Are There Reputable Any 3% Real Estate Agents Left ?

[KhunTao]

I am not aware of any reputable, first line real estate agency that has not increased its sales commission from 3% to 5% over the last 6 months.

Are there any left ? Please advise ...

Edited September 26, 2008 by KhunTao

[DonTron]

I got 162 Pattaya Realtors in my database and to my knowledge 92 of these have switched to 5% (probably more, but some of them go bankrupt within months so its hard to keep up)

It looks like both the reputable and the crooks have all switched to 5% - some might promise you 3% , they might even put it in the contract - and then they screw you for 5% anyway, so you better have a good lawyer unless you deal with the REBA realtors who are generally trustworthy and well organized.

And if you dont mind paying for quality, then there is only one realtor which I trust 100% - and thats Town & Country Property. There are others who are cheaper, but cheap in Thailand = trouble.

[silentnine]

I got 162 Pattaya Realtors in my database and to my knowledge 92 of these have switched to 5% (probably more, but some of them go bankrupt within months so its hard to keep up)

It looks like both the reputable and the crooks have all switched to 5% - some might promise you 3% , they might even put it in the contract - and then they screw you for 5% anyway, so you better have a good lawyer unless you deal with the REBA realtors who are generally trustworthy and well organized.

And if you dont mind paying for quality, then there is only one realtor which I trust 100% - and thats Town & Country Property. There are others who are cheaper, but cheap in Thailand = trouble.

is there a list anywhere of these agents. i've been trying to sell my house and being able to email the info to a few rather than hunting them down would be usefull ...

[Rimmer]

I got 162 Pattaya Realtors in my database and to my knowledge 92 of these have switched to 5% (probably more, but some of them go bankrupt within months so its hard to keep up)

It looks like both the reputable and the crooks have all switched to 5% - some might promise you 3% , they might even put it in the contract - and then they screw you for 5% anyway, so you better have a good lawyer unless you deal with the REBA realtors who are generally trustworthy and well organized.

And if you dont mind paying for quality, then there is only one realtor which I trust 100% - and thats Town & Country Property. There are others who are cheaper, but cheap in Thailand = trouble.

Yes I second that on Town and Country, Attentive and trustworthy, that's my experience with them.

I just sold a property in View Talay Villa's, I made up a sliding scale of commissions between 3% to 5% if they sold the property for more, then they earnt more. If the realter did not like the sliding scale terms then he did not have to sell the house, I simply told them it's my property if you want to handle it those are my terms if not goodbye.

In five weeks the house was sold, I got a good price and the realter earnt 4% in the end. Everybody happy except the realters who wanted 5% off the top for what ever price they deemed fit.

OK I was lucky, I had a first class property in a great location so was able to tell a couple of the so called 5% realters that I would not deal with them.

[thebounder]

Sallmanns still only charges 3%.

[PattayaParent]

Alan Bolton was 3% last time I used him.

Siam Properties?

A list of hose 162 estate agents would be very useful, possibly as a pinned topic list.

[Chopper]

My experience has always been to negotiate. Of course some Agents will want to charge 5% but if it is the case between losing a customer and accepting 3% then many will reduce their fee. Point blank I will not pay 5%!

Rimmer's approach is spot on:

‘‘If the realter did not like the sliding scale terms then he did not have to sell the house, I simply told them it's my property if you want to handle it those are my terms if not goodbye.’’

It would be interesting to hear the views from any Agents reading this thread.

[TJG]

My experience has always been to negotiate. Of course some Agents will want to charge 5% but if it is the case between losing a customer and accepting 3% then many will reduce their fee. Point blank I will not pay 5%!

Rimmer's approach is spot on:

''If the realter did not like the sliding scale terms then he did not have to sell the house, I simply told them it's my property if you want to handle it those are my terms if not goodbye.''

It would be interesting to hear the views from any Agents reading this thread.

