Property agent and property managers have been helping many lands the right deals according to price and to their requirements.
Whether someone is looking to buy, sell or rent a property, these real estate agents are always willing to extend a helping hand.
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Real estate agents are famous for earning a hefty sum but there are various pros and cons attached to it.
Most of them are not promised paid a basic promised salary each month but instead rely on a commission-based income.
Having a strong sales history and being able to convince others is the key to earning a fair amount of income.
It’s important to note that the commissions of real estate agents in Malaysia are significantly influenced by the agreements they have with property owners, emphasizing the role of property owners in determining commission rates.
What Is Real Estate Agency?
Most of the property agents usually work in big corporations which function as Real Estate Agencies. These firms have clients who require services and assistance in terms of real estate matters.
Whether it’s managing a property, selling it, buying it, or renting it, property agent fees in real estate agencies are trained to take responsibility for these tasks.
Real estate agents who are licensed by the institute of estate agent are legally allowed to work for these real estate agencies.
Furthermore, a corporate real estate agency’s services also include representing and negotiating on your behalf with buyers. Some offer consultation as well and that includes bringing up fruitful deals to the clients.
How Can I Become A Real Estate Agent in Malaysia?
There’s a protocol one needs to follow if one aspires to become a real estate agent in Malaysia. The process can be slightly challenging at first but it’s worth the effort.
The first step is to decide what kind of real estate agent you would like to be. Knowing your specialty is important.
Going through the requirement of becoming a real estate agent is necessary as well so you can plan your house and future accordingly.
Along with being a Malaysian and having credits in SPM, one needs to be recognized by Jabatan Perkhidmatan Awam and The Board of Valuers, Appraisers, Estate Agent & Property Managers.
In order to get recognized, the candidates need to sit for examinations which are conducted in two parts. These consist of 6 courses that need to be passed so you can proceed to the next steps.
Here are 6 courses that you need to understand to pass the real estate exam:
Part 1: Subject
| Principles of Accounting | Property Taxation |
| Introduction to Law | Principles & Practice of Marketing |
| Principles of Economics | Building Technology 1 |
Part 2: Subject
| Land Economics | Laws Relating to Property |
| Estate Agency Law | Estate Agency Practice |
| Principles of Valuation | Building Technology 2 |
Gaining the right amount of experience and sitting for an interview is equally as important.
Once you’ve gone through these procedures successfully and the board of valuers approves your evaluation, there is nothing else that should hold your property agent fees you back.
Whether you’re looking forward to working independently or joining another estate agency, most opportunities are now open.
Is Real Estate Agent A Good Job in Malaysia?
Malaysia’s real estate industry has been booming for the longest time. During the covid-19 pandemic, for example, it faced a severe setback but is also one of the fastest recovering industries right now.
Due to the right demand for properties and the growing population around the country, estate agent and real estate agencies are always making money.
From the perspective of generating revenue, being a real estate agent is a good job in Malaysia. But there are some basic requirements before you can be a recognized estate or property agent commission you.
Estate agents and property managers need to be accepted by the institute of estate agents and the board of valuers.
If you’re passionate enough to sit for the exams, pass the application and become a licensed estate agent, it can prove to be a good job for you in Malaysia. Top firms in Kuala Lumpur and different cities are always on the hunt for talented property agent.
Read more detailed article about how much does real estate agent earns, where we interview Soma Sundram, who has more than 10 years experience in this industries
How do property agent earn their property agent commission in Malaysia?
Property agent commission rates in Malaysia vary significantly, influenced by factors such as the agent’s experience, the property’s location, and the type of property being sold.
These rates directly impact the earnings of both experienced and newly licensed property agents, offering opportunities for greater sales commission and referral fees but also posing challenges for career growth.
The direct correlation between property sales and the commission earned by agents underscores the importance of understanding these commission structures.
These property agent don’t necessarily work for an agency but are a part of the institute of estate agents and property managers in Malaysia.
The commission an agent earns is often a percentage of the property’s sale price or the property’s selling price, which highlights the significance of exclusive and sole agents in securing higher commissions through successful property sales.
In order to understand this better, one must know the different types of independent real estate agents which are present in Malaysia serving the industry in their own way.
