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Pattaya Estate Agents, money for old rope, Time to start Owners Co-Ops


dotpoom

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"Is it not time owners got together and started up their own co-op shops....like farmers had to do to sell their produce and not be held to ransom by fixed prices or commissions. That way both the owner and the buyer would be winners...owners could sell their property more cheaply without having to factor in a 5% commission...."

What's the difference between your idea and simply posting on a forum like TV classified, for sale by owner?

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In reply to the two above questions.........What I mean by Co-Ops are...Co-Op Real Estate Offices (or shops) situated in the High Street just like Real Estate Agents operate now and would operate in exactly the same way except they would be owned by the property owners themselves....thus cutting out the "Middle Man"......so there would be no 5% commission. Just a small percent to cover the running expenses like rent, websites and the Thai staff Etc., etc., etc.,

I think I would also be correct in thinking that most properties are bought and sold through a high street office. I doubt very much if a person coming to Thailand and wishing to buy a property here would first think of looking for a forum to find a property,.Is it not much simpler to do it the traditional way by browsing the the real estate shop windows?

Edited by dotpoom
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It's the same around the globe. Why you expected real service and caring here in Thailand, from Farang or Thai "agents" is beyond me. With the internet and so much free advertising I'm frankly surprised people even use untrained unprofessional unqualified and of course people who only care about their "comission" in the first and especially, second place. There is no MLS in Thailand I"m aware of and certainly no rights to said "comission" as in ability to block a closing.

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In reply to the two above questions.........What I mean by Co-Ops are...Co-Op Real Estate Offices (or shops) situated in the High Street just like Real Estate Agents operate now and would operate in exactly the same way except they would be owned by the property owners themselves....thus cutting out the "Middle Man"......so there would be no 5% commission. Just a small percent to cover the running expenses like rent, websites and the Thai staff Etc., etc., etc.,

I think I would also be correct in thinking that most properties are bought and sold through a high street office. I doubt very much if a person coming to Thailand and wishing to buy a property here would first think of looking for a forum to find a property,.Is it not much simpler to do it the traditional way by browsing the the real estate shop windows?

Who would 'staff' said offices.

If it was the 'seller' of the property ... they'd need a work permit.

Farming Co-Cps work because the same people come back year after year to sell their produce.

Farang sells his property ... won't see him again for dust!

Am I missing anything?

OH yes ... does anyone know of this working in the West?

.

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It's the same around the globe. Why you expected real service and caring here in Thailand, from Farang or Thai "agents" is beyond me. With the internet and so much free advertising I'm frankly surprised people even use untrained unprofessional unqualified and of course people who only care about their "comission" in the first and especially, second place. There is no MLS in Thailand I"m aware of and certainly no rights to said "comission" as in ability to block a closing.

It has not been my experience that agents are the same all over the world. When I sold my house in my home country before coming here to retire I was treated with the highest respect by the agents, even brought out to dinner in an effort to get my custom. Of course there was a perfectly logical explanation for this....once you signed a contract with an agent....he had the sole right to sell your house (for whatever period you signed with him for) you could not give it to as many agents as you wished. In fact I think I liked that system better than the one here. He usually called in person to me on his way home in the evenings to fill me in on how things were developing, how much interest was being generated, what steps he was taking to promote the property etc.,and if he had any suggestions as to how to improve my chances of a sale he would pass them on. And when he showed up with a potential customer...it was like observing "poetry in action" He'd have so many positive things to say about the house that I would joke with my wife " After listening to him I think I'll buy the house myself". What I'm saying is he would put his heart and sole into getting a result, he could sell sand to the Arabs. And let me tell you something else....most other agents were the same as himself.....they had to be good to survive.....all that for 1 and 1/2 percent. Of course the prices were higher there but you "cut your cloth according to your measure"

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Another agent bashing thread...OK....go rent an office in the high street for location...rent in the region of 20,000 a month. Set up a good website with a reputable company, 40,000 plus 8,000 a year, Thai staff 2 x 9,000 salary each per month plus com for their listings. Work permit and visa costs for each foreigner, monthly taxes and social security, utilities, purchase car and daily/monthly running costs, yearly tax bill. Now you try and do that on 1%...sell a condo at Nirun for 600,000 that's a massive 6,000 com for you. Get real, do the maths. If you want your property marketed well 5% is reasonable. While we are at it...why are owners so stupid these days, I remember when you would visit a property and value it, nowadays so many owners think they know best and want xxxx amount regardless of the agents experience of knowing the market. As for any agent that expects you to send photos, give them a miss, an agent needs to view and value a property in order to market it correctly.

