Agents Commission For Selling Land

[rgs2001uk]

This comment has more to do with the OP's question than most answers posted. Just for your info, after being a licensed Realtor in California for many years, comission of sales of land was 10%. It usually took years to sell vacant land.

Sounds just like Thailand then doesnt it.

A quick Russian language course should have you sorted out in no time.

<deleted> does Kaliforneeya have to do with Thailand?

[BlackPuddingBertha]

Land office does conveyancing? Ridiculous. Lawyers do conveyancing, which in Thailand is know as due diligence. A competent Thai lawyer will complete DD in 48 hours for about 15,000thb.

Other agents posting on here seem to think that agents do this, not lawyers, and, as a result, they earn these high commission rates that are being discussed. You appear to be saying the opposite.

Personally I understand that if a buyer and a vendor wander into the Land Office with a few relevant documents and some cash to pay the taxes they can wander out again a bit later on having done the deal without any assistance from anyone, lawyer or not. As far I'm concerned that means that the Land Office does the conveyancing. Or that there is no conveyancing, if you prefer.

As for the rest of your comments, I neither know nor care whether your GF is a bar girl or not. As for your income, I have long suspected that agents here earn less per day than I earned in an hour before I retired. Seeing them roll up on motorbikes or on foot for a viewing gives one a clue about this.

But again, this is none of my concern. They chose to do what they do for their own reasons.

[manstr23]

I have been an agent and Broker for almost 40 years in Canada and coming to Thailand I had the "misfortune" to let my GF

(now wife) to try her luck and she did quite well. But I must concur with the people on the forum and the bad experiences they had.

Thai and Farang agents are mostly in it for a fast buck, are uneducated about real estate and have no ethics.

It is one of the reasons I am not in the business anymore. Any commission can be negotiated, the selling price should be your guide.

Man

[Locationthailand]

3% is going rate as already stated, Go for quick closure at the better price and offer 4.5%. Works for me and get's rid of the shoppers.

[rgs2001uk]

I have been an agent and Broker for almost 40 years in Canada and coming to Thailand I had the "misfortune" to let my GF

(now wife) to try her luck and she did quite well. But I must concur with the people on the forum and the bad experiences they had.

Thai and Farang agents are mostly in it for a fast buck, are uneducated about real estate and have no ethics.

It is one of the reasons I am not in the business anymore. Any commission can be negotiated, the selling price should be your guide.

Man

I have been an agent and Broker for almost 40 years in Canada

Oh and that qualifies you you to be an agent and broker in Thailand does it?

Ok here goes, please give me the rental price for a 2 million baht shop house in Bang Kapi Bangkok.

Please tell me how much income I should expect from my 5 million baht house in Bang Kapi Bangkok?

Many Thais are quite happy with their 5% return on property values each year, and rental income in their pockets, no questions asked, does it work the same way in Canada?

[BlackPuddingBertha]

Any commission can be negotiated,...

That is certainly true and not just in Thailand. Agents seem to think that just because they put a sign on the wall saying "x% commission" that it is written in stone or handed down by God. Or maybe they are just hopeful.

[Robert2006]

I have been an agent and Broker for almost 40 years in Canada and coming to Thailand I had the "misfortune" to let my GF

(now wife) to try her luck and she did quite well. But I must concur with the people on the forum and the bad experiences they had.

Thai and Farang agents are mostly in it for a fast buck, are uneducated about real estate and have no ethics.

It is one of the reasons I am not in the business anymore. Any commission can be negotiated, the selling price should be your guide.

Man

I have been an agent and Broker for almost 40 years in Canada

Oh and that qualifies you you to be an agent and broker in Thailand does it?

Ok here goes, please give me the rental price for a 2 million baht shop house in Bang Kapi Bangkok.

Please tell me how much income I should expect from my 5 million baht house in Bang Kapi Bangkok?

Many Thais are quite happy with their 5% return on property values each year, and rental income in their pockets, no questions asked, does it work the same way in Canada?

A Canadian Broker with 40 years’ experience is certainly qualified to sell real estate here in Thailand, if he wanted to work. There is little difference in any market if the listings are good they sell. If the

buyer likes the return or the property meets the need they buy.

