Do Estate Agents Work For Their Commission ?

[SwaziBird]

I am in the process of selling my condo here in central Chiang Mai and am astonished to find how totally disinterested most of the agencies are in providing actual assisting in the sale. I am pleased to say that I have found those agencies which are assisted and advised by farang persons DO NOT adopt the same attitude.

Here are some of the typical responses I have received from most others including Chiang Mai's "biggest" agency.

* Yes, we will list your property on our web-site.

* Do you have photos and can you send us detailed description of your property ?

* How much do you want for the property ?

* Do you know how much the transfer fees and duties etc. will be ?

* Our commission will be 3% of the sale price

* If you do not have photos we will send a photographer to take pictures

* No, we do not usually come around to familiarise ourselves with your property.

* If someone enquires about the property from the web-site we will bring them around to inspect yours

It would seem that the agencies are quite prepared to offer little or no advice on a fair market value at which to list the property - only the caveat to be careful not to price it ( your decision) too high because it might sit on the books for too long. They do not wish to bother to inspect the property to familiarise themselves with its better points. Presumably they might bring a prospective purchaser into your premises and just stand there and view it for the first time themselves.

I have been told by a number of persons that the agencies do absolutely nothing for them over very many months, except for the listing.

Of more concern, I have been told by more than one Thai person ( including a well-informed medical specialist) that some agents are known to hike the price above that which you are seeking. How and why this would or could be done eludes me somewhat ( although I do have suspicions).

Now I know this is a whinge and I do try to avoid doing that - but I really need help. I would ask members whether they can recommend any decent, thinking, co-operative and well organised agencies in Chiang Mai who are prepared to get their act together and actually do some work for their commission rather than just charge a substantial fee for a listing on their web-site.

Thank you for your help.

Cheers

[kjhbigv]

When we sold our house, we used an agent, one viewing in 6 months. From the sign stuck on the outside, many many calls and the sale came from that.

I appreciate yours is an apartment, so not really an option, but might be helpful for others.

[SwaziBird]

Should mention that I have been advised by persons who have actually been subjected to this surprise sprung by certain agencies.

"We will take you out to inspect properties but we will have to charge you for the conveyance." !!!!!

[letitbe]

in 15 + years of doing condos in BKK Pattaya Chiang mai and Hui Hin I have not come across a proper agent even out of hundreds I must have used. basically they dont have a clue and have typical Thai attitude of up to you. Most thais put silly prices on property and only sell at a proper price when they get desperate. They also put price up if it does not let or sell to make up for their loss. Just get it listed with every agent you can find and dont expect them to do much. Even though they are totally useless you never know who might walk through their door or view their websites and yours might be if correctly priced just the one they want. However in 15+ years ive seen almost identical units being sold for double of same other units. People get off plane and think wow its so cheap even if its double the real value. I did 14 years ago but then you could buy condos in BKK for real peanuts and 1/4 or 1/5th price they go for now in BKK. That was after Asian crash and good units were going in BKK for 1 million baht which a few years before were 4 million and now are back to around 4 million. Same unit in London then would have been 10 times the price.

[cmbe]

What I saw, heard and have had experience by myself, the estate agents do work for their commission but they work in their way, they have to do some work if nobody come to buy or rent their properties, where they can find their main income.

In Thailand everybody can become a estate agents, there are not act or specific law about estate agent but in Singapore has act that foreigner can not be estate agent, Thailand you can do it.

I found in a newspaper, almost 50% of all Thai peoples (65 millions peoples) are estate agent or relate with estate agent action because it is a job/bussiness that you do not need to invest except cost for take some pictures and gasoline, there are also many peoples get 3% commission without to do anything just say " this land /condo/house the owner want to sell" the rest let the owner and the buyer talk together.

Now the most of estate agents has their own website, it mean they look for properties to put in their list and then work with e-mail, telephone, friend of friend of friend...

but when demand less than supply they have more work for seller but no buyer or renter.

