“Our strategy is to buy all available units of one particular type in a project, for example all studios, to avoid competing directly with the developer.”
On paper, if you have the finances, it probably makes good business sense, but is it risky?
This statement comes from a Pattaya real estate agent, a city where most market watches will acknowledge there’s a severe oversupply situation of condominiums right now. Buying property in Thailand is a straightforward process, but be sure you know the seller.
I’ve heard, but never seen anything in writing, that real estate agents marketing overseas property in Asia will need to guarantee a certain level of sales to be allowed the “honour” of being awarded a sole agency agreement.
Both a fixed financial amount or a legally-binding agreement to purchase a set number of units from an Asia marketing roadshow, have been made aware to me as being quite common.
Buy as a consumer, how would you feel knowing all studio units in your selected Pattaya development has been purchased by a real estate developer?
Does it matter that you would not end up buying property from the developer itself?
I am guessing that having all of one type of units in a development gives the real estate agent a significant marketing advantage, but one that could also cost them in the long run if those units fail to sell quickly.
I’d be really interested to know your thoughts on this business practice from a consumer viewpoint and also from that of a real estate agent.