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Working in property buss in Thailand


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Thousands of sellers and no buyers.

Speak thai and get to know thai ways often referred to as "thainess".

Get yourself the proper visa, visit here, lay low and enjoy for a couple of years and things will fall in place.

One serious advice don't start right away, when you do you may start to dislike thailand.

Speak Thai, I suggest he learns how to read Thai.

Reading Thai opens many doors, he can go to the local 7 and buy a magazine called talat baan, all written in Thai, he can head over to prakard and read all the Thai adverts, he can read the adverts in the daily non farang orientated newspapers.

Not to mention the numerous adverts posted all over the place written in Thai.

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An inflammatory post has been removed as well as the replies quoting that post.

That's a shame, although I was quoting that post, mine was quite relevant because I was and am that very situation.

Ok, here is is again, a shortened version because I'm too lazy to type it all again.

I have been an agent most of my working life, starting off in Central London. I have worked for many large corporates in senior positions, and have had my own firm in NW London for many years. I am a career estate agent. The UK market is very heavily regulated, to break the laws can involve fines, being banned from the industry or in the worse case even imprisonment. So let's just say I am used to running a tight ship and working here has been a bit of an eye opener.

I set up an agency here after buying my own house because I was surprised at the level professionalism shown by agents that I dealt with. I run things here exactly as I would do at home. We don't as a rule do any business with other agents and have, on the whole been well received.

My advice to the OP is that the property market here is hard, it has been in decline since the start of the European economic problems and the hardening of the Baht. It is not easy for any farang to succeed in any business here, and the property market is no easier than others. By Law you cannot be a broker or an agent (unless your area is international trade). You can be a manager or director of a property company though.

Many if not most of the comments on agents here are well founded!

If you would like anymore of my brand of advice PM me, otherwise good luck !

SDM

My advice to the OP is that the property market here is hard, it has been in decline since the start of the European economic problems and the hardening of the Baht.

You dont say where you are posting from or what your target audience is.

If I assume posting from some farang holiday destination with a target audience of farang, you are probably correct.

If we are talking Thai areas with Thai buyers, it bears no resemblance to what I see going on around me.

Thais are unaffected by the European meltdown or the baht rate.

I would assume the Thai market is significantly larger than the farang one.

No mention made of the Japanese/Korean market in Bkk that seems to carry on as normal.

I have a Thai friend married to a Japanese guy, they cater to the Japanese market, the girl tells me they are constantly sourcing properties.

Be advised, the Japanese want their moneys worth and wont invest in any old crap.

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An inflammatory post has been removed as well as the replies quoting that post.

That's a shame, although I was quoting that post, mine was quite relevant because I was and am that very situation.

Ok, here is is again, a shortened version because I'm too lazy to type it all again.

I have been an agent most of my working life, starting off in Central London. I have worked for many large corporates in senior positions, and have had my own firm in NW London for many years. I am a career estate agent. The UK market is very heavily regulated, to break the laws can involve fines, being banned from the industry or in the worse case even imprisonment. So let's just say I am used to running a tight ship and working here has been a bit of an eye opener.

I set up an agency here after buying my own house because I was surprised at the level professionalism shown by agents that I dealt with. I run things here exactly as I would do at home. We don't as a rule do any business with other agents and have, on the whole been well received.

My advice to the OP is that the property market here is hard, it has been in decline since the start of the European economic problems and the hardening of the Baht. It is not easy for any farang to succeed in any business here, and the property market is no easier than others. By Law you cannot be a broker or an agent (unless your area is international trade). You can be a manager or director of a property company though.

Many if not most of the comments on agents here are well founded!

If you would like anymore of my brand of advice PM me, otherwise good luck !

SDM

My advice to the OP is that the property market here is hard, it has been in decline since the start of the European economic problems and the hardening of the Baht.

You dont say where you are posting from or what your target audience is.

If I assume posting from some farang holiday destination with a target audience of farang, you are probably correct.

If we are talking Thai areas with Thai buyers, it bears no resemblance to what I see going on around me.

Thais are unaffected by the European meltdown or the baht rate.

I would assume the Thai market is significantly larger than the farang one.

No mention made of the Japanese/Korean market in Bkk that seems to carry on as normal.

I have a Thai friend married to a Japanese guy, they cater to the Japanese market, the girl tells me they are constantly sourcing properties.