I run a real estate company here in Pattaya. We charge 3% commission, although if clients wish to offer us more, as an incentive, of course we accept. That said, we stress that we will try just as hard to sell the client's property whether we are going to be paid 3% or more.

Personally, I think 3% commission is already generous. Last time I sold a house in the UK, I paid either 1% or 1.5%, I can't quite remember which, but in whichever case it was significantly less than 3%. If I was to sell a property here, I would not agree to pay 5% and I wouldn't expect my clients to pay something I myself would be unwilling to pay.

Something that other brokers should bear in mind is that they are charging 5% of the total price and not 5% of the seller's profit on a property. By way of example, if a seller bought a property for 4m Baht and sells it for 5m Baht, 5% commission would be 250,000 Baht or 25% of the seller's profit. Too much.

The reality is that some sellers will sign up for 5% when they list a property, but only feel the pain when they make the sale and pay out the commission. They are then left with a bad taste in their mouth and a feeling of having overpaid. To my mind, it is extremely important that clients for whom we sell houses feel, after the event, that we have done a good job for them at a fair price. In my opinion, word of mouth is by far and away the most important form of marketing. I would not want to put that at risk by insisting upon 5% commission, which I honestly believe would leave a majority of sellers thinking they paid too much commission.

Finally, the market is currently extremely slow for a variety of reasons that are too well known to go into here. Normally, when there is a downturn, one expects prices to fall. Certainly for most sellers, if they want to make a sale, they are being forced to drop their asking prices. So for brokers to be raising their prices at this time must feel like a real kick in the teeth. I, for one, think it is a poor business practice by those brokers doing it.

The answer is to force brokers to go back to 3% by refusing to do business with them if they insist upon more. If only brokers who charge 3% get listings, the buyers will quickly learn where to find the best properties. Without quality listings a broker won't make many sales at all and so market forces will force them to revert to 3%.

[RobertPattaya]

I’m a real estate broker from America living in Pattaya for about three years. I come from a family that’s been four generations in the real estate business; I’ve personally have been in the profession 17 years. I certainly have been enjoying the break here in Pattaya after years working putting transactions together. Unfortunately the way things look in America I will be here many more years before the correction there is completed.

In the field of sales there is a saying 20% of the salespeople do 80% of the business. If you have 10 salespeople generally speaking 8 will be lazy, marginally educated in the field and almost worthless; 2 will be skilled professionals that have learned their trade, they close a lot of deals and make things happen. The question is how do you find the 2 skilled professionals and stay away from the second-rate talent.

Regarding commissions a real estate transaction that will close has key elements; it has to be a good deal for the Seller, it has to meet the Seller’s needs, it has to be a good deal for the Buyer, it has to meet the Buyer’s needs and it has to be a good deal for the real estate Salesperson, the needs of the Salesperson have to be meet as well. Transactions that meet everyone’s needs close. Real estate transactions generally take some time to close so everyone has time to think, if the Seller, Buyer or Salesperson’s goals are not being realized problems will occur as the motivation to close will be lost. Evaluating and understanding the ultimate goals of the Seller and Buyer and meeting those needs are what make a successful real estate salesperson.

The most skilled people in any field make the most money; the amount of money someone makes defines the value of their service. I know many persons successful in the real estate business they are motivated to do the work because of the money. When I put a transaction together my number one concern is to meet the needs of my client because I know if I do I will get paid. However I know that there are a lot of properties on the market and I will do the work necessary to meet the needs of my client and my own as well. Ask yourself would you have the same motivation to take the job that paid you 120,000 baht as you would for the one that paid 200,000? You have to ask yourself as a Seller is it worth saving 80,000 baht not to have all that extra motivation focused on your property.

R….

[Bel Mondo]

Years ago in California, the standard commission was 6% for residential property and up to 15% for commercial property.

Point: An agreement to pay a fee is a contract and all terms and conditions are "negotiable".

