What is the customary commission rate (%) paid to agents on closing a *sale* of a house?

5% seems standard here and way too high

3 per cent, however in the case of an expensive property a fixed fee is often arranged.

I've never actually paid one, but heard that 3% is about normal.

mostly 5% here

 

way too much for what the majority of them do..... very little!

The real estate agents in the Pattaya region usually ask for between 3% and 5% commission of the selling price, which is typically paid for by the seller. Subsequently, the agent’s commission is included in the advertised price of the property.

Note: this is negotiable.

 

As well as the agent's commission there is a transfer fee of 2% of the purchase price to be paid to the Thailand Land Department.

The transfer fee is usually paid by the buyer, but many negotiate to pay 50/50 between the buyer and the seller.

 

There is also a 0.5% stamp duty to be paid, usually paid by the seller, but many also negotiate to pay 50/50 between the buyer and the seller.

1 hour ago, Somros said:

What is the customary commission rate (%) paid to agents on closing a *sale* of a house?

One big problem are the definitions of above.

 

What is an agent? Someone who checks the details of your property, maybe takes pictures, publishes advertisement, takes possible buyers to the place?

Or is Noi, who has a shop nearby and tells someone a name, an "agent"? It seems many people who do almost nothing want full agent commission.

 

And then the "closing of the sale": I am sure many "agents" have very different definitions what that means.

20 minutes ago, OneMoreFarang said:

One big problem are the definitions of above.

 

What is an agent? Someone who checks the details of your property, maybe takes pictures, publishes advertisement, takes possible buyers to the place?

Or is Noi, who has a shop nearby and tells someone a name, an "agent"? It seems many people who do almost nothing want full agent commission.

 

And then the "closing of the sale": I am sure many "agents" have very different definitions what that means.

Good points. I guess what I am aaking is what uaually gets paid in practice regardless of any unwritten rule, convention or definition.

53 minutes ago, OneMoreFarang said:

One big problem are the definitions of above.

 

What is an agent? Someone who checks the details of your property, maybe takes pictures, publishes advertisement, takes possible buyers to the place?

Or is Noi, who has a shop nearby and tells someone a name, an "agent"? It seems many people who do almost nothing want full agent commission.

 

And then the "closing of the sale": I am sure many "agents" have very different definitions what that means.

 

In Thailand an agent is someone who provides a buyer.

40 minutes ago, blackcab said:

 

In Thailand an agent is someone who provides a buyer.

But are they involved with the transfer documentation and completion?

21 minutes ago, PJ71 said:

But are they involved with the transfer documentation and completion?

In my experience, the agent prepared the purchase and sale agreement and walked the documentation through the transfer process at the Land Department on the day of transfer.

2 minutes ago, Etaoin Shrdlu said:

In my experience, the agent prepared the purchase and sale agreement and walked the documentation through the transfer process at the Land Department on the day of transfer.

Correct, so perhaps worth their 3-5% commission, however it's unlikley that Nok / Noi from the local mom and pop shop would assist with this....

Better to try and sell on Facebook marketplace first, that's all agents do anyway

1 hour ago, PJ71 said:

But are they involved with the transfer documentation and completion?

 

Not really. Their presence on the day of sale is more a matter of them securing their commission.

21 hours ago, PJ71 said:

mostly 5% here

 

way too much for what the majority of them do..... very little!

what is it you expect an agent to do?

 

Seems most of their job is to bring you a customer/ or locate a property... then they assist w/the negotiation and help point you towards obtaining the proper documents to assist the sale... 

18 hours ago, scubascuba3 said:

that's all agents do anyway

that is visible to your eye... do they not service both buyers and sellers seeking the property they want?

 

Do they not have premises that they must lease and phone bills to pay and expenses incurred just to keep their doors open? 

11 minutes ago, 1FinickyOne said:

what is it you expect an agent to do?

 

Seems most of their job is to bring you a customer/ or locate a property... then they assist w/the negotiation and help point you towards obtaining the proper documents to assist the sale... 

I expect them to come to your property and take pictures professionally, try going to one and seeing if they do that. They'll tell you to take your own and email to them,,,, that's pants.

 

I'd expect them to do everything, from showing till document transfer and payment.

1 minute ago, PJ71 said:

I expect them to come to your property and take pictures professionally, try going to one and seeing if they do that. They'll tell you to take your own and email to them,,,, that's pants.

 

I'd expect them to do everything, from showing till document transfer and payment.

I would expect the level of service to be as you hope only if you give them an exclusive on the listing, which with the way it works here is probably not a good idea. Back in your home country, they probably have multiple listing services... here it is a bit more wild west - - when buying, the agent seems to stay out of it, which I came to like, and the owners who can answer all questions, do the showing of the property... 

 

Nothing turns me off more than an agent exhilarating "This is the kitchen!!!!! And look, look, there is an oven!!!!"  

Real Estate business is a big sham in my opinion.  The commission structure is unfair and out of control especially in the U.S.  6% is standard in places like California what a joke for putting a house on multiple listing and making in many cases with the price of housing, $60,000 commission up. That is a year salary for many people but agents put in a few hours work.