Exclusive Agents
These types of agents tend to work on a contractual basis and are the only ones committed to selling or subletting your property.
Signing them is a major agreement since whether they are responsible for selling or subletting your property, they still get to take fees and receive the commission.
These agents are quite remarkable at what they do and they tend to prioritize your needs.
Making money as an exclusive agent in Malaysia can be quite rewarding since property prices are fairly high which leads to a higher commission. However, not many tend to pay to hire an exclusive agent.
Sole Agents
Many sellers in Malaysia prefer hiring Sole Agents since they will only receive the payment if their real estate services brought an interested party.
Top real estate agents especially in Kuala Lumpur make a good amount of money through this practice.
Hiring a Sole Agent gives one flexibility while receiving the services of a professional. Most Sole Agents seem to be satisfied with their earnings since their commission on a transaction fee is about 3% as stated by the Malaysian Institute of Estate Agents.
Another method of earning money and making the right amount of commission is by working for a real estate agency. Top agencies like IQI Global Real Estate, Hartamas Real Estate, and others are always looking for talented agents to join the team.
Here are a few top estate agencies around the Klang Valley through which agents can earn a handsome amount agent commission in Kuala Lumpur, Malaysia:
1. IQI Global Real Estate
As an agency that has spread its wings across the borders, IQI Global has a reputation for encouraging its team of estate agents and property managers.
They have become a wonderful source of income for their talented and professional estate agents. They are currently based in Petaling Jaya and are an award-winning real estate firm of the year.
Their team has almost 2,100 dedicated estate agents who are investment and property experts. As a rapidly expanding agency, they are truly giving agents the chance to earn more money in Malaysia and around the world.
2. Hartamas Real Estate
Hartamas Group has been in the real estate industry for more than two decades now.
They’ve managed to establish themselves as a corporate real estate agency and offer a wide range of services including consultation, buying, selling, and renting various properties around Kuala Lumpur and other major places in the Klang Valley.
In 2020 and various other years, they have been the real estate firm of the year. They value their talented team of real estate agents and compensate them well through commission and other benefits given they are a part of the Board of Valuers, Appraisers, Estate Agents, and Property Managers.
The Standard Commission for Real Estate Agents in Malaysia
According to MIEA the sales commissions for purchasing subsales and secondhand property in Malaysia are as low as 3.00 per cent.
The agent must have the right to an agreed commission between the agent and the developers in the instance of sale of an existing development by mutual agreement.
In addition to percentage-based commissions, agents often deal with a ‘minimum fee’ structure, especially in rental transactions, where for house rentals, agents usually charge a minimum fee of one month’s rent, subject to a minimum fee of 1 month’s rental.
Alternatively the property agent could expect to make up to RM15k excluding sales and service tax. But that requires a well-developed marketing strategy as well as a well-developed negotiation skill.
How Real Estate Commissions Work
A listing deal can be negotiated through an agreement between a buyer or seller and a listing broker, typically formalized in a purchase agreement, often referred to in the terms of a listing as compensation.
This purchase agreement, including the sale and purchase agreement or sales and purchase agreement, plays a crucial role in formalizing the commission agreement between the parties involved.
The commission may be agreed upon by negotiation, with the signing of the sale and purchase agreement marking the point at which estate agency fees are due, emphasizing the legal significance of these documents in the negotiation process.
Additionally, selling a property involves various costs, including the real property gains tax (RPGT) in Malaysia, which affects the selling price and, consequently, the overall cost, including agent commissions.
The aforementioned stipulations are a violation of the federal antitrust laws. In history, commissions range in value from 5% to 6%, although this can differ depending on market conditions.
Note that the rates will be changed in March 2020 if changes to the policy are taken into account.
Conclusion
As a property agent in Malaysia, one has many opportunities at hand to make a fair amount of money. The ones who are enthusiastic and passionate enough even end up finding unique ways to make a strong passive income.
If you’re looking to enter the industry, your ability to research and communicate can take you a long way indeed.
IQI is a leading real estate agency, with over 30,000 property professionals in 20 countries around the globe. Join us to become a changemaker in the real estate industry!