Be advised, the Japanese want their moneys worth and wont invest in any old crap.

I think you are very right in your point of view.
I noticed that some properties mainly targeting foreign Western customers seemed difficult to sell and prices were reduced during the financial crises, however the upper and more luxurious end of the market looked unattached; “business as usual” I was told.
Some month ago the TV news section had an article about the condo market in Bangkok and the ongoing rise in price, all through the Western financial crisis, and compared with Hong Kong the price rise were higher I Bangkok. The article mentioned that many Chinese people were investing in property (condos) in Bangkok – however, again seemed like the articled looked into more upper end of the market.
I have also noticed, that the kind of property aimed at Thais or other Asian audience where I stay, have gone up in price all the time over the past decade, and building constructers did not seem to be suffering (maybe excluding those constructors aiming for mainly Western customers).
My conclusion to what I see, hear and read is; that the upper end of the property market and that aimed for Asia customers are performing all right.
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You dont say where you are posting from or what your target audience is.

If I assume posting from some farang holiday destination with a target audience of farang, you are probably correct.......

If we are talking Thai areas with Thai buyers, it bears no resemblance to what I see going on around me.

Thais are unaffected by the European meltdown or the baht rate.

I would assume the Thai market is significantly larger than the farang one.

.

Actually yes, a good point. My company here covers Phuket Province and I would agree that the Thai market is far more active than the foreign market and mainly in the sub 5MB range. Having said that most are struggling with mortgages.

SDM

Edited by SDM0712
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Even easier with an agent as they dont do much apart from opening the front door to a few properties.

I wish that were true! Money for nothing, right ?

Let me add one or two points to your list ;

1. Doing details

2. Taking photographs, in our case professional quality.

3. Doing floorplans, takes between one and two hours

4. Uploading the properties to the agent's website and several other sites that they pay for. (Remember no sale no fee, so if we don't sell the property we about of pocket)

5. Making appointments and yes, opening the door and then showing the buyer around that property as as many others that suite, sometimes this takes all day.

6. Negotiating a price, our job is to get the best price for the seller and our fee structure means that the more we get, the more we get. No apologies for this, if a buyer wants to pay an agent to find it works the other way, but fees can only be one way. In nutshell we work to get the best deal for the client.

7. Draw contracts up ourselves or recommend a lawyer to and set up an ownership structure, if required.

8 Deal with the land department on fees.

9. Through the entire process keep everyone informed as to the stage that the sale is at, what is outstanding and a likely time frame for completion.

My advice to anyone that thinks agents "just open the door", is don't use an agent and sell the property yourself. Often the selling is the easiest part, the difficulties come during the sales process.

SDM

Edited by SDM0712
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Hi Frank;

I have an opportunity opening up in Phuket in the not too distant future if that may be of interest to you.

If so, Google 'Thailand City Real Estate' and you will find my contact details quite easily.

let me guess OP and nickpendrell are the same user sponsoring this thread. Its cheaper than a newspaper ad

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Even easier with an agent as they dont do much apart from opening the front door to a few properties.

I wish that were true! Money for nothing, right ?

Let me add one or two points to your list ;

1. Doing details

2. Taking photographs, in our case professional quality.

3. Doing floorplans, takes between one and two hours

4. Uploading the properties to the agent's website and several other sites that they pay for. (Remember no sale no fee, so if we don't sell the property we about of pocket)

None of which are of any benefit to me as a buyer.

6. Negotiating a price, our job is to get the best price for the seller and our fee structure means that the more we get, the more we get. No apologies for this, if a buyer wants to pay an agent to find it works the other way, but fees can only be one way. In nutshell we work to get the best deal for the client.

Again, not of any benefit to me as a buyer. Quite the opposite in fact.

And the old saw about the percentage commission encouraging the agent to get the best price is just nonsense. Given the choice would you prefer to sell a house worth 5MB easily for 4MB and get (say) .2MB commission, or struggle for months or years to sell it for 6MB just to get the extra .1MB commission? I think I know the answer. I certainly know what I would do.

Other items quoted also not of much use to the buyer.

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……………..None of which are of any benefit to me as a buyer……..Again, not of any benefit to me as a buyer. Quite the opposite in fact…….Other items quoted also not of much use to the buyer………………

Thank you for giving me the opportunity to explain why your view is short sighted, but before doing that let me say, thrice to match the appearances in your post, we work for the seller, we work for the seller, we work for the seller and make no apology for that.

