Tips On Real Estate Etiquette

[Stekmer]

I looked at buying a Condo in Jomtien last week (now back in Australia) and the real estate agent had the owner (Farang) turn up to open it up and answer some questions.

The owner gave me his phone number and the agent looked a bit concerned.

The price the owner asked for was 100,000 baht below what the agent told me and I'm not really that impressed with the responsiveness of the agent.

Would it be considered 'bad form' to approach the owner direct and use a lawyer or another real estate agent to handle the transaction if I decided to go ahead?

OK .... The baht is a bit high at the moment and there look to be a flood of new Condos about to be launched on the market in Jomtien in the near future so my timing is probably a bit off right now. It was within my price range and I like the location.

Thanks in advance ...

Edited March 23, 2007 by Stekmer

[billaaa777]

No, its OK, screw the real estate agent out of his commission! What do you care, its not your money. He only pays 100,000's a month or so in advertising, then his rent, utilities, staffs salary, etc. But you can save a little money and the person that showed you the place your going to live, why should he get anything? I am not a real estate agent. But really what a stupid question, why not ask why shoplifting is a crime? After all they sell it to you for more than the price they paid for it.

[Jomtien]

In my simple understanding of the local RE business the seller of the property has to pay a fee, not you.

Its up to him.

[twix38]

perfectly fine, as the estate agents will screw you given half a chance.

Did you know that if you were selling and gave many of them a net price (many ask what your net price is) then if they agree more from the buyer they will keep the extra together with their agreed commission and just give you what your requested net amount was.

This is dispicable, but amazing when you dig down to find just how many of them would or have done it.

By setting a net price you are effectively setting a maximum (and as you intended, a minimum as well). Most often easiest to do on land deals I gather, but widely practiced in Pattaya in any opportune situation and no doubt nationwide.

What right has the estate agent to pocket anything above the net price that they can agree on top of an already agreed commission? It's paid by the buyer for the property and is for the seller. The estate agents has agreed his commission and that should be his only payment.

I get sick of their attitude "how much you want to give us" "what net price you want, sir" In an unregulated market place where anyone can set up this business there are a few sharks and very few totally sincere players.

Edited March 23, 2007 by twix38

[lannarebirth]

If you want to purchase the property, submit an offer through the agent to the owner at the price the owner has told you he will accept. The owner is well aware it was the agent that brought the property to your attention.

[eljeque]

If you want to purchase the property, submit an offer through the agent to the owner at the price the owner has told you he will accept. The owner is well aware it was the agent that brought the property to your attention.

THIS IS THE HONORABLE AND ECONOMIC THING TO DO. I want to add just a little. Make an offer a little below what price the seller has asked. Also, go into the building and see if there are any other similar units available. There might be a board in the lobby, or if not, then speak to the receptionist.

The seller is responsible for paying the "3%" to the agent, not you and you more than likely neer signed anything with the agent so you have no legal relationship with him. The buyer seller has the legal relationship with him.

Please be aware of the cost of transfers and the like at the land office before you make a down payment.

If you are really sure that you want to live here for more tha five years, then you will be happy that you bought it. If on the other hand, you would like to sell it in a year or two and live elsewhere, you should re-consider renting.

Good luck.

[Stekmer]

Thanks eljeque - some good points.

I stayed in the complex that I like last month to try to get a feel for it and to see if there were any units for sale. There was one empty one only (from the notice board and asking the management) at a similar price to the one that is haunting me.

I've been told the transferr fee would be a 50 / 50 split with the seller and the legal fees would be 10,000 baht.

I've been going to Jomtien twice a year for the last 15 years and the ownership fantasy keeps comming back. I know the maths are much more in favour of renting but ..... can't get this idea to go away

Edited March 24, 2007 by Stekmer

[Chopper]

If you establish that the price the vendor instructed the agent to market the property at was indeed ฿100,000 less than that submitted to you by the agent (not an uncommon practice) then I would suggest reading the comments in bold. If not ‘eljeque’ provides sensible advice and ‘twix38’ outlines what is becoming an ever more increasing practice exercised by the more unscrupulous agents.

I looked at buying a Condo in Jomtien last week (now back in Australia) and the real estate agent had the owner (Farang) turn up to open it up and answer some questions.

Exemplifies the stupidity of the agent given they are marketing at a higher price than the vendor instructed them too.

The owner gave me his phone number and the agent looked a bit concerned.

Tough $hit given the below statement.

The price the owner asked for was ฿100,000 below what the agent told me and I'm not really that impressed with the responsiveness of the agent.

Then deal directly with the owner. The agent clearly does not have the vendor nor your interests at heart

Would it be considered 'bad form' to approach the owner direct and use a lawyer or another real estate agent to handle the transaction if I decided to go ahead?

When the agent is attemting to extort an extra ฿100,000 out of your pocket and then deprive the vendor of such.

OK .... The baht is a bit high at the moment and there look to be a flood of new Condos about to be launched on the market in Jomtien in the near future so my timing is probably a bit off right now. It was within my price range and I like the location.

Do your own due dilligence on the juristic company that owns the condo. Then instruct a good lawyer.

Thanks in advance ...

[HowardJohnson]

This is fairly common practice in Pattaya - unfortunately. Often, it is actually just the individual saleperson putting the price on top and they will pocket the difference. The owner of the business may not even be aware it is happening.

There are a couple of issues to be aware of. The owner has signed a legally binding document that he will pay the agent should they introduce a buyer - ie You. That means that if you deal direct with the owner and the agent discovers this then he can quite rightly go after the owner for his commission.

Another thing to check - Is the owner offering the unit to you for 100k less to deal direct because he thinks he won't have to pay commission? Just worth checking.

Personally, I would speak to the agent and say "Look, I see what you are doing and I am not going to pay 100k more than the owner is asking. If you insist on this, then I will walk away. I will pay fair price - not your price." Then its up to them. Remember there are loads of condos out there for sale.

By the way, I have been assured by a few agents in Pattaya that they do not indulge in this practice. As usual, it is a case of buyer beware and make sure you do your research.

HoJo

[Mobi]

I completely with HowardJohnson. This is not only common practice in Pattaya, it is also very common in Bangkok, and elsewhere in Thailand.

Whatever one thinks of estate agents, if they find you the place you want, and do a half way decent job then they deserve a commission.

What you and the landlord don't deserve is to be both ripped of by agents who inflate the rent substantially over the originally asked for price, and pocket the difference for the entire term of the lease.

It's a dirty business. If I were you, I'd reluctantly walk away from this one, and go find another. Not too hard in the current market, and if you travel round with a good Thai friend (or Thai wife) you can usually uncover good deals, without needing an agent.

Advertise for free on Thai visa

Sorry, my mind's a bit skew whiff this morning.

I see you were buying not renting.

Same thing applies, but maybe even more so as far as walking away from the deal. If you go ahead and buy at the seller's price, there may be some very upset people on your back. It's not worth it. There's loads of good condos out there - many farang owned, who just want to get shot of them at a discount. Check it out.

Edited March 24, 2007 by Mobi D'Ark