Before, I want to rent/buy something and a man from an estate agent send me the detail what I want to know, send me many pictures, appointment with the owner, call the owner to talk about details.

I contacted this agent by myself, they did not come to knock my door and ask me, Do you want to buy or rent a condo/house/land?, this is the point that they have to wait until some people interesting in their properties list and begin to ask about detail.

In 2015 when AEC (Asean Economic Community) open, all estate agents will have a high competition (may be less thing to do) because other countries in AEC can come to Thailand and have freedom to do their job, now they are talking about an act to be legislation about estate agents ,

people who what to become a estate agent have to study (university) in relate major with it, if not have to study specific course about estate agent, so in that time not everyone can be estate agent.

[Thailand]

From my experience In general "estate agents" here in Thailand are a waste of space and do little if anything to justify their commissions.

We are listed with 3 (1Thai ownership, 2 farang) since the end of last year not one has sent a potential buyer around to even view our house.

The sign outside our house has attracted the most attention and we even thought we had sold a few weeks ago but were pipped at the post!

[kaptainrob]

Looking for house to buy or rent/buy we found Jasmine properties (adjacent MeeChok Plaza) very professional, most others a dead loss.

Narrowing our preferred location to Wang Tan & Mae Hia we've found driving up up and down every soi looking for signage is best.

Many websites respond with an email or phone call though one BIG thai one (dd) has never called back (3 inquiries made).

[binjalin]

They are all poor and unprofessional - all of them and I have used them ALL at some stage

edit: but obviously some are better than others perfect homes and elite stand out

[binjalin]

Looking for house to buy or rent/buy we found Jasmine properties (adjacent MeeChok Plaza) very professional, most others a dead loss.

Narrowing our preferred location to Wang Tan & Mae Hia we've found driving up up and down every soi looking for signage is best.

Many websites respond with an email or phone call though one BIG thai one (dd) has never called back (3 inquiries made).

that's the best way - drive around - be careful of Wang Tan as there are TONS of soi dogs around

[Thailand]

Looking for house to buy or rent/buy we found Jasmine properties (adjacent MeeChok Plaza) very professional, most others a dead loss.

Narrowing our preferred location to Wang Tan & Mae Hia we've found driving up up and down every soi looking for signage is best.

Many websites respond with an email or phone call though one BIG thai one (dd) has never called back (3 inquiries made).

that's the best way - drive around - be careful of Wang Tan as there are TONS of soi dogs around

Rubbish!

[kaptainrob]

that's the best way - drive around - be careful of Wang Tan as there are TONS of soi dogs around

I'd heard that before but apparently they've rounded 'em up. You'd be flat out finding any dogs roaming loose, it's a very peaceful clean and green mooban.

[eyecatcher]

We are listed with 3 (1Thai ownership, 2 farang) since the end of last year not one has sent a potential buyer around to even view our house.

The sign outside our house has attracted the most attention and we even thought we had sold a few weeks ago but were pipped at the post!

I would not want to defend estate agencies but if there is no one out there wanting to buy then they cannot send anyone round.

Those who do walk through the door may be viewing many properties but yours may just be overpriced.

Its like tourists in low season..cannot just magic them in.

For me it just reinforces the old adage not to buy property here unless you are prepared for some suffering at moving time.

[keo]

Looking for house to buy or rent/buy we found Jasmine properties (adjacent MeeChok Plaza) very professional, most others a dead loss.Narrowing our preferred location to Wang Tan & Mae Hia we've found driving up up and down every soi looking for signage is best.Many websites respond with an email or phone call though one BIG thai one (dd) has never called back (3 inquiries made).

Been looking for a place to rent for the last couple of weeks, and had similar experiences. You'd think some of the agents don't want the commission. I've also found that a lot of the agents seem more interested in chatting with the landlords than trying to sell the house to the potential tenant.

I've been surprised at how little bang for your Baht you get these days. Seems like 10,000 B/m will get you a tatty unfurnished box with very little garden to speak of. One agent claimed that the floods in BKK last year has reduced the amount of rental properties on the market and pushed prices up. Any truth in this you think?