 

Here and everywhere, they should get paid by the hour same attorneys.

I would try to negotiate as low as possible.  They put your property on a website, show it, and help with paperwork I doubt most put in 40 hours on any transaction.  That is about it making 60 to 100k for what?

A sham joke.

22 hours ago, PJ71 said:

mostly 5% here

 

way too much for what the majority of them do..... very little!

sell it yourself its really easy  ... advertise, take enquiries, show people through, negotiate the sale terms, write the offer, get them to sign it, get a deposit and start again when it falls over, why would you want an agent ???

As scubascuba3 mentioned, I would try listing on facebook marketplace, bahtsold, etc., first.

 

If you don't have the time or inclination to do it yourself, contact some of the top selling agents on facebook and negotiate what you feel is a fair deal, for just finding you a genuine buyer.

 

They you would need a lawyer anyway for the legal documentation and transfer etc., so perhaps find a reasonably priced one.

When I was last in the UK 8 years ago I sold 3 of my properties. The agent came round took high quality photos , prepared a detailed sales brochure for each property , applied and paid for energy certificates for each property , advertised in the local newspaper. When each property was sold the agent dealt with everything professionally. There fee was 1% off the final sales price. 

I put up a villa for sale in Phuket in the same year 2015 and the sales price if I may add was much much higher than all 3 of my UK properties.

An agent turned up on a motorcycle and didn't even get off it. He said you take some photos and send them to me. 

He then sent me a message saying he would be charging me 7% of the sales price.

Other agents I rang didn't even visit the villa at all and also asked me to take and send photos to them and were asking for 5%.

This is Thailand !

 

20 hours ago, PJ71 said:

But are they involved with the transfer documentation and completion?

Nope , they just think they can charge 5% for introducing a buyer and nothing else. The transfer , documentation and completion will either all have to be done by yourself or some overpriced lawyer.

20 hours ago, scubascuba3 said:

Better to try and sell on Facebook marketplace first, that's all agents do anyway

Yes exactly !

Agents can be so lazy also, such as photos leaving mops and dryers in the photo, no effort to make the place look the best it can, but yet still want the 5%

3%

    5% is usually standard but can sometimes be negotiated to get a deal to work or, perhaps, with higher-priced properties--not something I'm too familiar with.  Since late 2010, my partner and I have sold 22 properties in Thailand, so close to 2 properties a year.  Likely #23 before this year is done.   Some we sold ourselves, but most were sold with the assistance of an agent.   Selling that many in that time period meant they did not sit on the market for years and years, waiting for a buyer.  I, for one, am quite thankful for all the help we have received from agents over the years--some of our properties might still be sitting for sale without their help.  

     I've responded a number of times when posters have asked--or, in some cases, accused me of being an agent.  My ready answer is I am much too lazy--not to mention too impatient--to ever consider being an agent.   Do I want to do all the work to maintain a real estate website?  No.  Do I want to drive out to some property, using my gas, in the blistering heat, to take photos and get all the information on a property for sale?  No.  Do I want to then drive back to the office and spend my valuable time putting the property on the website, choosing photos and composing good, descriptive copy to help sell the property?  No.   Do I want to do advertising, send out emails, do monthly newsletters, and other marketing to help find buyers for my property listings?  No.  More work.  No, thank you.

    Do I want to make numerous calls trying to reach people to arrange a time convenient for all the parties involved, including the buyer and sometimes tenants, to show their property?  No.  Do I want to then drive the buyers around, again for free, for hours in the blistering heat, showing them properties they may or, more likely, may not buy?  No.  A thousand times no on that one!  

    I could go on--with all the work involved with handling deposits, contracts, explaining procedures to the client, the closing at the land office, etc., but you get the picture.   The bottom line, it's a lot of work--and certainly not for lazy, impatient me.  Something to remember.  With those 22 property sales I mentioned, lots of good agents did lots of work--for free--but only one, or in some cases two agents, earned any money from all the work they did on each property.

On 9/11/2023 at 5:08 PM, Etaoin Shrdlu said:

In my experience, the agent prepared the purchase and sale agreement and walked the documentation through the transfer process at the Land Department on the day of transfer.

I think you missed his point

 

In Thailand anyone that provides a buyer thinks of them as an agent and deserving

 

For instance you live next to me in a condo. My wife knows that your condo is for sale and suggests a buyer. The condo is purchased and my wife believes that you owe her 3%. She doesn't do any documentation. We might think of this in the United States is merely a finder's fee.

28 minutes ago, Jelli said:

I think you missed his point

 

In Thailand anyone that provides a buyer thinks of them as an agent and deserving

 

For instance you live next to me in a condo. My wife knows that your condo is for sale and suggests a buyer. The condo is purchased and my wife believes that you owe her 3%. She doesn't do any documentation. We might think of this in the United States is merely a finder's fee.

Yes, I may have missed the point on this one.

 

Mrs. Shrdlu and have declined such offers in the past as we expect proper services in exchange for our 3% commission.

 

i only know about this recently: foreigners can not work as property agent

not too sure if also apply to other area like insurance or car etc