So -- "NEGOTIATE"...Don't just accept what the real estate agent says he/she wants.

Another Point: Thai employment law--- a foreign national is not allowed to sell real estate. Work permits issued to people in sales roles show them as consultants giving advice to foreign nationals about buying in Thailand on a fixed salary.

They are NOT allowed to actually SELL property!

Any commission contract you sign with them and on which their name appears is illegal (of course they use their company's name -- but the court will look through this as will Thai Immigration).

If you sign a contract that is "illegal", that contract is void "ad initio" (void from the initial execution). This contract is UNENFORCEABLE. You cannot sue on it and YOU cannot be sued on it.

You therefore have all these persons not holding Thai Citizenship and who are violating the law over the "preverable" barrel. "Wanna" bet they will re-negotiate their commission? Just mention "Immigration" and watch them "squirm"!!!!!

Final Point: At the end of the day, pay the agent what you think he/she is worth. And now -- make sure you use an escrow to insure you are paid the money that is due you. Pattaya has "some" reputable real estate agents -- but you have do your due diligence to make sure you don't get hurt.

[JMS]

I'm a real estate broker from America living in Pattaya for about three years. I come from a family that's been four generations in the real estate business; I've personally have been in the profession 17 years. I certainly have been enjoying the break here in Pattaya after years working putting transactions together. Unfortunately the way things look in America I will be here many more years before the correction there is completed.

In the field of sales there is a saying 20% of the salespeople do 80% of the business. If you have 10 salespeople generally speaking 8 will be lazy, marginally educated in the field and almost worthless; 2 will be skilled professionals that have learned their trade, they close a lot of deals and make things happen. The question is how do you find the 2 skilled professionals and stay away from the second-rate talent.

Regarding commissions a real estate transaction that will close has key elements; it has to be a good deal for the Seller, it has to meet the Seller's needs, it has to be a good deal for the Buyer, it has to meet the Buyer's needs and it has to be a good deal for the real estate Salesperson, the needs of the Salesperson have to be meet as well. Transactions that meet everyone's needs close. Real estate transactions generally take some time to close so everyone has time to think, if the Seller, Buyer or Salesperson's goals are not being realized problems will occur as the motivation to close will be lost. Evaluating and understanding the ultimate goals of the Seller and Buyer and meeting those needs are what make a successful real estate salesperson.

The most skilled people in any field make the most money; the amount of money someone makes defines the value of their service. I know many persons successful in the real estate business they are motivated to do the work because of the money. When I put a transaction together my number one concern is to meet the needs of my client because I know if I do I will get paid. However I know that there are a lot of properties on the market and I will do the work necessary to meet the needs of my client and my own as well. Ask yourself would you have the same motivation to take the job that paid you 120,000 baht as you would for the one that paid 200,000? You have to ask yourself as a Seller is it worth saving 80,000 baht not to have all that extra motivation focused on your property.

R….

Robert is it not true that it takes the same time, effort and paperwork to sell any type of condo regardless of price. So why should you get a comission of 250000 on a 5mil condo and double that on a 10 mil one for doing the same amount of work. Would it be a lot fairer to charge a flat fee for all sales.

[nouvo135]

The initial question was

"Are There any Reputable Real Estate Agents Left ?" Edited the 3%

Thats the biggest concern......

And are they willing to refund their comission if the projects fail. There should be a contract clause that says they should. Otherwise its an easy affair to take your money (runaway away with it as well as has happened with some pattaya real estate companys before they handed it to client) and not care if the project is secure.

Many projects that are flat on their arse are still being marketed here. And there is an under current of knowledge that know these projects will fail but a total disregard for the facts just sign here sir.

[TJG]

Years ago in California, the standard commission was 6% for residential property and up to 15% for commercial property.

Point: An agreement to pay a fee is a contract and all terms and conditions are "negotiable".

So -- "NEGOTIATE"...Don't just accept what the real estate agent says he/she wants.

