Buying direct from the owner versus buying through an agent
Three things differ: who checks the documents, who carries the risk if the documents turn out to be a problem, and how much of the market you can actually see. Cost is not one of them for a buyer, because in the standard Thai model the seller pays the agent, not the buyer.
That last point is the one most often misunderstood, and it is why buying direct to save the commission usually saves nothing at all.
Who pays the agent in Thailand
| Transaction | Standard rate | Who pays |
|---|---|---|
| Sale | 3 per cent of the actual sale price, the standard accepted by the Thai Real Estate Broker Association | The seller |
| Letting | One month's rent for a lease of 12 months or more, paid once on signing | The owner |
Be careful, though: practice varies between agencies, and some do charge tenants. Ask directly who pays before you start viewing. A clear answer up front is a sign of an agency that works to a system.
At PlanLiv, buyers and tenants pay no service fee. The fee comes from the owner's side, is agreed in writing before work begins, and is charged only on success. On who pays the letting agent, see who pays the rental agent in Thailand.
The genuine advantages of buying direct
Stated fully, because plenty of people do buy direct and do well out of it.
- You talk to the decision maker. No relay of messages back and forth, which is faster where the owner is decisive and genuinely ready to sell.
- You get the house's history from whoever lived in it. What has been repaired, what the neighbours are like: information that appears in no document.
- Some owners will discount because there is no commission. This does happen. It does not always happen.
Read that last one carefully. Owners selling privately mostly price against what similar homes in the area fetch, not against market price minus three per cent. The commission saving therefore tends to stay in the seller's pocket rather than reaching the buyer.
What disappears without an agent, and who carries it instead
| Task | With an agent | Buying direct |
|---|---|---|
| Checking title and encumbrances | Checked before you are taken to view | You obtain and check the records yourself |
| Confirming the seller has the right to sell | Verified when the listing is taken on | Yours to verify, and the point where people most often get caught |
| Negotiating | An intermediary negotiates without damaging the relationship | You negotiate face to face, which is more awkward and usually yields less |
| Paperwork and the transfer appointment | Coordinated for you | You coordinate with both the seller and the land office |
| What you can see | Includes stock the owner never advertises | Only what owners advertise themselves |
The second row is the expensive one. A seller who is not the owner, land under an unreleased mortgage, or a servitude that appears nowhere on the title are all things a direct buyer misses because they do not know to look.
On burdens invisible in the paperwork, see land carrying a servitude that never appears on the title, and for what to check before a deposit, how to check a plot before paying a deposit.
When direct works and when it does not
| Situation | Better route |
|---|---|
| You know the owner personally and the property is clearly unencumbered | Direct is fine, but still have someone read the contract before signing |
| A resale with unknown history, or several co-owners on the title | Through an agent, because the risk sits in the documents and the people |
| Buying from another province or from abroad, unable to visit often | Through an agent, because someone has to attend and coordinate |
| Comparing several properties in limited time | Through an agent, because you also see stock owners do not advertise |
| A long term rental | Through an agent, because the tenant pays no fee in the standard model |
What to ask an agent before they start
- Who pays the service fee, and what will I be charged?
- Is the fee agreed in writing before work starts, and is it charged on success or in advance?
- Do you check title before taking me to view, and what exactly do you check?
- Is the property one you have taken on directly, or sourced from elsewhere?
- If the deal falls through, does any cost fall on me?
The first and last questions screen out almost everything. An agency that answers evasively is the agency you will have trouble with as the transfer date approaches.
At PlanLiv, valuation, photography and listing, marketing, title verification, screening buyers and tenants before viewings, and management through the life of a tenancy are all included at no extra charge. See the services page, or browse properties for sale and properties to rent.
Frequently asked questions
Does a buyer pay the agent's commission?
Not in the standard Thai model. The seller pays, at around 3 per cent of the actual sale price. Practice varies between agencies, so confirm before you start viewing.
Do tenants pay a letting fee?
In the standard model the owner pays, at one month's rent for a lease of 12 months or more. At PlanLiv tenants pay no service fee, but some agencies in the market do charge tenants, so ask first.
Is buying direct actually cheaper?
Not reliably. Owners selling privately mostly price against local market values rather than market minus the commission, so the saving tends to stay with the seller.
Where is the biggest risk in buying direct?
Confirming that the seller has the right to sell and that the property carries no encumbrances, because those are the things a direct buyer usually fails to check, not knowing what to look for.
What is the standard sales commission in Thailand?
3 per cent of the actual sale price, the standard accepted by the Thai Real Estate Broker Association, paid by the seller.
What is the standard letting commission?
One month's rent for a lease of 12 months or more, paid once on the day the lease is signed, by the owner.
What should I ask an agent first?
Who pays the fee, whether it is agreed in writing before work starts, whether it is charged on success or in advance, whether title is checked before viewings, and whether any cost falls on you if the deal collapses.
When is buying direct the better choice?
When you know the owner personally and the property is clearly unencumbered. Even then, have someone who reads contracts look at it before you sign.
Key takeaways
- In the standard Thai model the seller pays around 3 per cent and the owner pays one month's rent on a letting. Buyers and tenants pay nothing.
- Buying direct to save the commission therefore usually saves nothing, because that money never left the buyer's pocket.
- Owners selling privately price against local market values, not against market price minus the commission.
- What disappears without an agent is title checking, verification of the seller's right to sell, and an intermediary to negotiate.
- The most expensive risk is confirming the seller's right to sell and that no invisible encumbrance attaches.
- Practice on who pays differs between agencies, so ask directly before viewing.
- The two best screening questions are who pays the fee and whether any cost falls on you if the deal fails.