And now let me explain why the majority of my nine points are of significant benefit to a buyer;

1. Doing details

To prevent wasting time the time of the seller and buyer by accurately describing a property and said description may make it clear that the property is not suitable for the buyer or in the alternate to explain various details like location, land size, floor size etc. Is this really not useful?

2. Taking photographs, in our case professional quality.

Is it really not useful to view every room from a photograph before actually viewing in person? Perhaps details can lie, but photographs can’t.

3. Doing floorplans, takes between one and two hours

Is it really of no use to know the layout of the property before viewing? To know that all bedrooms are off a hallway for example and not off another bedroom? Of no use?

4. Uploading the properties to the agent's website and several other sites that they pay for. (Remember no sale no fee, so if we don't sell the property we about of pocket)

Without this the only way a buyer would know a property was even for sale would be by combing the private ads and driving around looking at sellers own for sale boards outside their house or word of mouth. Again, is this really of no use to a buyer that they just have to turn their computer on, press a few buttons and see a list of homes?

5. Making appointments and yes, opening the door and then showing the buyer around that property as many others that suite, sometimes this takes all day.

Is it not useful for an agent to act as a free taxi and ferry buyers around an unfamiliar area looking at property? Or arranging a string of appointments to view several properties. Still of no use?

6. Negotiating a price.

An expert carefully dealing with both parties to agree a sale, of no use? Although we act in the seller’s best interest we don’t hold a gun to the buyers head. They pay what they wish to pay. Many sellers and buyers prefer not to talk to each other on emotive issues such as price for fear they will upset the other and lose the deal.

7. Draw contracts up ourselves or recommend a lawyer to and set up an ownership structure, if required.

Admittedly of no use if the buyer already has a lawyer and knows what they are doing, most do not, so of some use to that group.

8 Deal with the land department on fees.

Considering that transfer fee and taxes are normally shared equally is it really of no use if reduced fees can be agreed. No use?

9. Through the entire process keep everyone informed as to the stage that the sale is at, what is outstanding and a likely time frame for completion.

Is it really of no use that there be a central person coordinating with seller, buyer, lawyers, banks and land department and giving updates to buyer and seller regularly ? Also helping to deal with problems as they come up. Especially bearing in mind that most buyers do not have a clue what they are doing. Really no use?

In my London office most buyers are resident in the UK, so they have time to find. However here in Phuket there are around 3000 properties on the market. In most typical buyer ranges there are several hundred. Now imagine you are a buyer visiting on a buying trip for say ten days. Just how many properties can you see in the time, five a day maybe. That level won’t even scratch the surface of what is available. If the agent has done their job right it makes it a much easier task for the buyer to create a short list. Even for people who live here, just how much time are they willing to devote to looking at wholly unsuitable properties?

I hope I have given an insight into the use that a good agent can be to a buyer.

SDM

Edited by SDM0712
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I hope I have given an insight into the use that a good agent can be to a buyer.

First, find the good agent.

OK, taking photos and uploading data to a website can be helpful, though many condo units look very similar and have similar details, and so an on-site visit is of more use. I know that when I am looking I rarely need to see photos or read descriptions to know whether a place is likely to suit me, but maybe that's just me. I dont think that floorplans are of much use in a condo but maybe some people find them useful in other types of property.

It's also common to find the same unit advertised with umpteen different agents, and often enough the vendor provides most of the data and photos on a USB stick in the first place. Many units in any one building will be very similar anyway, especially in the newer buildings which commonly have standard fittings and decor and room sizes/layouts.

As for the time the agent spends online doing this, having designed several websites for real estate agents I know that it is minimal. Many of the pay sites that show listings from more than one agent get the data automatically from the agent's own site anyway. I have implemented this myself.

If an agent actually does all things that you mention then there is an argument to be made for them being worth something. But the problem here is that many agents know little about the properties they sell. They dont keep their websites up to date and they dont answer queries promptly (or at all in some cases). In fact many of them dont really want to do anything apart from make a quick sale for minimal effort, and they often spend a disproportionate amount of their time promoting units they own themselves rather than units that other people have up for sale (I have seen this so often here).