It doesn’t matter where a property is located, if it throws off a 10% return while servicing a 20-30% percent expense ratio it will sell. A property purchased for 2 million Baht would have to rent for 21k baht a month to service a 20% expense ratio and throw off a 10% return.

[SGD]

I have been an agent and Broker for almost 40 years in Canada and coming to Thailand I had the "misfortune" to let my GF

(now wife) to try her luck and she did quite well. But I must concur with the people on the forum and the bad experiences they had.

Thai and Farang agents are mostly in it for a fast buck, are uneducated about real estate and have no ethics.

It is one of the reasons I am not in the business anymore. Any commission can be negotiated, the selling price should be your guide.

Man

I have been an agent and Broker for almost 40 years in Canada

Oh and that qualifies you you to be an agent and broker in Thailand does it?

Ok here goes, please give me the rental price for a 2 million baht shop house in Bang Kapi Bangkok.

Please tell me how much income I should expect from my 5 million baht house in Bang Kapi Bangkok?

Many Thais are quite happy with their 5% return on property values each year, and rental income in their pockets, no questions asked, does it work the same way in Canada?

A Canadian Broker with 40 years’ experience is certainly qualified to sell real estate here in Thailand, if he wanted to work. There is little difference in any market if the listings are good they sell. If the

buyer likes the return or the property meets the need they buy.

It doesn’t matter where a property is located, if it throws off a 10% return while servicing a 20-30% percent expense ratio it will sell. A property purchased for 2 million Baht would have to rent for 21k baht a month to service a 20% expense ratio and throw off a 10% return.

A simpler equation is whether it rents for 1% of the asking price. Thus a 2m property would need to rent for 20,000 baht a month.

[SGD]

I think 3% is already high even for a "proper" agent. In the UK you would rarely pay more than a couple of %.

Not sure you can compare the UK with Thailand. When I looked into placing the land with a commercial real estate agent it was 8%, PAID IN ADVANCE. I asked the ex for her share of half of the commission and was told to **** off. She seems to think she can walk away with half the sale price and I pick up all the costs. Oh dear is she in for one big surprise.

Unless she paid for half of it, why give her anything ?

A few years of not having to work as a housewife doesn't justify a property she could never have bought herself.

[HUAHIN62]

We buy and sell property. For a non agent selling its 3% and for an agent the best is to give your price you want and the agent adds whatever %.

[BlackPuddingBertha]

We buy and sell property. For a non agent selling its 3% and for an agent the best is to give your price you want and the agent adds whatever %.

Dont say "it is 3%" say "agents would like 3%".

All these percentages being bandied about are just starting points for negotiation. Just like property prices in fact.

[BlackPuddingBertha]

A simpler equation is whether it rents for 1% of the asking price. Thus a 2m property would need to rent for 20,000 baht a month.

This is way over the top. Less than half that figure would be much closer to reality.

I pay 4% per year as rent.

[Robert2006]

A simpler equation is whether it rents for 1% of the asking price. Thus a 2m property would need to rent for 20,000 baht a month.

This is way over the top. Less than half that figure would be much closer to reality.

I pay 4% per year as rent.

The fact that you’re paying a 4% yield on the value of the property you rent represents that you have negotiated yourself a good value and your landlord has not. However what you are paying for rent or even what the common rental returns are in the area is not the point, we are discussing what constitutes an acceptable yield on a real estate investment. It is really a subjective discussion as each investor has their own number that satisfies their need.

If an investor is happy with a 4% return that would be very easy to produce, I would agree the market here is full of these lower yielding investments. Actually it’s uncommon to find high yielding investments they require a lot of work to find nonetheless they are always there if an individual is willing to but the work into finding the properties.

I’m in Pattaya; I’ve not met an agent here that understands how to do the work involved in digging out these types of investments for their clients, I’m sure these agents exist there are always a few in every market. The agents I’ve met here are not well trained and focused principally on their commission not satisfying the

goals of the Buyer and Seller. It would take very little work to produce a 4% yield in this market; however the better investors / agents know how to find and close the higher yielding investments

[rgs2001uk]

^^^^^, I am not going to argue with your post above, because a lot of it is true.

I live in the Thai world and see what properties are being rented for, they certainly aint returning 10 or 12%, too be honest 6-8% at best, usually 5%.

