The Thailand real estate market can be different from your home country.
If you have property in Thailand and want to use a real estate agent to sell or rent out your property, there are some important points you should know.
Let’s take a look.
Waiting for Buyers and Renters
You might be in a position where your property is listed but nothing happens. I’ve seen some properties that have been listed for years and while they have gathered a few thousand hits on their respective websites, nothing has happened. The question is what to do about it.
The first thing is to spread the word yourself. You can talk to friends and they will talk to other people. The power of text messaging is incredible, especially if you’re prepared to be reasonable on price. Personal contact is very important in Thai culture and it might be a good idea to show some hospitality to the prospective client by taking them to dinner. Another idea is posting flyers on the local supermarket board. Perhaps a more modern take would be to post your property on Facebook.
You should always put up a big sign on your property in both Thai and English saying that the property is for rent or sale and this should include the phone number of the agent.
Advertising
The informal approach is highly effective in Thailand. You’ll often get offers from unexpected quarters and you should follow them up yourself and then ask them to come to the real estate office. A direct sale between two parties, whether they be local or a foreigner, is possible, but the transfer must be handled correctly at the Land Office and the contracts, taxes, and ownership restrictions should be checked carefully. The term presently used is gatekeeper but I have very little optimism that things will change anytime soon on this particular matter.
Open Days
Another idea would be to host a preview day where you allow prospective clients to inspect your property. This could generate sufficient interest and it is acceptable in Thai culture.
Auctions are not very common in Thailand for apartments or houses as a private residential sales method. Many public property auctions are conducted by the Legal Execution Department or other authorities for seized or foreclosed property. The risk of losing face is assumed to be too great which could lead to unfortunate consequences. Perhaps this will change in the future due to the changing cultural environment.
Lack of Auction Culture
Auctions for private residential property are not a common mainstream sales method in Thailand. I have talked with a number of real estate agents and they have expressed little interest in doing this. This has to do with the saving face culture and auctions must always have a loser if there is more than one bidder.
Legal Challenges and Documents
You’re better off referring any legal disputes to a lawyer rather than doing it directly yourself. This is how it should be done and it helps to maintain a professional relationship between you and the real estate agent.
Thai law generally restricts foreign ownership of land. Foreigners can own condominium units in their own name if the building remains within the foreign ownership quota, which is generally not more than 49 percent of the total unit area. This condominium rule does not give ownership of the land. For land and houses, you’ll need a lawyer to make sure that you are on the correct side of the law, and using Thai nominees to hold land for a foreigner can create serious legal problems.
What I want to discuss is your attitude towards it. Thais are fond of these restrictions and talking about changing them won’t increase your popularity. Don’t delve into the politics of the situation with your agent or your lawyer.
Language Skills
Always have someone who can understand what is being said and is fully literate in Thai with you. This is not so important if you’re just renting an apartment for a short term but it becomes necessary when you’re signing important legal documents.
Remember that it is the Thai text that is the official text. It’s also a good idea to learn the language yourself.
Be Extra Nice
Sending a card after the deal is done is a good way of showing your appreciation.
This will make for a solid relationship.
Leaving a nice comment on their website will also be much appreciated as well and of course the power of social media can be used to harness positive relationships to open doors for you.
This will help you avoid being labelled as a difficult client which is something that you should avoid. You will be better off playing the game within the confines of Thai culture. I have seen what happens when people take a heavy approach here in Thailand and it doesn’t work.
This doesn’t mean you should do nothing. Use the power of social media and your social connections to get clients. Hold open days that attract people or advertise it as a party with free hospitality.
Now, on to You
A happy life can be enjoyed if you adjust to the culture and keep your eyes and ears open. If you view Thailand as a great place to live then you’ll be a winner. If you look at Thai property as a great place to invest and you’re a foreigner then you’ll be facing innumerable challenges due to the culture, laws, and changing economic situation. Managing a portfolio of properties through a nominee company or nominee partner can create serious legal and practical risks.
After reading this article, it’s also worth checking out our guide to deal with the real estate market to get a general understanding of how it works.
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