Beautiful. I guess that settles it. Pattaya could not survive without Real Estate Agents. As for fair and decent apprasials, where does one actually get one in Thailand? Not available except of course from the one selling said property(and his/her agent) with the commission incentive.

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Another agent bashing thread...OK....go rent an office in the high street for location...rent in the region of 20,000 a month. Set up a good website with a reputable company, 40,000 plus 8,000 a year, Thai staff 2 x 9,000 salary each per month plus com for their listings. Work permit and visa costs for each foreigner, monthly taxes and social security, utilities, purchase car and daily/monthly running costs, yearly tax bill. Now you try and do that on 1%...sell a condo at Nirun for 600,000 that's a massive 6,000 com for you. Get real, do the maths. If you want your property marketed well 5% is reasonable. While we are at it...why are owners so stupid these days, I remember when you would visit a property and value it, nowadays so many owners think they know best and want xxxx amount regardless of the agents experience of knowing the market. As for any agent that expects you to send photos, give them a miss, an agent needs to view and value a property in order to market it correctly.

Beautiful. I guess that settles it. Pattaya could not survive without Real Estate Agents. As for fair and decent apprasials, where does one actually get one in Thailand? Not available except of course from the one selling said property(and his/her agent) with the commission incentive.

I think the bank would give a fair appraisal.

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Another agent bashing thread...OK....go rent an office in the high street for location...rent in the region of 20,000 a month. Set up a good website with a reputable company, 40,000 plus 8,000 a year, Thai staff 2 x 9,000 salary each per month plus com for their listings. Work permit and visa costs for each foreigner, monthly taxes and social security, utilities, purchase car and daily/monthly running costs, yearly tax bill. Now you try and do that on 1%...sell a condo at Nirun for 600,000 that's a massive 6,000 com for you. Get real, do the maths. If you want your property marketed well 5% is reasonable. While we are at it...why are owners so stupid these days, I remember when you would visit a property and value it, nowadays so many owners think they know best and want xxxx amount regardless of the agents experience of knowing the market. As for any agent that expects you to send photos, give them a miss, an agent needs to view and value a property in order to market it correctly.

Beautiful. I guess that settles it. Pattaya could not survive without Real Estate Agents. As for fair and decent apprasials, where does one actually get one in Thailand? Not available except of course from the one selling said property(and his/her agent) with the commission incentive.

I think the bank would give a fair appraisal.

For free form the bank???...That's not the point, a lot of owners want, want, want, what they want...not want the property value is

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You make excellent points PattayaPhom....but it still does not explain why the jump from 3 to 5%. I suppose you'll say it was because of the slump you needed it to stay open ...but we all had to take a hit.

I was especially interested in your remarks about owners putting their own value on their properties..... I swear I tell you no lies........I have almost to get down on my knees to get an agent to put a value on one of the two properties I am selling now, I cannot get a straight answer as to what price I should put on them, especially the house. I bought it in bad repair and completely rebuild it so did not have a good idea as to what price to put on it. As far as I'm concerned a good agent should nearly be able to tell you what you will get for a property to the nearest 10,000 Baht. I was so used to agents at home being able to value a property that I found it very challenging here. They simply cannot, will not, or don't want to give their opinion on to what a property is worth. With the house I tried out an experiment....I priced it at over one million more than I thought it was worth ( judging by what it stood me) gave it to a ganzy load of agents....and not one....I say not one....said that it was overpriced...they just accepted my figure. I think I could have put another 2MB on top and they would have said nothing. Of course I'm aware some owners may be slow to let an agent price a property for fear of him putting it at a low price in order to get a quick sale.....but that was not the situation with myself....I value very much the "professionals" opinion.

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I think the bank would give a fair appraisal.

