How To Become A Property Agent in Malaysia?
Updated: Oct 11, 2019
In this article, you will be learning ways to become Property Agent in Malaysia.
Have you ever dream of becoming property agent with Ferrari-driving and Armani-wearing, living multi-million Ringgit of mansion? Look, it's not as easy as you think.
The truth of being a property agent is, it involves a lot of hard work and discipline, instead of becoming multi-millionaire within one night. Property agent requires a lot of studies and knowledges as well in order to acquire a agent license.
So now you had made up your mind for becoming a property agent? Well, you're in the right place.
How's A Property Agent's Looked Like?
Rule #1: you have to work really hard!!!
Look, property agent earn averagely about RM10,000 per deal, based on the current average property price. And you are expecting 8-hour working hour per day? No way! Property agent has to work way more harder than a normal employee.
Property agent does not has a fixed income; market is unstable and unpredictable, and sometimes you’ll have to deal with some awkward people. Sometimes property agent's life is awful.
But the great thing is, you’ll also get to make some customers happy and satisfying, and able to sell properties with great deal; all these can be easily paid off with very good commission.
What Type Of Property Agent Exist in Malaysia?
There are two roles in Malaysia property market: (1) real estate agent (REA), or (2) real estate negotiator (REN). We’ll first begin with real estate negotiator (REN).
REN must be registered with Board of Valuers, Appraisals, Estate Agent and Property Managers (BOVAEA). In order to become a REN, they must attend a two-day course, known as Negotiator’s Certification Course (NCC). All basics of real estate law, knowledge, practice and regulation will be taught in this course.
After attending NCC, you will be given a certificate of attendance, and now you are able to attach to a real estate firm under a real estate agent license, in order to begin your journey in real estate industry. A qualified estate agent is only limited to 50 negotiators within a firm.
Wait, Can Anyone Become A Real Estate Agent? For real estate agent, is slightly different from negotiators, whereby there are number of requirements and qualification to be met, as listed below:
Must be a Malaysian or Permanent Resident
Must hold SPM certificate with no less than 5 subjects pass, of which at least 3 subjects must be credits.
One of the credits must be Mathematics, Science, Commerce or Accounting
Candidates who do not have SPM qualification, but have obtained higher qualification recognised by Jabatan Perkhidmatan Awam, and Malaysians Qualifications Agency may be considered.
OK, How Can I Become A Real Estate Agent?
There’s lot of hard work, studies, exams, and experience in order to become a licensed real estate agent. The journey can be simply broke into 4 steps:
Step 1 - Examination - Part 1
There are 6 examination papers in part 1, with each exam cost RM50 per subject, and a RM50 processing fees. To those who had already have majored in property-related courses, and have obtained similar degrees can be exempted from estate agent written examination.
Step 2 - Examination - Part 2
Yeah, you're right, there are more exam papers in part 2. Part 2 consists of 6 courses as well.
It generally takes you around 2 years to complete all examination in part 1 and 2. From then, you can move on to Step 3.
Step 3 - Experience
Now, all examinations are over. You are ready to get the field. You need to register yourself as a probationary estate agent (PEA), and undertaking a two-year practical in the field.
PEA must be attached to a registered and accredited real estate agency, which also requires you to maintain a work log of your daily activities for two years.
Step 4 - Interview
Throughout two years of practice, you will gain plenty of experiences from the field. You will undergo Test of Professional Competence after full-two-year of writing log book.
At this step, you should buy a copy of the Rules & Guidelines to the Test of Professional Competence for Estate Agency Practice from BOVAEA prior to this exam. There's another part of examination which is in oral form, and this is your show time to demonstrate, story telling everything you've gone through over past two years.
And vola! If you pass, you are all ready to sign up as licensed real estate agent in Malaysia!
How Much Can A Real Estate Agent Earn?
I guess this will be the most exciting part for most of the people. How a Real Estate Agent earn for their career life?
1) Maximum agency fees of 3% from transacted deal
REAs earn a maximum of 3% of transacted price of any real estate property.
2) Minimum agency fees of RM1,000
There's a minimum charges of RM1,000 on any transaction.
3) Maximum agency fees of 10% on Chattels
Besides real property, REAs can also earn up to 10% of the sales of chattels, such as furniture, plant, equipment, machinery etc.. This usually happens in transaction of commercial or industry properties.
Other than sale transaction, REAs do charge agency fees on rental transaction. Of any rental transaction, agency fees are listed as below:
- Rental up to 3 years - 1.25 months of gross rental amount
- Rental 3-4 years - 1.5 months of gross rental amount
- Rental 4-5 years - 1.75 months of gross rental amount
- Rental 5 years and above - 1.75 months of gross rental amount
- Rental more than 5 years with option for renewal - 1.75 months of gross rental amount + 0.25 months rental for each additional renewal year
For rental less than 1 year, is still subject to a minimum charge of 1 month's gross rental value as agency fees, and these fees is not applicable to serviced offices or apartments. Above information can be found in BOVAEA's website.
So, how do you think from the fees listed above? What does it mean to you?
As a property agent, the amount you make is how hard you work. The more deals you close, the greater values return to you. The beauty of real estate agent income is, it is the only income in the world, increases linearly along with GDP growth of a nation.
Imagine property price in past 30 years, a terrace house cost averagely RM50,000; closing a deal on this property will earn you RM1,500. Current year, a terrace house easily cost RM500,000; and you're right, you will earn RM15,000 for a single deal like this!
If you are dreaming of a Ferrari, or a mansion, it may not be on the horizon. With dedication, commitment, and perhaps a little bit of luck, you have no reason and nothing will stop you from getting there in one fine day.