Written by: Sr. KC Law, Principal & Valuer at Action Real Estate & Valuers
1. You have flexibility of time
You are not bound to the 9-to-5 office hours. That means saying goodbye to the frustration of being stuck in bad traffic every morning. You are your own boss, you determine and set your day-to-day-schedule that best suits you and your clients. If you dislike to do viewings on weekends, then the best option would be to consider commercial real estate. There is no specific work hours, if you wish to work only 5 hours per day, as you wish! Perhaps by doing so, you would finally be able to make it to the gym and fulfill your resolution of living a healthy lifestyle! Solely due to this benefit, many retirees or even house wives are turning to real estate business.
2. Have ownership over your own business growth
Being a real estate negotiator is equivalent to running your own business. You are your own boss! You get to decide where and which areas you like to specialize in, type of properties you like to sell (industrial, commercial or residential), execute your own marketing strategies and see the results they bring. You also have more control over your own business management and business plans, because you practically own the business! Your customer base will still be the same even if you move to a different company. Comparing this to other businesses, real estate business demands minimal operating and overhead costs. Majority of the costs involved are marketing related costs.
3. No limit to how much you can earn
Most real estate negotiators do not get paid a basic salary. Their income does not depend on their seniority or years of service. Some fresh newbies can even earn more than senior real estate negotiators simply because they are hard working, committed, innovative and creative in the way they run their business. Real estate negotiators’ income comes in the form of commissions from selling a property/renting out a property, which is typically about 2-3% of the transacted property value and 1 to 1.75 month’s rental/lease (based on duration of tenure) respectively. Of course a small portion goes to the estate agency at which they are attached to. For example, selling a bungalow worth RM 2 million, will entitle a real estate negotiator RM 60,000 in commission (assuming 3% commission). There is no limit to how many properties he/she can sell within that month, the only limit is themselves! This certainly does not come as a breeze. It takes consistent effort, hard work, commitment, creativity, intuition to build goodwill and trust among sellers and buyers.
4. You get to find good property deals for yourself
Apart from the day to day selling or renting of their client’s properties, real estate negotiators should also have sound property investment knowledge to be able to speak the same lingo as their investor clients. What better way to develop property investment knowledge than being an investor yourself! Being a real estate negotiator, you are already on the field looking out for good property listings, when you come across deals worth investing, you are in the front of the line to grab it! Many a times while looking for listings, I would end up being the purchaser.
5. You get to leverage on others
Being a real estate negotiator allows you to leverage on other real estate negotiators when you collaborate and do a co-agency. For example, if you have a listing but have not found a buyer, you can collaborate with another real estate negotiator who has a buyer. This way you get to leverage on their customer base, and they in turn leverage on your listing. It is a win-win situation.
6. You get to help others
Start by focusing on a small area, and work hard to build your reputation in that area and you will soon be an expert and go-to real estate negotiator within the area. It is fulfilling, satisfying and rewarding to help others with potentially their biggest and most complicated transaction of selling or purchasing a property.
7. It is a regulated profession
There are many illegal real estate negotiators in the market in recent times, which pose a risk to the public and also jeopardize the real estate profession. In response to this, the Board of Valuers, Appraisers and Estate Agents (BOVAEA) Malaysia has implemented measures to ensure high level of standards and professional code of conduct are adhered to by all real estate negotiators to protect the interests of both the real estate industry and the public. It is compulsory for ALL real estate negotiators (new projects/sub-sale) to be certified by the Board before they are allowed to practice. By ensuring that you are a certified negotiator, and wearing your REN tag (How to obtain a REN tag is described below) during viewings, you set yourself apart from the other illegal brokers in the market. Besides that, you are protected by law to collect a fee of commission for the service rendered for selling or renting out the property. (Read more about the Law here)
General requirements for becoming a real estate negotiator
1. Any person above the age of 18 years with Sijil Pelajaran Malaysia (SPM) qualification or above.
2. Must be attached with a Registered Real Estate firm (company that have E license issued by the Board) on a full time basis.
3. He/she must attend a 2 day Negotiator Certification Course (NCC) approved by the BOVAEA to obtain a REN tag (issued by the Board)
4. To obtain a REN tag, the applicant must have
– an employment letter from a registered firm he/she intends to work with.
– copy of his/her NRIC (work permit is required for a non-resident)
– complete a form prescribe by the Board.
– copy of passport size photograph.
Within 2 to 3 weeks REN tag will be issued by the Board.
P/S: Why being a certified real estate negotiator is important? As per the Act, any person not certified by the Board is not entitled to have his fee pay for real estate services. In addition, as per the Act, it is an offense punishable of RM300K or 3 years jail or both.
Interested applicants may send their resume to firstname.lastname@example.org
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About the Author
Sr. KC Law is a Registered Valuer, Estate Agent and Property Manager with The Board of Valuers, Appraisers, Estate Agents and Property Managers (BOVEAP) of Malaysia. KC Law is also an electronic engineer registered with the Board of Engineer Malaysia (BEM) and received his engineering training from Tunku Abdul Rahman College Malaysia and later at Hatfield Polytechnic United Kingdom. In the 1990’s he was involved with the digital transformation of Telecommunication infrastructure for Maxis and Telekom Malaysia. His passion for Real Estate in the 2000s led him to practice as a real estate negotiator in Ace Realty and later valuation and property management in Rahim & Co International. Several years later he founded Action Real Estate and Action Valuers & Property Consultants. His areas of expertise are in Real Estate Agency, Property Valuation, Property Management and Business Valuation. He is Member of The International Association of Certified Valuation Specialists of Canada, Member of Royal Institution of Surveyor Malaysia and Member of Malaysia Institute of Estate Agents.