Another Point: Thai employment law--- a foreign national is not allowed to sell real estate. Work permits issued to people in sales roles show them as consultants giving advice to foreign nationals about buying in Thailand on a fixed salary.

They are NOT allowed to actually SELL property!

Any commission contract you sign with them and on which their name appears is illegal (of course they use their company's name -- but the court will look through this as will Thai Immigration).

If you sign a contract that is "illegal", that contract is void "ad initio" (void from the initial execution). This contract is UNENFORCEABLE. You cannot sue on it and YOU cannot be sued on it.

You therefore have all these persons not holding Thai Citizenship and who are violating the law over the "preverable" barrel. "Wanna" bet they will re-negotiate their commission? Just mention "Immigration" and watch them "squirm"!!!!!

Final Point: At the end of the day, pay the agent what you think he/she is worth. And now -- make sure you use an escrow to insure you are paid the money that is due you. Pattaya has "some" reputable real estate agents -- but you have do your due diligence to make sure you don't get hurt.

You are right in saying that real estate companies should only use Thai sales staff, as we do. To do otherwise is indeed illegal, even if an individual has a work permit (it does not and cannot cover a foreigner to be a sales executive). Operating as we do is perfectly legal. Foreign staff can accompany clients to viewings to help out, but there should always be a Thai sales executive there and it is the Thai individual who is the sales person.

Some buyers wish to speak to a foreigner for a variety of reasons, often just to give them confidence that nothing is being lost in translation and that is where I tend to come in. I will regularly speak to the buyers in the office, sometimes before viewings, sometimes after, sometimes both, but will then leave it to my very capable Thai sales staff (whom buyers and clients regularly go out of their way to compliment) to show them properties. Again to do this is perfectly legal.

In addition, any real estate company must be a Thai company, with a majority of Thai shareholders. Thus any contract entered into in the company name is 100% enforceable. So long as it is a legitimate Thai company, no court would interfere with the validity of its contracts just because it has some foreign shareholders or employs one or more foreigners.

[RobertPattaya]

JMS, you’re correct that every deal will require a different level of commitment to bring all parties to the closing table. Neither the Seller nor the Salesperson knows what type of work will be involved in selling the property when they sit down and enter into an agreement to sell. The amount of knowledge and skill involved in closing a particular transaction varies with each deal, a real estate transactions degree of difficulty is not necessarily linked to the sales price, and every transaction is unique. I’ve had incredibly challenging transactions that used excessive amounts of time and effort in the low end of the price arena.

I certainly enjoy negotiating with salespeople but I understand they’re physiology as well. I want the salesperson working for me to be sufficiently motivated in a manner that I receive a total focus and commitment on the work they’re performing for me. When a Salesperson is sitting at his desk with a stack of deals he’s working on closing and he has to make 20 or 30 phone calls I want him to grab my deal first while his mind is fresh not hours later when he’s worn out and moving to his lower reward work. Understanding the motivation of the sales force is one of the keys to success in selling property. Keep in mind commissions just like sale prices are never written in stone and can be renegotiated during the course of the sale contract negotiation if bottom line needs are not being realized.

The Seller has to have a transaction that will allow him/her to meet their objectives. Every property is a unique situation Sellers have to evaluate what type of marketing they feel will be in there best interest for that particular piece of property. Money (commission) is a motivator to the Sales force in any market. Sellers have to decide if the additional motivation that will be focused on their property is worth paying an additional 2%.

R….

[TJG]

JMS, you're correct that every deal will require a different level of commitment to bring all parties to the closing table. Neither the Seller nor the Salesperson knows what type of work will be involved in selling the property when they sit down and enter into an agreement to sell. The amount of knowledge and skill involved in closing a particular transaction varies with each deal, a real estate transactions degree of difficulty is not necessarily linked to the sales price, and every transaction is unique. I've had incredibly challenging transactions that used excessive amounts of time and effort in the low end of the price arena.

