in the past, as soon as people found out my occupation, they would relate to me their worst experience with the law and I've spent literally hours defending the actions of my colleagues. Eventually I realised that regardless of what I said, I was never going to change that person's perception that they'd been 'wronged'. As I got older and possibly wiser, I learned not to be drawn into the discussion at all.

I think it would be wrong, therefore, to draw any conclusions from the fact that JW or any of his colleagues haven't commented on this topic. In fact, I think they'd be foolish to do so.

[dozer]

Comparing realtors/real estate agents working in the West and “agents” working here, is like comparing apples with oranges.
The agents working in the West generally have formal training and work within a regulated industry and normally the various companies have a code of conduct.
Whereas the foreigners working here, apart from those working for the multinational companies, are mostly jack the lad types who have seen an opportunity in an unregulated business and for them it’s purely a means to an end.

[cookmanchef]

"The agents working in the West generally have formal training and work within a regulated industry and normally the various companies have a code of conduct."

Doesn't make them any different though, human nature means people will usually look for the best deal for themselves instead of the customer, IMO this is short sighted because in an industry like Real estate reputation is everything. I think a charge of 2000 baht for detailing, photographing would be better with a commission of 3% when sale is completed.

[traveller2]

Can't add anything worthwhile on the topic of this thread....but....

On numerous occasions in the past, as soon as people found out my occupation, they would relate to me their worst experience with the law and I've spent literally hours defending the actions of my colleagues. Eventually I realised that regardless of what I said, I was never going to change that person's perception that they'd been 'wronged'. As I got older and possibly wiser, I learned not to be drawn into the discussion at all.

I think it would be wrong, therefore, to draw any conclusions from the fact that JW or any of his colleagues haven't commented on this topic. In fact, I think they'd be foolish to do so.

I think Albie is making a valid point here and this is my belief also.

[petercr]

Can't add anything worthwhile on the topic of this thread....but....

On numerous occasions in the past, as soon as people found out my occupation, they would relate to me their worst experience with the law and I've spent literally hours defending the actions of my colleagues. Eventually I realised that regardless of what I said, I was never going to change that person's perception that they'd been 'wronged'. As I got older and possibly wiser, I learned not to be drawn into the discussion at all.

I think it would be wrong, therefore, to draw any conclusions from the fact that JW or any of his colleagues haven't commented on this topic. In fact, I think they'd be foolish to do so.

I think Albie is making a valid point here and this is my belief also.

Some truth in that statement but I would be interesting to hear from an agent how they justify a 5%
commission charge in Hua Hin when agents in Bangkok with the same or higher overhead will charge 2%

[Super Joe]

Eventually I realised that regardless of what I said, I was never going to change that person's perception that they'd been 'wronged'. As I got older and possibly wiser, I learned not to be drawn into the discussion at all. I think it would be wrong, therefore, to draw any conclusions from the fact that JW or any of his colleagues haven't commented on this topic. In fact, I think they'd be foolish to do so.

I think Albie is making a valid point here and this is my belief also.

Some truth in that statement but I would be interesting to hear from an agent how they justify a 5% commission charge in Hua Hin when agents in Bangkok with the same or higher overhead will charge 2%

A Bangkok agent: "Once we have agreed a commission rate, we will ask you to sign an agreement. 3%-5% of the sale price achieved is our normal rate."

First on the list of a Google search of Phuket agents... "Commission Rates: Properties under 5M 7%, over 5M 5%"



I doubt many worth their salt, from whatever profession being discussed, would bother giving time to these sorts of discussions, with respect. We've seen plenty on here before, they're usually pretty clear early on whether it's of a genuinely constructive dynamic, or that of a 'venting' one. And stuff like using an agent is a waste of time cos 'Joe Bloggs down the road has had his house up for 2 years', or pretending there's some kind of relevant importance over who takes the photos, kind of boxes this one off quick time, imho. You've only got to bother googling for 5 or 10 minutes to see it's the norm in Thailand for punters to send in their own pics. Look at some Bangkok and Phuket agent websites and they're quite Adam Ant they will not contact you until you have furnished said info. Many offer a charge to come out and take the photos, some even charge a monthly fee to list you on their websites

'Back home' agents demand exclusivity rights over your sale, virtually guaranteeing their fee. If you want to list it with a.n.other agent they charge what, a 100% increase on the fee. If you were going to 4, 5, 6 others they wouldn't touch you with a barge pole. Plus the business model here is totally different, it was borne out of a market in which maybe 90% of the itinerary was developers property. Developers produce their own marketing material, an admin staff intensive task removed hence the small office, minimal staff approach in the very prime location though. That's what the market dictated then, to catch the people wandering down the Hilton Road etc. Then the financial crisis turned things on it's head and resales exploded, but it's hardly viable for a business to upsticks further out to a larger office that affords more staff & salaries.


What I would have thought more relevant to newbie prospective buyers/sellers...

Sellers: I would have thought, are interested primarily in one thing, having prospective buyers come and view. In our 7 years developing 90% of viewings & sales have been through agents, despite giant signs out front, ads and maps in local mags/papers etc. I would love for loads of sales to come from walk-ins, but it just doesn't happen IME. I don't want to give up 5% anymore that the next person, I think we would all be in agreement that estate agents smell like tramps.

Buyers: I believe will not get to see a considerable amount of what's on offer without also going out with a couple of agents. Not going out with an agent because of bias is only really relevant if all you do is go out with one and nothing else. Surely buyers contact more than one and spend some time doing proper research on the ground.
What is certainly the case is that developers will often contact agents and say they really need a sale at the moment, you can knock 'x' off, or we'll include a furniture etc and that gets relayed to customers on the books. These are 'passing' deals that a buyer would not see looking on websites or driving round unless they actually made a point of contacting every place they drove round.

SJ

[petercr]

SJ..............I stand corrected

Checked back into my Bangkok condo sale records from last year and the sale commission was 3% inclusive of VAT. Still a considerable difference to Hua Hin sale costs and it seems the situation in Phuket is even worse. Maybe a high concentration of expats is the driver for these commission charges.

[Coldmike]

Another reason brokers steer clients to new developments is financing. New project developers and their banks usually offer attractive financing packages to buyers. Financing for Thai buyers is dificult for second hand homes and nearly imposiible for foreign buyers.

[Ken57]

Ref Above & Selling your home

I visited a UK freind in Hua Hin a few years back, I liked the area , for what it is worth I think
you should consider the following

1.maintain a road side advert board ---> with a mobile phone number ( English/German/Swedish)
and e mail address, on the busiest road as close to your property as possible

2.use the free Hua Hin Expat Assistance Centre as a knowledge base, you never know who you
may meet and what can be learned (The Hua Hin Foreigner Service Link Center is located on the
corner of Petchkasem Road and Damnoenkasem Road inside Hua Hin's District Office)
There must be a way of selling privately and avoiding Agents bad practice.

3.use all free internet resources to advertise your property, there are several UK based free
listing sites which can be read by anyone world wide.

4.I have not seen on this site a "for sale by owner" section, maybe it is worth asking a site
moderator if a section can be commenced.

5.Ask all your neighbours & contacts to tell their freinds that your house is for sale

Lastly I wonder where is your property currently listed ?

Ken (UK)