How much does a real estate agent make in Phuket?

Let’s talk about a real estate agent remuneration in Phuket.

It is absolutely normal for an investor or a tenant to wonder how much does the service a real agent provide cost.

Your real estate agent obviously doesn’t work for free but I often hear some agents in Phuket saying that the client doesn’t pay anything to the agency.

I am absolutely transparent on the matter: YES, Absolutely YES, the client is always the one who pays the agency commission as the funds come from the investor or tenant.

It is physically the owner who pays the commission to the agent, but once again, the money comes from the client.

What is the commission rate for a real estate agent in Phuket? The answer is quite simple:

·        Sale of a property whose owner is an individual:

• 5% of the final price.
• 3% of the final price for high end properties.

·        Sale of a land whose owner is a Thai national:

• Usually 3%.
• Very rarely 5%.

·        Sale of the land whose owner is a foreigner:

• Usually 5%.

·        Sale of a villa or condominium from a developer. This part is interesting as the remuneration is based both on a commission and a bonus for the salesman.

• 5 to 10% commission.
• Bonus of THB 50,000 to THB 150,000. There are still some developers whom don’t pay any bonus.
• 3% commission for high end developments.

·        Rentals (both long and short terms):

• Usually 10% for both short and long-term rentals.
• Some long-term rentals are paid only by 1 month rent.
• Some real estate agents require 15% commission for short term rentals.

Therefore, it is extremely important to hire a real professional whose motivation isn’t solely getting a commission.

Keep in mind that a real estate agent in Phuket is by definition subject to conflict of interest as he will get paid only if he closes a deal and not because he is knowledgeable and an expert in his field.

As usual, I have plenty more to say on the matter, do not hesitate to contact me if you have any question.