I certainly enjoy negotiating with salespeople but I understand they're physiology as well. I want the salesperson working for me to be sufficiently motivated in a manner that I receive a total focus and commitment on the work they're performing for me. When a Salesperson is sitting at his desk with a stack of deals he's working on closing and he has to make 20 or 30 phone calls I want him to grab my deal first while his mind is fresh not hours later when he's worn out and moving to his lower reward work. Understanding the motivation of the sales force is one of the keys to success in selling property. Keep in mind commissions just like sale prices are never written in stone and can be renegotiated during the course of the sale contract negotiation if bottom line needs are not being realized.

The Seller has to have a transaction that will allow him/her to meet their objectives. Every property is a unique situation Sellers have to evaluate what type of marketing they feel will be in there best interest for that particular piece of property. Money (commission) is a motivator to the Sales force in any market. Sellers have to decide if the additional motivation that will be focused on their property is worth paying an additional 2%.

R….

That said, the commission you pay to the company is not the commission that will be received by the sales person in question, nor is there necessarily any relationship between the two. Different companies pay different levels of commission to their sales staff. When interviewing sales staff who have worked for other real estate companies, I have been surprised at how many have told me that, notwithstanding promises made to them, they never even received any sales commission on deals they completed.

A good guide is to try to use an agency that has a low level of staff turnover. If staff are treated well, they are generally happy and thus less likely to leave. If staff don't get rewarded as well as they should they won't usually hang around too long.

[RobertPattaya]

TJG, various commission structures for salespeople based on their performance are a common practice in the real estate industry. If an individual is closing a lot of transactions he should receive a higher percentage of the commission. Real estate brokers would rather have a small piece of a big pie rather than a large piece of a small pie. If the salesperson is a low producer it would not make financial since to pay the same compensation level as would be paid to a high producer. I have never heard of a company that didn’t compensate there salespeople, were I come from you would instantly lose your license for such an act.

One of the standard operating procedures I use when I’m buying property is to always deal directly with the listing agent. I know from experience the less people involved the better. The listing agent knows the needs and can talk directly to the Seller making negotiations infinitely more efficient. The listing agent selling his own listing will not have to split the commission with another company so the motivation to give the deal a higher priority exists.

A gifted real estate salesperson is so valuable to a company that there is very little chance that the Broker would risk losing their services for one commission. I would imagine you were confronted with what is pervasive in almost every industry an employee that doesn’t produce much but excuses. In my field 8 out of 10 are not that talented, keep that in mind when you’re interviewing people to sell your property. Try dealing with just the listing agent on property that you’re interested in buying.

R….

[tattoodrob]

i have listed with a few real estate and dont see what i get for the percent they get!!!

also many times ive rung up to list and promised a callback to organise and dont hear a thing ever again......meaning i have to chase the agent to eventually give percent of my property hence they lose my business now and in the future,i have found a few of the agents have done this now. i would have thought the more properties you have on the books then better chance of a sale!

i would not give 5 percent if asked as then i would expect i have to put my price up to cover this fee then i have less chance of a sale.

i dont think anyone deserves 5 percent as the effort i have seen put in to make a sale doesnt warrrant that fee........how hard is it to list on there website with one or two pics. i havent seen much more than this,no pics in papers or even in there shop window !!! so wheres the effort,one agent only rung me up about 9 months after listing to see if i had sold.

also personally i dont think its a hard sales job to be honest....you show what you got and they go see it,if they like they put an offer.......the agent already knows what seller is willing to sell for so wheres the hard work. if they put in a too low offer then is up to seller to accept or not. robert i dont see where you have to be happy with the deal ,you get a fee whatever and in uk youre job is called a negotiator not sales man as thats all you do.....you are a middleman between the seller/buyer. try cold calling sales and producing leads from out of the air,its not going to work in real estate as someone not looking for a house is going to be persuaded to buy one.maybe you are a good negotiator and take care of your clients well which is basically what all sellers expect,im afraid its lacking here in a big way and may be because the thai real estate workers dont seem to be motivated to give good service like callbacks and taking an interest,keeping appointments etc. all you real estate farang owners should check up on your staff as ive been let down more times than i should have ....so i just try the next agent...and you lose a potential commission and future business,so what do you do.....put up fee 5 percent and lose more sellers.