In your UK office I suspect that you charge somewhere around 1-2% for the service you provide, and you take some legal responsibility for getting the descriptions correct and telling the truth. Your costs for ferrying people around, and business expenses generally, are all quite high there.

But here where all expenses are much lower the same service is commonly charged at 5%, which seems vastly overpriced especially as a fairly unexciting condo can here can easily be the same price as a whole house in parts of the UK. It all seems very poor value to me.

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First, find the good agent.......

As for the time the agent spends online doing this, having designed several websites for real estate agents I know that it is minimal. Many of the pay sites that show listings from more than one agent get the data automatically from the agent's own site anyway. I have implemented this myself.........

If an agent actually does all things that you mention then there is an argument to be made for them being worth something.

But here where all expenses are much lower the same service is commonly charged at 5%, which seems vastly overpriced especially as a fairly unexciting condo can here can easily be the same price as a whole house in parts of the UK. It all seems very poor value to me.

Thank you.

Firstly, From your response I can see you do after all attach some value to some agents and it even looks like you have been indirectly involved in agency work your self by designing the websites. The data feeds you refer to though are very poor here in Thailand and no substitute for direct uploading.

Secondly, I can only speak for what my firm does, and we do not as a rule do any joint business with other agencies. We work to the same standards as demanded and required by UK Law.

Thirdly, you talk about value for money, let me remind you that since your are referring to use of agent for the buyer, that buyers do not pay agents anything. So I would say its excellent value for money !!

Let's leave it there, have a good day.

SDM

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First, find the good agent.......

As for the time the agent spends online doing this, having designed several websites for real estate agents I know that it is minimal. Many of the pay sites that show listings from more than one agent get the data automatically from the agent's own site anyway. I have implemented this myself.........

If an agent actually does all things that you mention then there is an argument to be made for them being worth something.

But here where all expenses are much lower the same service is commonly charged at 5%, which seems vastly overpriced especially as a fairly unexciting condo can here can easily be the same price as a whole house in parts of the UK. It all seems very poor value to me.

Thank you.

Firstly, From your response I can see you do after all attach some value to some agents and it even looks like you have been indirectly involved in agency work your self by designing the websites. The data feeds you refer to though are very poor here in Thailand and no substitute for direct uploading.

Secondly, I can only speak for what my firm does, and we do not as a rule do any joint business with other agencies. We work to the same standards as demanded and required by UK Law.

Thirdly, you talk about value for money, let me remind you that since your are referring to use of agent for the buyer, that buyers do not pay agents anything. So I would say its excellent value for money !!

Let's leave it there, have a good day.

SDM

We work to the same standards as demanded and required by UK Law.

And that has exactly what to do with Thailand?

Are those laws you refer to enforcable in Thailand?

Never mind, moot point.

Let me ask you,

for selling, what percent do you charge, the going rate in Bkk is 3%

do you give a finders fee?

Lets assume I find a buyer for one of your properties listed, then what?

Whats in it for me %age wisse?

You talk about acting on behalf of the buyers, lets assume you advise a client his property is worth 5 million baht, you take 3% or 150,000 baht.

Lets assume I offer 4 million cash, your take will be 120,000 baht, but I offer to give you a brown envelope with 30k in cash to make up your shortfall, please expand.

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We work to the same standards as demanded and required by UK Law.

Rather than quote your post and then repeat each question with an answer, let me do it this way. SDM

We work to the same standards as demanded and required by UK Law. SDM

And that has exactly what to do with Thailand?

It means only that I am used to working in a legal system that holds me accountable for pretty much everything I do. Anyone using our services will receive the same standards of service that are expected as a norm in the UK. This will only mean anything to Brits as I am really unsure how real estate agents are regulated in other countries. SDM

Are those laws you refer to enforcable in Thailand?

Not at all, but if you accept what I have said above then they don’t need to be. SDM

Let me ask you, for selling, what percent do you charge, the going rate in Bkk is 3%

do you give a finders fee?

My firm charges 5% for sales and 10% for rentals. If someone passes me a name and that person actually buys or rents something I will give them 10% of my fee. However I do not go out of my way to look for referrers hence the poor reward.

Lets assume I find a buyer for one of your properties listed, then what?

