Version: BM
This article was written by K. Soma Sundram, a Registered Estate Agent with 36 years of experience.
The questions are in the air… one of them is: Who is a real estate negotiator and what is a real estate negotiator’s average salary and commission like?
As such this article serves as your guidance to explore the in-depth workings of a Real Estate Negotiator and how much salary and commission he/she can make or earn.
6 Things to Know About A Real Estate Agent Salary
- 1. Types of Practitioners
- 2. Qualities Real Estate Negotiators Should Have
- 3. How To Determine Real Estate Agent Salary?
- 4. Types of Sale and Commission Payments for Real Estate Agents
- 5. What Are the Commission Rates Given by Real Estate Agencies?
- 6. Can Real Estate Agents Get Any Incentives/Awards When They Achieve the Sales Targets?
- Conclusion
1. Types of Practitioners
There are three types of practitioners and a job career that you can choose from in the industry:
- i. Real Estate Agent (REA)
- ii. Probationary Real Estate Agent (PEA)
- iii. Real Estate Negotiator (REN)
The term ‘Agent’ is a misunderstood term and is used generally by the public referring to all involved in Malaysia.
To avoid misinterpretations, it is first important to understand the term ‘Real Estate Practitioners’ in Malaysia. Learn more about it here.
Now, let’s focus on the job career of Real Estate Negotiators and their salary and commission.
Having worked in this job profession for many years, we have received increasing inquiries about the real estate agent salary and a few other questions that everyone wants the answer but they do not get the full picture.
Starting a career as a Real Estate Negotiator is rather a bold move and they are normally attracted by how much salary and commission a real estate agent will earn in a month or years.
Salary and commission often rank highly as the ultimate deal breaker in pursuing a job career in the real estate industry.
2. Qualities Real Estate Negotiators Should Have
A successful person as a real estate negotiator generally practices or has these skills to reach or support where they are. Do you embody or experience any of them?
- An ability to chat, support, and deal with clients with ease
- Willingness to learn and work hard
- ‘Good ears’ to listen to people’s view
- Kind and enjoy helping people from all walks of life
- Having good discipline and work ethics
- Have a long-term vision to make this a career
- Have a deep desire to succeed in life
- Have leadership skills & take personal responsibility
If your answer is yes, yes, yes to at least five of the eight statements above, your why has become why not?
3. How To Determine Real Estate Agent Salary?
Agencies or firms employ Real Estate Negotiators either on:
- Contract of Service: where you receive a basic salary and a low sale commission payment structure
- Contract for Service: where you are an independent contractor and receive zero basic salary with a higher sale commission payment structure
The real estate agent salary (or basic salary if any) and commission structure varies by agency or firm, so remember to check with your employers or any written document before proceeding with your project marketing.
Real estate agents control their salaries by investing their time, energy, and effort to maximize the opportunities available.
In IQI, we have real estate negotiators who have achieved up to 7-digit worth of income levels in a year!
4. Types of Sale and Commission Payments for Real Estate Agents
a. Secondary market or subsales
The Board of Valuers, Appraisers, Estate Agents and Property Managers (BOVAEP) mandates a minimum payout of 40%, with variations based on individual firm practices and performance. Seniority and transaction volume may influence higher payouts, but all rates must comply with the guidelines set by BOVAEP.
b. New projects – Marketing new developments
Property developers often offer higher commissions. However, as per BOVAEP’s rules, firms may provide additional incentives beyond the regulated fee.
For official fee structures, refer to BOVAEP’s guidelines here.
5. What Are the Commission Rates Given by Real Estate Agencies?
A real estate negotiator generally collects a professional fee of 3% on the sale value of a property when it is sold.
e.g. You sold a house for RM500,000. So, RM500,000 X 3% = RM 15, 000 (fees collected from the project seller).
If your firm’s commission structure payout is 40%, you will be paid RM15,000 x 40% = RM6,000.
In the case of rental transactions:
e.g. You rented a property for RM2,000, so RM2,000 x 1.25% = RM2,500 (fees collected from the property landlord).
If your employer’s commission structure payout is 40%, RM2500 x 40% = RM1,000.
6. Can Real Estate Agents Get Any Incentives/Awards When They Achieve the Sales Targets?
Apart from commission earnings, there are many incentives and awards available to real estate agents.
It varies from project to project, the region, and achievement at the overall company level.
At IQI, we recognize and award real estate negotiators who reach their full potential in their careers and achieve value in their personal lives.
Exciting rewards/incentives are offered to the real estate negotiator to motivate them further.
These incentives come in several categories. Real estate agents get to choose global travel destinations like London, Osaka, Seoul, Dubai, etc., or receive luxury awards that include grand luxury cars like BMWs.
Conclusion
Being a real estate agent is a challenging profession where hard work, a good attitude, and ethical standards are all important factors.
Real estate agent salary, earn, or pay varies depending on the real estate agency or employers you join in Malaysia. They earn a different basic salary and commissions depending on how many properties they have sold to their clients and company.
Money is never the main goal; it’s about helping people.
The real estate industry offers boundless potential for those seeking a rewarding career, and at IQI, we empower individuals to achieve their goals. With 23 branches nationwide, IQI provides hands-on training and mentorship to help new real estate agents refine their skills and build successful careers.
This article was authored by K. Soma Sundram, a registered estate agent with 36 years of experience. Soma has trained over 200,000 agents and authored the National Certification Course (NCC) for real estate negotiators.
Learn more about K. Soma Sundram on LinkedIn.
Are you searching for ways to reach for the stars of success?
Are you an individual with a burning drive to improve your skillset?
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Continue reading:
1. Why You Should Pursue a Real Estate Career in Malaysia
2. Are Real Estate Estate Negotiators The Same As An Agent?
3. Want to Become A Real Estate Negotiator With IQI Malaysia? Here’s How To Sign Up!