I see it on these very forums too many times, guys claiming to be real estate experts from someplace like Florida, well this is Thailand, what works in Florida doesnt apply here.

The markets will dictate the rent you receive, not some dummies guide for realtors rule book.

2 million baht townhouse goes for 6-8,000 baht per month.

I see these new condos empty, the owner thinks he can BTL and let some mug pay his morgage for him.

Take a look at some of the adverts in the classified section of TV, only some fresh off the plane new guys would pay the prices being asked.

[Chao Lao Beach]

3% is standard around here.

Print out a simple paper where the potential customer writes their name and the name of the lead where they found the property.

I have a mate who sold a place and about 10 people were claiming the 3%, it got ugly by the sounds of it.

[Robert2006]

^^^^^, I am not going to argue with your post above, because a lot of it is true.

I live in the Thai world and see what properties are being rented for, they certainly aint returning 10 or 12%, too be honest 6-8% at best, usually 5%.

I see it on these very forums too many times, guys claiming to be real estate experts from someplace like Florida, well this is Thailand, what works in Florida doesnt apply here.

The markets will dictate the rent you receive, not some dummies guide for realtors rule book.

2 million baht townhouse goes for 6-8,000 baht per month.

I see these new condos empty, the owner thinks he can BTL and let some mug pay his morgage for him.

Take a look at some of the adverts in the classified section of TV, only some fresh off the plane new guys would pay the prices being asked.

You are correct it is very common to yield 4-8% here in this market and uncommon to find yields in the 10-12% range. But that is not just a Thai market condition it exists in most markets around the world, it’s not easy to find those yields.

To produce a portfolio of high yielding real estate investments I’ve only seen it accomplished one way, the investor must be immersed in the market looking at property every day, it’s a numbers game. It’s a commitment that requires a lot of time and work. There may only be a few opportunities in a year.

Nevertheless if the investor is persistent sooner or later a property will present itself in which the Seller’s objective is fulfilled by selling at a price that works for the investor and both parties will have their

goals satisfied by the sale.

[BlackPuddingBertha]

To produce a portfolio of high yielding real estate investments I’ve only seen it accomplished one way, the investor must be immersed in the market looking at property every day, it’s a numbers game. It’s a commitment that requires a lot of time and work. There may only be a few opportunities in a year.

Nevertheless if the investor is persistent sooner or later a property will present itself ......

It seems to me that you are saying that if you wait for some totally desperate vendor you will be able to pick up some property for half the average asking price. I agree, but you can't go from there and suppose that a normal return from the average property is going to be 12%. It isn't.

I suspect that you are only going to get 12% if:

1) you buy at a huge discount to the average asking price

and

2) you find a stupid tenant

Not exactly an everyday occurrence.

[Robert2006]

To produce a portfolio of high yielding real estate investments I’ve only seen it accomplished one way, the investor must be immersed in the market looking at property every day, it’s a numbers game. It’s a commitment that requires a lot of time and work. There may only be a few opportunities in a year.

Nevertheless if the investor is persistent sooner or later a property will present itself ......

It seems to me that you are saying that if you wait for some totally desperate vendor you will be able to pick up some property for half the average asking price. I agree, but you can't go from there and suppose that a normal return from the average property is going to be 12%. It isn't.

I suspect that you are only going to get 12% if:

1) you buy at a huge discount to the average asking price

and

2) you find a stupid tenant

Not exactly an everyday occurrence.

A Seller that is motivated by something other than purely money is required; it is not an everyday occurrence, that’s why they require more effort to find. In my experience a Seller in that position is not stupid or desperate but merely has a goal to achieve, maybe he has a better use for the money and needs it right away.

What I’m saying is if you persistently work toward the goal of finding higher yielding real estate investments it is achievable in Thailand or any country. Thailand is inherently not any different than any other country, there are always motivated Sellers looking to sell but the Investor must be willing to put in the hours to find them.

If you have the diligence to go out and look at 300 properties, talk with the Sellers to understand what they are trying to achieve, take pictures of the properties, and maintain a database of the important information so you can stay in touch with the owners, I think you would run into some good deals. You could look at 4 units per day and view that amount of property in 75 days.

Most Investors won’t do that, it’s the ditch digging of the real estate business, there may be better ways to do it but in my experience that’s the way to find the best property deals.