i have had land for sale with agents and sold it thru a free ad in carrefour..........so how are you earning youre 5 percent????

its a shame real estate isnt sold like cars......look in a magazine/paper and deal yourself,no real need for an agent....maybe a solicitor yes. sorry,but i can do my own talking/negotiating.......all i need is potential customers which a real estate office can bring but that aint worth 5 percent as an advertising service for my property.....you are lucky more people dont see it like me or you might have to really work to make a living instead of a few phone calls between clients. im sure theres a bit more to it than that but hey not 5 percent of say a 10 mill property.......so how about a structure to your commission like 5 percent for under 1 mill,4 percent for 1 to 3 mill and 3 percent for above 3 mill. does that sound fair at all??? id rather give 1 percent for just being listed and having a pic in front window and think thats being generous.

why do you think people look down there noses at real estate workers,its because we never see how the commission is being realistically earnt......selling your house is one of the most stressful things in life,and we gonna pay 3 to 5 percent for that stress???

sorry to all those guys who really take care your customers but that is your job.....sort out your thai staff and you might get more respect.i know its not easy to do that but you really need to try calling them as a potential customer when your not in the office or send in a friend to see how he gets treated and followed up.....i for one aint gonna ring and ring and seem that i have to beg to get someone to come round and take a look and list my property then be happy to pay a big commission. end of rant

[norrona]

oh dear, it seems since my departure from real estate in pattaya that the quantity has risen but the quality is lacking, used to charge 3% when I was there and anything under 1 mil was 5%, main reason I left was all the chancers with their pick ups, a mobile phone and a thai girl-boyfriend and they were in the business...not even an office.

lot of chancers out there who have fallen into the job, I was one of them chancers at one point but the difference was I was guided by someone who had been in the business over 20 years and learned loads.

now back in the UK as people are saying....well back here you go into an estate agents and book your appointment up and make your own way there, it is regulated back here where by if you try to do a deal with a seller then the agents will always get their commission, very rarely do agents assist you on viewings, I bought a flat and had to tell the agent what to say on negotiations and he was someone who'd been doing it for over 10 years, they are also not as hungry back here, not till recent times and struggles anyway.

also if I were selling now in pattaya theres one thing I would be more worried about than 3 or 5%...i'd want to actually sell the thing, one other point in defence of the agents out there which would never have changed in all these years, the amount of buyers/sellers trying to cut the estate agent out by doing deals with themselves was outrageous and I can tell you they had no shame and would try and pass numbers in between each other right in front of you!

its a testing time selling your property as many will agree, so you can't keep all sides happy.

as for the estate agent being happy about the deal only when its completed and they are getting paid

[TJG]

TJG, various commission structures for salespeople based on their performance are a common practice in the real estate industry. If an individual is closing a lot of transactions he should receive a higher percentage of the commission. Real estate brokers would rather have a small piece of a big pie rather than a large piece of a small pie. If the salesperson is a low producer it would not make financial since to pay the same compensation level as would be paid to a high producer. I have never heard of a company that didn't compensate there salespeople, were I come from you would instantly lose your license for such an act.

One of the standard operating procedures I use when I'm buying property is to always deal directly with the listing agent. I know from experience the less people involved the better. The listing agent knows the needs and can talk directly to the Seller making negotiations infinitely more efficient. The listing agent selling his own listing will not have to split the commission with another company so the motivation to give the deal a higher priority exists.