As above, but to be honest I prefer to find buyers by our standard advertising methods. Everyone in this country is an agent and in the beginning I dealt with people who “knew someone” that wanted to buy. But it usually turned out to be someone, who knew someone, who overheard their boss was looking for something. This is far too messy for me and I hate mess. To many links, too many Chinese whispers, too unreliable. I do not court this kind of business.

You talk about acting on behalf of the buyers

I never said that. What I said was that the services that we provide can be of use to buyers. We do not generally act for buyers, we act for sellers since they pay our fee and are thus our clients. Very occasionally we are retained by a buyer to find a property for them if we have nothing that suits on our books. This means that they will pay us a percentage of the purchase price if we do find something but also means we have to comb other agents ads, private ads etc looking for the right thing for them. Again, this is not business that we court.

……. lets assume you advise a client his property is worth 5 million baht, you take 3% or 150,000 baht. Lets assume I offer 4 million cash, your take will be 120,000 baht, but I offer to give you a brown envelope with 30k in cash to make up your shortfall, please expand.Bel

You may believe this or not, it is of no consequence to me, but the suggestion in itself offends me. Remember I have a very different professional background to many agents here, but this does go on here and in my home. For companies that I own, have owned and corporations that I have worked for this would warrant summary dismissal. Also my UK Company is in one of London’s most expensive suburbs, it does very well and I still have my proper salary from there. I suppose to feed my family in the worst situation perhaps I would be tempted, but the reality is that I don’t need to.

Hopefully I have answered all your questions satisfactorily !

SDM

Edited by SDM0712
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Hi Frank;

I have an opportunity opening up in Phuket in the not too distant future if that may be of interest to you.

If so, Google 'Thailand City Real Estate' and you will find my contact details quite easily.

let me guess OP and nickpendrell are the same user sponsoring this thread. Its cheaper than a newspaper ad

Very poor reaction... why don't you give some reply that adds to the questions, the thread. And, better, not spoil your time here.

@all: More serious...

I did take a proper look at the market, and i did see overheated markets in farang-places. From my experience in my own country i learned to detect and explore niches. In every market there are...

The Thai market, not the farangmarket, is driven by a fastly growing middleclass, with growing demands and money.

And... the farangmarket is clearly over the top... some bouncing could be expected soon..

Not in my mind i would invest in this market now.

We live in an open world... everybody can find knowledge, can find everything they want on the internet. People are not that stupid as we often think...

From that poimt of view and considering the remarks about bad quality and such... soon even Thai people will demand better quality.

I am aware of the special aspects, Thai law, Thainess, trustability and many more... i can assure you, there were and are such aspects in my homemarket as well.

Wait and see... acting on opportunities..

Question: is there a Thai farang-propertycommunity?

Anyway, thanks to all repliers who gave me something 'to think about'... or useful information

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We work to the same standards as demanded and required by UK Law.

Rather than quote your post and then repeat each question with an answer, let me do it this way. SDM

We work to the same standards as demanded and required by UK Law. SDM

And that has exactly what to do with Thailand?

It means only that I am used to working in a legal system that holds me accountable for pretty much everything I do. Anyone using our services will receive the same standards of service that are expected as a norm in the UK. This will only mean anything to Brits as I am really unsure how real estate agents are regulated in other countries. SDM

Are those laws you refer to enforcable in Thailand?

Not at all, but if you accept what I have said above then they don’t need to be. SDM

Let me ask you, for selling, what percent do you charge, the going rate in Bkk is 3%

do you give a finders fee?

My firm charges 5% for sales and 10% for rentals. If someone passes me a name and that person actually buys or rents something I will give them 10% of my fee. However I do not go out of my way to look for referrers hence the poor reward.

Lets assume I find a buyer for one of your properties listed, then what?

As above, but to be honest I prefer to find buyers by our standard advertising methods. Everyone in this country is an agent and in the beginning I dealt with people who “knew someone” that wanted to buy. But it usually turned out to be someone, who knew someone, who overheard their boss was looking for something. This is far too messy for me and I hate mess. To many links, too many Chinese whispers, too unreliable. I do not court this kind of business.

You talk about acting on behalf of the buyers

I never said that. What I said was that the services that we provide can be of use to buyers. We do not generally act for buyers, we act for sellers since they pay our fee and are thus our clients. Very occasionally we are retained by a buyer to find a property for them if we have nothing that suits on our books. This means that they will pay us a percentage of the purchase price if we do find something but also means we have to comb other agents ads, private ads etc looking for the right thing for them. Again, this is not business that we court.