Wang Tan is indeed a nice housing estate.

[stuartd1]

Although I have barely put my toe in the rental market here I found Jasmine homes fairly accomodating. What is weird is that when chatting to local acquaintaces, they all seem to know of the "ideal" place, then a part time estate agent turns up in a clapped out car and shows you a number of places that don't match at all, then start pestering you on the phone!

Never mind, back in October to start looking seriously.

[YoungBrit]

A property is only worth what someone is prepared to pay for it. So if its sitting there and noone is even looking at it, let alone buying it then surely it is not worth the asking price.

[funcat]

A property is only worth what someone is prepared to pay for it. So if its sitting there and noone is even looking at it, let alone buying it then surely it is not worth the asking price.

...maybe there is no one to look ?...

[YoungBrit]

A property is only worth what someone is prepared to pay for it. So if its sitting there and noone is even looking at it, let alone buying it then surely it is not worth the asking price.

...maybe there is no one to look ?...

Surely there wouldn't be so many estate agents out there if there was no one looking for property?

[funcat]

A property is only worth what someone is prepared to pay for it. So if its sitting there and noone is even looking at it, let alone buying it then surely it is not worth the asking price.

...maybe there is no one to look ?...

Surely there wouldn't be so many estate agents out there if there was no one looking for property?

I don't know about RE agents,but there is not to many buyers out there (well,Thai buyers are still buying,but that's not what we are talking about here)...

[YoungBrit]

Why does it not include Thai buyers? Why are we not talking about that here?

[Thailand]

Why does it not include Thai buyers? Why are we not talking about that here?

Correct. Buyers are buyers.

[funcat]

Why does it not include Thai buyers? Why are we not talking about that here?

Correct. Buyers are buyers.

I don't think that average Thai buyer will look for second hand house "owned" by farang....at least no one ever contacted me before,but I don't advertize on Thai websites,so maybe that's why...

[binjalin]

that's the best way - drive around - be careful of Wang Tan as there are TONS of soi dogs around

I'd heard that before but apparently they've rounded 'em up. You'd be flat out finding any dogs roaming loose, it's a very peaceful clean and green mooban.

haha Iived there for quite awhile... up to you!!! but...

it's not the feral dogs that are the problem in Ban Wang Tan it's those owned by Thais who let them out but... if you know best

[kjhbigv]

Why does it not include Thai buyers? Why are we not talking about that here?

Correct. Buyers are buyers.

I don't think that average Thai buyer will look for second hand house "owned" by farang....at least no one ever contacted me before,but I don't advertize on Thai websites,so maybe that's why...

We sold our second hand house to (and 99% of the viewings were Thai's) an average Thai.

[binjalin]

Why does it not include Thai buyers? Why are we not talking about that here?

Correct. Buyers are buyers.

I don't think that average Thai buyer will look for second hand house "owned" by farang....at least no one ever contacted me before,but I don't advertize on Thai websites,so maybe that's why...

We sold our second hand house to (and 99% of the viewings were Thai's) an average Thai.

me too - I sold to a Thai

[justcruisin]

To the OP,

When you said "typical response's" from agents when listing your property, are you actually serious that they asked the following.

Quote

* Yes, we will list your property on our web-site.

* Do you have photos and can you send us detailed description of your property ?

* How much do you want for the property ?

* Do you know how much the transfer fees and duties etc. will be ?

* Our commission will be 3% of the sale price

* If you do not have photos we will send a photographer to take pictures

* No, we do not usually come around to familiarise ourselves with your property.

Unquote

Not trying to be sarcastic but from what you have stated that sounds like one of the better agents. above board and establishing facts before listing. At least they will negotiate on the price if they have an interested buyer.

This upsell price that you mentioned is basically unheard of unless you sign and witness two contracts. Can you provide proof to substantiate your claim.