Many Farangs buy with cash. I'm not one who would trust either the bank or the agent or the seller but it's your money, do what you want with it. Regarding yet another terse reply from the agent, suffice to say as long as well all put the commission at the top of our list of priorties he/she will be happy. Once reasonable expectations enter in to it, look out. His/her mention of work permits for Real Estate agents is also amusing to me as I know many don't have one. Left out are the qualifications needed to become a Real Estate agent here in Thailand. I know of none, zero. Open an office, print up some cards, get a nice camera, away you go. Closing is the big "if" in the business here. While it was mentioned about exclusive listings to wit no MLS and can you imagine the chicken fight over the commissions?

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9 years I know of 5%, some do/did charge 3% but as you said, website and window display is all the marketing they did. When you have marketing costs that include, local publications, company magazine, song teaws, international websites such as Rightmove any many more 5% is justified. I have customers that want their property listed, when I visit them and we agree to list they challenge the 5% as so and so agent only charges 3%...I then ask have they sold it and the answer always comes back no, its been on the market a year or so...that 2% extra is worth getting a speedy sale.

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...I priced it at over one million more than I thought it was worth ( judging by what it stood me) gave it to a ganzy load of agents....and not one....I say not one....said that it was overpriced...they just accepted my figure. I think I could have put another 2MB on top and they would have said nothing.

Much like the simple barfine here, everyone knows what it's apx worth is. There is no base upon which to value your property in a professional manner and as mentioned, the agents here and other places are hardly professional people. Everyone's got to make a living so accepting a listing with no costs associated with it is a no brainer. Nothing to lose, no even a reputation.

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I think the bank would give a fair appraisal.

Many Farangs buy with cash. I'm not one who would trust either the bank or the agent or the seller but it's your money, do what you want with it. Regarding yet another terse reply from the agent, suffice to say as long as well all put the commission at the top of our list of priorties he/she will be happy. Once reasonable expectations enter in to it, look out. His/her mention of work permits for Real Estate agents is also amusing to me as I know many don't have one. Left out are the qualifications needed to become a Real Estate agent here in Thailand. I know of none, zero. Open an office, print up some cards, get a nice camera, away you go. Closing is the big "if" in the business here. While it was mentioned about exclusive listings to wit no MLS and can you imagine the chicken fight over the commissions?

Yes Bruce, we all work without permits and just went to Lotus and bought a 1,000 canon throw away camera and are ready to go.....shows that you really are not aware of what is involved with setting up running a real estate company. Yes there are unprofessional agents, just as there are unprofessional teachers, chefs, taxi drivers etc, etc, etc...those people will never last long in their chosen professions but there are many the complete opposite. I could list example after example of the idiots I have had to deal with in my time and its those idiots that normally come out with comments like yours...think they know best but hey ho its just part of life.

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I think the bank would give a fair appraisal.

Many Farangs buy with cash. I'm not one who would trust either the bank or the agent or the seller but it's your money, do what you want with it. Regarding yet another terse reply from the agent, suffice to say as long as well all put the commission at the top of our list of priorties he/she will be happy. Once reasonable expectations enter in to it, look out. His/her mention of work permits for Real Estate agents is also amusing to me as I know many don't have one. Left out are the qualifications needed to become a Real Estate agent here in Thailand. I know of none, zero. Open an office, print up some cards, get a nice camera, away you go. Closing is the big "if" in the business here. While it was mentioned about exclusive listings to wit no MLS and can you imagine the chicken fight over the commissions?

You talk shit even with cash do pay blindly buy what the agent wants or do you through due diligence find what the property is worth and counter offer accordingly ?

Edited by Spoonman
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5% is cheap compared to the amount of wasters agents have to put up with.

They sit doing nothing most of the day so they can afford plenty of time for the wasters. 5% is a joke.

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The "wasters" you refer to are obviously the "window shopping, time wasting so called purchasers", who have nothing better to be doing than swanning around, property gazing, to kill an afternoon......that problem has nothing to do with the complaints owners are talking about here...that is YOUR problem...and at the other end of the scale. Please don't try to involve us in it. Perhaps a small fee or something similar towards the expense of commuting them between properties might separate the men from the boys. We too have to put up with the time wasters. Now....when a person asks me over the phone before even coming to view the property "what's the lowest I'll take for it?".... I reply by telling them that after they have viewed the property, decided they like it and want to buy it, have enough money in their pocket to put down an initial small deposit (even 1,000 Bt) then I'll begin the "haggling" with them, guaranteeing them a fair price and hopefully a fair one for myself too. I can tell in a matter of seconds the genuine ones from the time wasters....so I no longer sit around with them after the viewing, having cups of tea and talking about the merits and de-merits of living in Thailand....I presume you can tell them apart too but I do realize you cannot turn them away on those grounds alone for fear you may be wrong.