A gifted real estate salesperson is so valuable to a company that there is very little chance that the Broker would risk losing their services for one commission. I would imagine you were confronted with what is pervasive in almost every industry an employee that doesn't produce much but excuses. In my field 8 out of 10 are not that talented, keep that in mind when you're interviewing people to sell your property. Try dealing with just the listing agent on property that you're interested in buying.

R….

Hey Robert, I appreciate what you are saying, but the reality is that many things don't work how you would think they would over here, and certainly differently to how they work in the West. My point is simply that different agencies pay different levels of commission to their sales staff, so as a seller you cannot be sure that the actual sales person will be getting more commission (and thus be more motivated) just because you agree to pay their employer 5% rather than 3%.

The other thing to bear in mind is that open agency is typical over here. There are very few sole agencies around, particularly for individual properties. Thus there will usually be many listing agents for any given property, each of whom can deal directly with the owner and receive full commission, rather than just one.

[wcr]

Just because an agent is a member of REBA ES does not make it a good agent. Infact REBA are the people who have been trying to drive up the commissions in Pattaya. There are some good REBA members, and Town & Country are one of them (a late joiner BTW). One of the leading lights in REBA certainly is not to be trusted and a google search on his name will bring up some interesting stories. Being a member of REBA just means you've paid up to join.

Sallmanns was a REBA member but left due to his disgust at what was happening. He did keep his prices to 3%, not sure if they still are at that level. There are many other agents who have kept thier commissions at 3%.

[nouvo135]

These "Clubs" REBA etc etc are just to keep out new comers to the market. Its a paid for "Club" nothing more nothing less.

They do they same in England....... Guild Of master Craftsman... etc etc. Its means nothing if the developer goes bust. Sorry mate we had the commission and there is the door you loose your money.

The Reason for REBA in MY opinion is to keep out the new guys setting up doing it cheaper so they can discredit them. BUT maybe the new guys do a better job..... i have dealt with one of the real estate agents who advertise or speak on this site and their attitude stank....... been here to long seen it done and would rather prop up their office table and rest there belly on it.

thats my opinion.

new blood breeds competition and REBA is set to stifle it. It's an old boys club.

[sjinthecity]

Just because an agent is a member of REBA ES does not make it a good agent. Infact REBA are the people who have been trying to drive up the commissions in Pattaya. There are some good REBA members, and Town & Country are one of them (a late joiner BTW). One of the leading lights in REBA certainly is not to be trusted and a google search on his name will bring up some interesting stories. Being a member of REBA just means you've paid up to join.

Sallmanns was a REBA member but left due to his disgust at what was happening. He did keep his prices to 3%, not sure if they still are at that level. There are many other agents who have kept thier commissions at 3%.

Are we talking about the one and only here….

http://www.notstickmanbangkok.com/Articles2008/ClaytonWadeSues.htm

[KhunTao]

Indeed, REBA acts as a cartel, putting pressure on its members to increase their commissions from a previous industry standard of 3% to now 5%. There have been a couple of agents who resisted for a period of time, however it looks like most, if not all of them, now tow the line ....

[wcr]

I am so glad that some other posters are backing up what I initially said. In another post I was positioned by some posters as "bitter" when I made a negative comment about a certain agent.

I worked as an agent in Pattaya for a period of time before publishing the Real Estate Magazine. No secrets here. As someone who was in the industry I feel more than able to comment about what I know and saw.

REBA was set up to higher the standards of Real Estate agents in Pattaya. Nothing wrong with that. Unfortuantly it has gone on from that to acting as a cartel as stated already. It wants to have a monopoly on business done in Pattaya. I know of agents who are REBA members telling walk in clients not to deal with non REBA members as thay are not to be trusted to do good business. What crap. There are a lot of good agents in Pattaya who choose not to belong to the REBA cartel as they want to keep thier independance and do not wish to be told how much commission to charge, what contracts to use and to be told how to run thier business by a businessman who thinks he knows best. The principle is fine, but in the usual Pattaya style it has been twisted to benefit certain people and businesses. And frankly has been highjacked by an individual who loves to spout off his opinions in the press where ever he can.