I have a lot of experience with agents here as well and have found the average Somchai on the corner is one of the worst scammers and crooks. There is R.E licensing and a very large Goverment dept who oversees all property transactions.

Lastly there is no cost to list or market a property here in CM with the big agency you referred to,contary to what you stated. If I am wrong I request you to PM me with details.

Disclaimer,I have no financial interest in any Company based in the Kingdom of Thailand.

[jaideeguy]

Thai R.E. agents only connect the buyer and seller and have no training, qualifications, responsibility or obligations beyond that, so why should they??

I've done it on several occasions and let the Thai wife do the connection and get the 3% as pocket money.

Not at all like in the west, where the agent actually represents the buyer or seller and makes sure all goes well.

[funcat]

Why does it not include Thai buyers? Why are we not talking about that here?

Correct. Buyers are buyers.

I don't think that average Thai buyer will look for second hand house "owned" by farang....at least no one ever contacted me before,but I don't advertize on Thai websites,so maybe that's why...

We sold our second hand house to (and 99% of the viewings were Thai's) an average Thai.

Can you share some details,how did you get those people to find you?PM me if you want...Thanks.

[Thailand]

that's the best way - drive around - be careful of Wang Tan as there are TONS of soi dogs around

I'd heard that before but apparently they've rounded 'em up. You'd be flat out finding any dogs roaming loose, it's a very peaceful clean and green mooban.

haha Iived there for quite awhile... up to you!!! but...

it's not the feral dogs that are the problem in Ban Wang Tan it's those owned by Thais who let them out but... if you know best

If you feel that you have a problem with dogs in BWT I trust you have advised the office accordingly?

[SwaziBird]

To the OP,

When you said "typical response's" from agents when listing your property, are you actually serious that they asked the following.

Quote

* Yes, we will list your property on our web-site.

* Do you have photos and can you send us detailed description of your property ?

* How much do you want for the property ?

* Do you know how much the transfer fees and duties etc. will be ?

* Our commission will be 3% of the sale price

* If you do not have photos we will send a photographer to take pictures

* No, we do not usually come around to familiarise ourselves with your property.

Unquote

Not trying to be sarcastic but from what you have stated that sounds like one of the better agents. above board and establishing facts before listing. At least they will negotiate on the price if they have an interested buyer.

This upsell price that you mentioned is basically unheard of unless you sign and witness two contracts. Can you provide proof to substantiate your claim.

I have a lot of experience with agents here as well and have found the average Somchai on the corner is one of the worst scammers and crooks. There is R.E licensing and a very large Goverment dept who oversees all property transactions.

Lastly there is no cost to list or market a property here in CM with the big agency you referred to,contary to what you stated. If I am wrong I request you to PM me with details.

Disclaimer,I have no financial interest in any Company based in the Kingdom of Thailand.

Hello Justcruisin,

I'm a little uncertain about whether you're trying to help me with advice or just challenge me.

Since you have laid down certain challenges I will address those firstly.

Yes, I am absolutely serious about my remarks and they are typical of the responses I have received from a number of agents. I really wouldn't have posted them if I wasn't.

The point I was trying to emphasize was this: without the agency sending someone to inspect the property, familiarise themselves with its features and take some representative photographs as well as to garner information and discuss a reasonable asking price for the property, the question might be fairly asked " what service is the agency actually performing for it's commission ?"

If I understood your remark about the agent being the party to negotiate a price with the prospective buyer, I have never considered this to be appropriate. Surely the asking price should be discussed and arrived at between the seller and the agent with room for offers to be presented to the seller.

I have not had previous experience with estate agencies in Chiang Mai so do not know of the 2 signed contracts you refer to regarding the "upsell price" (a term with which I am, likewise, unfamiliar). I simply don't understand what it is you are requesting me to substantiate or to elucidate, i.e. the "claim" I have made that you believe is "totally unheard of".

You conclude your posting by claiming that I have stated that there is a cost attached to listing or marketing a property by the "big agency " which I had referred to in my posting. I never said anything remotely like that. None of them have even suggested that to me. So there is no need for me to PM you with details.There are none.