PS, I knew an antique dealer at home who used to charge 5 Euro just to go into his shop....he too was probably sick and tired of the browsing tourists...he may have cut down the footfall into his shop drastically but at least he knew whoever came in were certainly genuine customers......sometimes I'm reminded of him and consider doing the same thing myself...just waiting a little longer to let the tolerance run out completely. Anyway, let's not take ourselves too seriously, As the man said ...."Don't bother taking off your coat....you won't be staying very long" ...Meaning....It's a short life for those who didn't get my drift.

Edited by dotpoom
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Surely the commission increased because both price and volume of sales dropped - they had to increase commission to try and retain a comparative income.

In Pattaya/Jomtien I suspect a key reason that much of the service is crap is because the number of sellers out numbers the buyers by about 5 to 1. Not much incentive to push "your" property when there's such a huge over supply of houses and condos, with more coming on the market every day. Unless of course someone's willing to sell their property at a giveaway price as many ultimately do.

Realtors actually refer to the number of properties available for sale as "stock" and have a measurement of churn. I wonder what the local measurements here are. I strongly suspect they're abysmal. coffee1.gif

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I think the bank would give a fair appraisal.

Many Farangs buy with cash. I'm not one who would trust either the bank or the agent or the seller but it's your money, do what you want with it. Regarding yet another terse reply from the agent, suffice to say as long as well all put the commission at the top of our list of priorties he/she will be happy. Once reasonable expectations enter in to it, look out. His/her mention of work permits for Real Estate agents is also amusing to me as I know many don't have one. Left out are the qualifications needed to become a Real Estate agent here in Thailand. I know of none, zero. Open an office, print up some cards, get a nice camera, away you go. Closing is the big "if" in the business here. While it was mentioned about exclusive listings to wit no MLS and can you imagine the chicken fight over the commissions?

Yes Bruce, we all work without permits and just went to Lotus and bought a 1,000 canon throw away camera and are ready to go.....shows that you really are not aware of what is involved with setting up running a real estate company. Yes there are unprofessional agents, just as there are unprofessional teachers, chefs, taxi drivers etc, etc, etc...those people will never last long in their chosen professions but there are many the complete opposite. I could list example after example of the idiots I have had to deal with in my time and its those idiots that normally come out with comments like yours...think they know best but hey ho its just part of life.

As expected and usual, reverting to personal attacks and name calling. As I clearly said, I know many who don't have work permits. I didn't say none of the offices were expensive looking. You will say as you did we are "not aware what is involved with setting up and running.." just like the so called "bar owners" say and tell us. You will call others "idiots" like you just did and say you are tired of dealing with them as you just implied. Oh, I should mention you can sell property quickly and at a fair price while others can't. We shall see and wish you well. You forgot to address the qualification point regarding being an "agent" and how the chickey fights work out when a buyer visits several agencies and ends up buying a property they all have listed! Cock a coo. Bar "owners" and Real Estate "agents have a lot in common including being smarter than all of us and of course thinking their time is so valued others are wasting when not buying their "crap".

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I think the bank would give a fair appraisal.

Many Farangs buy with cash. I'm not one who would trust either the bank or the agent or the seller but it's your money, do what you want with it. Regarding yet another terse reply from the agent, suffice to say as long as well all put the commission at the top of our list of priorties he/she will be happy. Once reasonable expectations enter in to it, look out. His/her mention of work permits for Real Estate agents is also amusing to me as I know many don't have one. Left out are the qualifications needed to become a Real Estate agent here in Thailand. I know of none, zero. Open an office, print up some cards, get a nice camera, away you go. Closing is the big "if" in the business here. While it was mentioned about exclusive listings to wit no MLS and can you imagine the chicken fight over the commissions?