They tried to get me to back them and when I didn't they enmass pulled thier advertising from my magazine and tried to get me closed. Luckily I didn't and kept fighting back and I supported the independants views. I managed to survive but it was hard on occassions, especially when you loose 18 pages of advertisng!!!

[nouvo135]

REBA is without doubt an attempt to stifle competition and keep out people of less tha 2 years trading.

I have a friend who has a real estate business who wouldnt join.

As a matter of principle he never marketed Ocean 1 either. Lets see how many REBA agents did when the

I Bet ya all my life savings that none of them return the comission..to the buyers (or loosers)

[tellthetruth]

Indeed, REBA acts as a cartel, putting pressure on its members to increase their commissions from a previous industry standard of 3% to now 5%. There have been a couple of agents who resisted for a period of time, however it looks like most, if not all of them, now tow the line ....

The answer to all this confidence battering is for an indipendent government sponsored legitimate licencing authority to asses the whole business of real estate brokorage within Thailand and issue licences with gradings acording to the performance and creditability of any person, persons or company wishing to act on behalf of the unsuspecting public just like any where else in the world.

But Hey! is that snow I see falling on Budda Hill !!!! (TIT)

[torrenova]

I wouldn't pay a flat 3% to people to market a property. They can work on a sliding commission scale with stop limits or they can go jump. 5% is just potty.

I've seen contracts for some of the more prestigious condo blocks with hidden commissions and double prices as a sale through someone first to pocket a wedge. Some I know are good. Most are crooks.

[hullmonkey1]

I wouldn't pay a flat 3% to people to market a property. They can work on a sliding commission scale with stop limits or they can go jump. 5% is just potty.

I've seen contracts for some of the more prestigious condo blocks with hidden commissions and double prices as a sale through someone first to pocket a wedge. Some I know are good. Most are crooks.

A bit off topic but I have just read an article on the BBC's website. It states that the estate agents back in the uk are in big big trouble and many will go bust over the next 18 months.

One of the comments at the bottom of the pages creased me up

"Why the panic?! Estate agents don't have to worry if they lose their jobs as there are plenty of jobs out there stacking shelves and the qualifications required for these jobs are the same as for an estate agent."

[LennyW]

Indeed, REBA acts as a cartel, putting pressure on its members to increase their commissions from a previous industry standard of 3% to now 5%. There have been a couple of agents who resisted for a period of time, however it looks like most, if not all of them, now tow the line ....

The answer to all this confidence battering is for an indipendent government sponsored legitimate licencing authority to asses the whole business of real estate brokorage within Thailand and issue licences with gradings acording to the performance and creditability of any person, persons or company wishing to act on behalf of the unsuspecting public just like any where else in the world.

But Hey! is that snow I see falling on Budda Hill !!!! (TIT)

They would kind of need to get a reliable government sorted out first methinks!!

[Guderian]

One of the comments at the bottom of the pages creased me up

"Why the panic?! Estate agents don't have to worry if they lose their jobs as there are plenty of jobs out there stacking shelves and the qualifications required for these jobs are the same as for an estate agent."

Do you remember the Maureen Lipman adverts where she was always consoling her grandson (or was it a nephew?) about his crappy exam results: ", Oooh, you got an 'ology! You said you'd failed and you got an 'ology? You get an 'ology and you're a scientist..." There was a parody on this on some comedy show where she tells the kid, "Aw, never mind love, even if you don't get an 'ology, you can always become an estate agent!"

A relative of mine back in the UK is very much in that category, a successful estate agent without so much as an O-level to his name. He's nothing but a charming con-man, but people like him and like doing business with him. Personally, if he ever shakes my hand, I quickly check to make sure I've still got all my fingers.