……. lets assume you advise a client his property is worth 5 million baht, you take 3% or 150,000 baht. Lets assume I offer 4 million cash, your take will be 120,000 baht, but I offer to give you a brown envelope with 30k in cash to make up your shortfall, please expand.Bel

You may believe this or not, it is of no consequence to me, but the suggestion in itself offends me. Remember I have a very different professional background to many agents here, but this does go on here and in my home. For companies that I own, have owned and corporations that I have worked for this would warrant summary dismissal. Also my UK Company is in one of London’s most expensive suburbs, it does very well and I still have my proper salary from there. I suppose to feed my family in the worst situation perhaps I would be tempted, but the reality is that I don’t need to.

Hopefully I have answered all your questions satisfactorily !

SDM

Wasnt trying to offend or belittle you, too be frank and not trying to patronise you, you at least aint speaking with a forked tongue.

You have only the wide boys and spivs representing your profession who have gone before you in Thailand to thank for the reputation your profession has.

Yes you have answered all my questions, thanks.

Please feel free to send me a PM with your companys name and location, I will pass it on to the farangs I know.

Unlike some of our former barrow boys from Billericay market who re-invent themselves upon arrival on these shores, you at least appear to have some principals.

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Hi Frank;

I have an opportunity opening up in Phuket in the not too distant future if that may be of interest to you.

If so, Google 'Thailand City Real Estate' and you will find my contact details quite easily.

let me guess OP and nickpendrell are the same user sponsoring this thread. Its cheaper than a newspaper ad

Very poor reaction... why don't you give some reply that adds to the questions, the thread. And, better, not spoil your time here.

@all: More serious...

I did take a proper look at the market, and i did see overheated markets in farang-places. From my experience in my own country i learned to detect and explore niches. In every market there are...

The Thai market, not the farangmarket, is driven by a fastly growing middleclass, with growing demands and money.

And... the farangmarket is clearly over the top... some bouncing could be expected soon..

Not in my mind i would invest in this market now.

We live in an open world... everybody can find knowledge, can find everything they want on the internet. People are not that stupid as we often think...

From that poimt of view and considering the remarks about bad quality and such... soon even Thai people will demand better quality.

I am aware of the special aspects, Thai law, Thainess, trustability and many more... i can assure you, there were and are such aspects in my homemarket as well.

Wait and see... acting on opportunities..

Question: is there a Thai farang-propertycommunity?

Anyway, thanks to all repliers who gave me something 'to think about'... or useful information

The Thais are already demanding better quality, and contrary to belief, they have the money to pay for it.

Take a look at some of the houses being constructed in Bkk, material and methods that wouldnt be out of place in the West.

The sooner many farang rid themselves of this notion that Thailand is a cheap place for property the better.

Yes if you want cheap in Thailand you will get it, hence the reason many come to the property section bitching and moaning about their houses.

What TF do they expect when they are paying 300 baht per day for labour?

My BIL is fully booked up for at least the next 4 months, he charges 3,000 baht per day, work it out.

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Wasnt trying to offend or belittle you, too be frank and not trying to patronise you, you at least aint speaking with a forked tongue.

You have only the wide boys and spivs representing your profession who have gone before you in Thailand to thank for the reputation your profession has.

Yes you have answered all my questions, thanks.

Please feel free to send me a PM with your companys name and location, I will pass it on to the farangs I know.

Unlike some of our former barrow boys from Billericay market who re-invent themselves upon arrival on these shores, you at least appear to have some principals.

Don’t worry I’m not offended by you in the slightest, that wsnt what I meant, and the suggestion is valid from what I have seen here, which is one of the reason we don’t like to work with anyone else. I’m old school and come from a time and a place where to be an Estate Agent was a respected profession and from a country where we actually have a Law called The Property Misdescriptions Act, that make it a criminal act to describe something incorrectly, or even alter a photograph in any way. I’m also very lucky in that I work because I enjoy the job, I like to work but I don’t need to work.

The more senior I’ve become in my career, the further back I’ve been pushed from the stuff that I enjoy, in dealing with people and properties. Its quite refreshing being on the front lines again and sellers seem to like my brand of “telling it as it is”, I just wish more would actually take my advice!

SDM

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