As with all businesses, first impressions are often the best; does the agency appear professional or is it simply a shop window with pictures in it? Does it have a comprehensive website with details of who the principals and staff are? What are their qualifications?

Assuming you've found yourself a competent professional agent (despite my previous observations there are several on Phuket), they should have a thorough knowledge of the property market in their area. They should be able to show you the best (if not all) properties and developments which fulfill your requirements and fall within your budget – including those that you may not have been aware of. More importantly they should know of any problems a developer or development has had, or might be facing. They will know the history of the developer and development or property and owner – especially important during a recession.

An agent should be familiar with all aspects of Property Law in Thailand and be able to advise on the benefits and downsides of the different types of ownership available, whether Foreign Freehold Condominium, Thai Freehold, Leasehold, Protected Leasehold, Offshore companies etc. He should be aware of currency restrictions, the movement of currency and the best way to get a good deal on currency.

Ironically, all professional and experienced investors use the services of an agent, whereas an 'amateur' (ie anyone other than a professional investor), might think he has a better chance of getting a good deal by going it alone. This is unlikely. An agent can usually negotiate a better price on behalf of his client for several reasons:

• The seller doesn't want to lose the agent, who is more valuable than a single client because of his access to many clients.
  
• The agent stays impartial and detached, whereas the buyer will often too easily show his hand and miss the opportunity to bargain.
  

I could give many examples of this, but perhaps the following is the best:

In one large scale development I had two clients at the same time, one an experienced Indian property investor with a huge portfolio, the other a canny (so he thought) buyer from Yorkshire. The former went on to buy eight properties of different types within the development and asked me to negotiate for him on each occasion. The latter bought one small condo and contacted me a year later wishing to sell his 'properties', sheepishly pointing out that he had bought a second property at the development, a larger villa, but had not contacted me as he thought he'd get a better deal going direct. The irony is that the first client had bought the same 20+ million Baht villa for 700,000 baht less through me – a big saving – and was able to enjoy my services to follow up the construction of the villa, send him photographs, keep him updated, give advice etc.

A good agent will not only assist you to make the purchase, he will advise on which lawyer you might use, whether an international or a local Thai law firm, follow up all the documentation, see through the build process if it's an off-plan purchase and, if required, rent it for you when it's not occupied. Most importantly he has local knowledge, an absolute imperative in any market. Most good developers have attractive sales and marketing material but, worryingly, so do the bad developers. Neither, of course, will point out any negatives about their development. A good agent should be a professional advisor and negotiator, not a salesman, and most of all remain unbiased, yet at the same time willing to voice an opinion based on his knowledge.

David Wade began his career in the UK Land Registry before becoming a surveyor, developer and real estate agent in England, Spain, Dubai and Thailand. He is also a freelance property journalist and has contributed articles for many leading local and international property journals. Tel: 081 787 1108, 081 808 8896. Email: david@tropical-homes.net
Web: www.tropical-homes.net