The real estate market in Thailand is experiencing active growth, and this growth leads to the emergence of new developers on the market. And if in the segment of finished real estate this criterion can be pushed aside, then when you are considering buying in a construction site – this is one of the 3 key indicators that influence the choice of a particular project.
I will start, perhaps, with the tricks that you can encounter.
False start of sales
At some point, this phrase became a trigger for increased interest from investors, but unscrupulous developers decided to use this trick.
Sometimes clients come to us with a question about a new start of sales in some location, and then it turns out that this project has been on sale for more than a year. And there is no smell of any first or even second prices there.
Passing off a construction company’s portfolio as your own
The developer engages a construction company as a contractor (by the way, large developers usually have their own builders), and instead of their background of completed projects, talks about the projects of this construction company.
But you need to understand that the developer is the person who pays for the construction, and if at some point the financing runs out, then the “famous” builders get up, bow and leave the site. Hence, you need to carefully study whether the developer is substituting concepts.
Inflated discounts
Truly reliable projects are not sold with discounts! Just as it is impossible to buy a brand new Mercedes with a 50% discount, there will definitely be some significant BUT, which, as a rule, costs a lot.
Therefore, when you are offered incredible conditions, because “only today”, “only for you”, “unique conditions”, “pool with a 40% discount”, it is worth thinking about.
Another trick is when after visiting the developer (especially when you did it without an agent) the next day the project managers start calling you and pressuring you that if you come with a deposit today, you will receive an “individual” discount.
Reliable developers do not have such cheap manipulations, they will not write and call you, and the terms of purchase do not change).
A lot of promotions
It is a separate song when the developer comes up with any tricks, just to make you buy from him.
A high contract (first) payment is generally a big stop sign to buy.
All major developers work on clear and adequate figures:
✅Title – 25%
✅Botanika – 28%
But there are newcomers, without a portfolio, who set the first payment at 50%.
It’s worth thinking about: is there money for construction? Will this project be implemented at all, or is it just a collection of money and an outright scam?
Situation 1
The developer offered a 20% commission!
These are simply incredible figures. I know how much goes into marketing, construction, etc., and no developer would be able to pay such a fee if they were really going to build the project, and not just collect money to ride off into the sunset.
Situation 2
The developer, posing as a client, contacts the agency, tries to find out something about the market, and then says that he has his own project in Phuket, and it would be good to add it to the agency’s website and actively offer it.
A company that starts its acquaintance with deception and manipulation is definitely not the best candidate for cooperation.
What should you do if you still liked the project from a newbie developer?
Our answer is to be aware of the risks.
Our task is to tell you about them and warn you that this developer has no experience.
Your task is to weigh the pros and cons and take responsibility for your decision.