Yes Bruce, we all work without permits and just went to Lotus and bought a 1,000 canon throw away camera and are ready to go.....shows that you really are not aware of what is involved with setting up running a real estate company. Yes there are unprofessional agents, just as there are unprofessional teachers, chefs, taxi drivers etc, etc, etc...those people will never last long in their chosen professions but there are many the complete opposite. I could list example after example of the idiots I have had to deal with in my time and its those idiots that normally come out with comments like yours...think they know best but hey ho its just part of life.

As expected and usual, reverting to personal attacks and name calling. As I clearly said, I know many who don't have work permits. I didn't say none of the offices were expensive looking. You will say as you did we are "not aware what is involved with setting up and running.." just like the so called "bar owners" say and tell us. You will call others "idiots" like you just did and say you are tired of dealing with them as you just implied. Oh, I should mention you can sell property quickly and at a fair price while others can't. We shall see and wish you well. You forgot to address the qualification point regarding being an "agent" and how the chickey fights work out when a buyer visits several agencies and ends up buying a property they all have listed! Cock a coo. Bar "owners" and Real Estate "agents have a lot in common including being smarter than all of us and of course thinking their time is so valued others are wasting when not buying their "crap".

I actually tell all my clients that as there is no sole agency agreement and they should list with as many agents as possible....providing they keep the price the same, my opinion is best man wins and well done to any other agent/vendor that sells a property we have listed also....REBA is probably as close to qualifications obtained in Thailand however experience in any field goes a long way. I have worked with people that have degrees and absolutely no common sense or work ethics whereas others with a few lesser qualifications are suitably 'qualified' Knowing the real estate market can only be skimmed in the classroom, in the field is where the real education starts. Its always a hot topic and rightly so with some of the experiences that people have had. However its unfair to tar everyone with the same brush especially when a lot is heresay or talk from barstools.

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Was in Real Estate for 12 years in California. At least there the agents have to attend courses and be licensed by the state after taking day long tests, which they do not do here. Amazing that anyone here can sell real estate without having a clue on what it legal and appropriate. What is important to remember anywhere in the world, is that charged real estate commissions are ALWAYS negotiable. 4% should be reasonable, unless it is a buyers market. The agent will show the 5% listings first.

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^^ the trouble with absolute or global statements is that quite often it is not true.

Where I live, the Government, through regulation, determines what the commission is.

BTW ... that regulated commission is less then 3%

I can't comment about California, or Thailand because I know little of the Rules and Regulations there.

.

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Percentage commissions would naturally be a bit higher where the selling price is so low.

Would be hard to make a living on 3percent commission when the selling price is 2million baht or even less.

I am sure if you have more expensive properties 10m baht up then the commission might be more negotiable.

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I actually tell all my clients that as there is no sole agency agreement and they should list with as many agents as possible....providing they keep the price the same, my opinion is best man wins and well done to any other agent/vendor that sells a property we have listed also....REBA is probably as close to qualifications obtained in Thailand however experience in any field goes a long way. I have worked with people that have degrees and absolutely no common sense or work ethics whereas others with a few lesser qualifications are suitably 'qualified' Knowing the real estate market can only be skimmed in the classroom, in the field is where the real education starts. Its always a hot topic and rightly so with some of the experiences that people have had. However its unfair to tar everyone with the same brush especially when a lot is heresay or talk from barstools.

Like we do the "bar owner"s, the fact remains they are pimps and you are a real estate agent, no matter what neon light color appears or garments worn or the supposed "security" having them in your relationships provides or fancy office you maintain. I will however give you some credit as it remains possible certain Real Estate "agents" and "agencies" could operate in a not only legal fashion but an honest one. However, for the most part, since it's Pattaya and Thailand money talks and BS walks and the commission remains the goal of all "agents", not the best deal for the customers. It's all talk until the money is paid. Then as I said, like a cock fight for it, a chicken chasing food.

We are confused as to why suggest "providing they keep the price the same" applies to various/multiple agency listings. We all know the asking price isn't expected to be paid when an "agency" is involved so why not list the same property at various agencies at various prices keeping the lowest listing price as what you, the seller, will accept? It's not like we are in a professional environment where it would be wrong to do.

Edited by BruceMangosteen
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