I have submitted my reply to you in the hope that any misunderstandings/misinformation is clarrified for the forum readers.

If you have tried to be helpful and I have, rather, misconstrued your challenges then I wish to thank you.

Cheers.

P.S. In the end I was asking for anyone who had positive, helpful service from any Agency to please share that information.

[justcruisin]

To the OP,

When you said "typical response's" from agents when listing your property, are you actually serious that they asked the following.

Quote

* Yes, we will list your property on our web-site.

* Do you have photos and can you send us detailed description of your property ?

* How much do you want for the property ?

* Do you know how much the transfer fees and duties etc. will be ?

* Our commission will be 3% of the sale price

* If you do not have photos we will send a photographer to take pictures

* No, we do not usually come around to familiarise ourselves with your property.

Unquote

Not trying to be sarcastic but from what you have stated that sounds like one of the better agents. above board and establishing facts before listing. At least they will negotiate on the price if they have an interested buyer.

This upsell price that you mentioned is basically unheard of unless you sign and witness two contracts. Can you provide proof to substantiate your claim.

I have a lot of experience with agents here as well and have found the average Somchai on the corner is one of the worst scammers and crooks. There is R.E licensing and a very large Goverment dept who oversees all property transactions.

Lastly there is no cost to list or market a property here in CM with the big agency you referred to,contary to what you stated. If I am wrong I request you to PM me with details.

Disclaimer,I have no financial interest in any Company based in the Kingdom of Thailand.

Hello Justcruisin,

I'm a little uncertain about whether you're trying to help me with advice or just challenge me.

Since you have laid down certain challenges I will address those firstly.

Yes, I am absolutely serious about my remarks and they are typical of the responses I have received from a number of agents. I really wouldn't have posted them if I wasn't.

The point I was trying to emphasize was this: without the agency sending someone to inspect the property, familiarise themselves with its features and take some representative photographs as well as to garner information and discuss a reasonable asking price for the property, the question might be fairly asked " what service is the agency actually performing for it's commission ?"

If I understood your remark about the agent being the party to negotiate a price with the prospective buyer, I have never considered this to be appropriate. Surely the asking price should be discussed and arrived at between the seller and the agent with room for offers to be presented to the seller.

I have not had previous experience with estate agencies in Chiang Mai so do not know of the 2 signed contracts you refer to regarding the "upsell price" (a term with which I am, likewise, unfamiliar). I simply don't understand what it is you are requesting me to substantiate or to elucidate, i.e. the "claim" I have made that you believe is "totally unheard of".

You conclude your posting by claiming that I have stated that there is a cost attached to listing or marketing a property by the "big agency " which I had referred to in my posting. I never said anything remotely like that. None of them have even suggested that to me. So there is no need for me to PM you with details.There are none.

I have submitted my reply to you in the hope that any misunderstandings/misinformation is clarrified for the forum readers.

If you have tried to be helpful and I have, rather, misconstrued your challenges then I wish to thank you.

Cheers.

P.S. In the end I was asking for anyone who had positive, helpful service from any Agency to please share that information.

I was trying to be helpful as well as challenging, there is scope for huge improvement in the local RE industry, If i knew a complete one stop solution or agent I would have offered it to you.

The system here is vastly different to our more familiar western country agents. There doe's not seem to be any valuation system to evaluate the true value of property, rather whatever the seller wishes to sell for. In saying that I think it would be prudent to match the price per square meter that similar units in you condo block sell for and go to any agent with your information of your building.

Another problem is that at any given time, the bigger agents may have several thousand listings, so I wouldn't expect the front office reception or the photographer person to be able to provide valid valuation advice.

I may stand corrected but as you stated in the last sentence of your original post....

Quote "actually do some work for their commission rather than charge a substantial fee for a listing on there website"

but now refute that with quote "I have never said anything like that"

I would like to establish if there are agents who ask for an upfront fee to list a property.

Good luck with the sale, you may need it !