Negotiations with owner of real estate on Phuket: how to reduce price safely

Negotiations with owner of real estate on Phuket is not bargaining at market, but strategy that can save you millions. Unlike Russia, where price is often fixed, on Phuket bargaining is norm, but it must be conducted competently, without risk of offending seller or losing transaction. Correct approach to negotiations with owner allows to reduce cost of object by 5–15% without loss of quality of transaction and legal purity. How to do this safely and effectively, we analyze in this material.

Bargaining is appropriate with facts. 8–14 months on sale — seller more often concedes 3–7%.

Arguments

• Exposure period
• Condition vs analogues
• Competitors within 1 km
• Low season

Deposit

200–500 thousand baht, refund in case of failure of DD on encumbrance, boundaries, taxes.

Mistakes

Bargaining before inspection. Oral promises. Contract without lawyer in Thai.

How we conduct

Table of 3–5 analogues + justified offer. Goal — fair price and safety.

Maximum bargaining is meaningless if transaction falls through due to dispute over 200 thousand.

When bargaining is appropriate

Object 8–14 months in exposure, condition worse than analogues, low season, competitors reduce price within radius of kilometer — arguments for justified offer. Bargaining for sake of bargaining without facts breaks trust and transaction.

Deposit and due diligence

Resale standard: 200–500 thousand baht after agreement of price. Condition of refund in case of failure of DD on encumbrance, boundaries, taxes, prohibition of short-term. Deposit should not be non-refundable “just because”.

Mistakes of buyers

• Aggressive bargaining before inspection and check of title
• Oral promises of seller without fixation in contract
• Contract without lawyer, not reading Thai version
• Greed: breakdown of transaction due to 200 thousand baht while saving on DD

How we conduct negotiations

Table of 3–5 analogues with price, area, exposure period. Justified offer with justification. Goal — fair price and safe registration, not “to knock out maximum at any cost”.

Maximum bargaining is meaningless if transaction falls through due to dispute over 200 thousand baht.

Negotiation scenario step by step

1) Analogues and exposure. 2) Inspection and engineer. 3) DD title. 4) Offer with justification. 5) Deposit with conditions of refund. 6) Full settlement and Land Office. Between steps 3–7 days is normal, haste breaks bargaining.

What is not negotiable

Registration fees, notary, transfers — fixed expenses. Bargaining goes on price of object and included furniture. Seller who “does not bargain at all” with 11 months of exposure often concedes after third offer.

Need help with offer

Write to us parameters of object — we will prepare justification for negotiations and structure of deposit with protection of buyer.