Choosing the right property agent is a critical first step when embarking on any real estate transaction, and this holds especially true in the vibrant and diverse property market of Malaysia. With a variety of options and developments across the country, it is essential to have a skilled and knowledgeable professional by your side to guide you through the process.
Whether you are buying, selling, or renting a property, the expertise, attitude, and network of your property agent can significantly impact the outcome of your venture. In this guide, we will learn and explore the factors to consider when selecting a good property agent in Malaysia, helping you make an informed decision and ensuring a successful and satisfying real estate experience.
Get to know the top property management companies and real estate agencies in Malaysia to find trusted partners for your property needs:
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1. Check for the Certification and License
Ensure the property agent is licensed by the Board of Valuers, Appraisers, Estate Agents, and Property Managers Malaysia (BOVAEP). A valid license is a legal requirement to practice as a real estate agent in Malaysia.
Click here to check whether or not your property agent is licensed.
Hiring a licensed property agent is crucial for several important reasons:
- Legal Compliance
Licensed property agents in most jurisdictions, including Malaysia, are required to adhere to a specific set of rules and regulations. By hiring a licensed agent, you ensure that they are operating within the legal framework, protecting your interests and ensuring that your real estate transaction follows the law. - Professional Qualification
To obtain a real estate license, an agent typically needs to meet certain educational and training requirements. This means that licensed agents have basic professional knowledge and expertise in the real estate field, which can be invaluable when navigating complex property transactions. - Market Knowledge
Licensed agents are required to stay updated on market trends and changes in real estate laws. This ensures they can provide clients with accurate and current information, helping them make well-informed decisions. - Negotiation Skills
Licensed agents typically undergo training in negotiation and communication skills. This is especially important when it comes to achieving the best possible deal in a real estate transaction. Licensed agents can use their negotiation skills to their advantage.
2. Knowledgeable about the Area and Developer
A good property agent should have a deep understanding of the local property market, including knowledge about specific areas and the developers operating there. They should be able to provide insights into the neighbourhood, schools, amenities, and future developments.
Possessing a wide knowledge of the area and developer is a crucial criterion for a property agent for several compelling reasons:
- Market Trends
An agent who knows the area is better equipped to provide insights into current market trends. They can advise clients on the best times to buy or sell based on local conditions, ensuring that clients make informed decisions. - Local Expertise
A property agent who is well-versed in the local area possesses an in-depth understanding of the neighbourhood, its amenities, schools, transportation, and safety. This local knowledge is invaluable when helping clients find properties that match their specific needs and preferences. - Developer Reputation
Understanding local developers and their track records is vital. Experienced agents can guide clients toward developers known for quality construction, reliability, and adherence to legal and ethical standards, reducing the risk of problems with a property down the line. - Matching Client Needs
Knowledge of the area and developers allows agents to match clients with properties that align with their lifestyle and investment goals. This ensures clients do not waste time on unsuitable properties.
3. Able to Discuss the Agent Fee
Make sure to openly discuss the agent’s fees and commission structure at the outset, ensuring a clear understanding of how the agent will be compensated. This transparency is important to determine if the compensation structure aligns with your budget and meets your expectations.
What is the average range of property agent fees in Malaysia?
The average property agent fees in Malaysia typically range between 2% to 3% of the property’s selling price for both seller’s and buyer’s agents. However, these percentages are often negotiable, and additional taxes like the Goods and Services Tax (GST) may apply.
Example:
Suppose you are selling a property in Malaysia with a selling price of RM500,000. Your agreement with the seller’s agent states a commission fee of 3% on the selling price.
To calculate the agent’s commission:
- First, convert the percentage to a decimal by dividing by 100. So, 3% becomes 0.03 as a decimal.
- Multiply the selling price by the agent’s commission rate to find the commission amount:
Commission = Selling Price × Commission Rate
Commission = RM 500,000 × 0.03
Commission = RM 15,000
Therefore, the agent’s commission for selling the property with a RM 500,000 selling price at a 3% commission rate would be RM 15,000.
4. Has a Positive Attitude
The agent’s attitude and professionalism matter, so choose an agent who is responsive, communicative, and listens to your needs and concerns. A positive attitude and good interpersonal skills can make the buying or selling process smoother.
Defining a property agent with a positive attitude can be described through several key points:
- Optimism
A positive attitude is characterised by a hopeful and optimistic outlook on challenges and opportunities in the real estate market. - Proactiveness
A positive agent takes initiative, actively seeking solutions and opportunities for clients. - Client-Centric
They prioritise the client’s needs and concerns, demonstrating empathy and a strong commitment to achieving their goals. - Professionalism
They uphold a high standard of professional conduct, including punctuality, honesty, and ethical behaviour.
5. Possess Great Negotiation Skills
A competent property agent should demonstrate exceptional negotiation skills, capable of securing the most favourable terms whether you are a buyer or seller. Seek an agent who can effectively reach a mutually satisfactory agreement for all involved parties.
A property agent’s excellent negotiation skills can significantly impact the entire process of buying or selling a house in several ways:
- Achieving Optimal Price
For sellers, a skilled agent can secure a higher selling price, maximising the return on the property. For buyers, they can negotiate a better deal, potentially saving money on the purchase. - Faster Transactions
Effective negotiation can expedite the process by swiftly resolving differences between the parties, reducing the time it takes to close the deal. - Mitigating Disputes
Skilled negotiation helps prevent misunderstandings and disputes that can arise during the transaction, leading to smoother, less stressful experiences for all parties.
6. Ask for the Track Record
Request information about the property agent’s past performance, including their track record of successfully closed transactions and feedback from satisfied clients. Evaluating their history of achievements and client testimonials can offer valuable insights into their competence and effectiveness in the real estate industry.
When reviewing a property agent’s track record, consider checking the following aspects to assess their performance and competence:
- Number of Transactions
Examine how many real estate transactions the agent has successfully completed. A higher number may indicate experience and a strong track record. - Types of Properties
Evaluate the types of properties the agent has dealt with, such as residential, commercial, or industrial. Their specialisation should align with your real estate needs. - Area Expertise
Determine if the agent has experience in the specific geographic area where you are interested in buying or selling a property. - Average Days on the Market
Ask for the average time the agent takes to sell a property. A shorter average time may suggest effective marketing and negotiation skills. - List Price vs. Sale Price
Analyse whether the agent typically achieves sale prices close to or above the listing price. This indicates their ability to negotiate favourable terms.
7. Effective Marketing and Broad Exposure
If you are selling a property, ask about the agent’s marketing strategies. A good property agent should be able to effectively market your property to a wide audience through online listings, social media, and other channels.
There are various popular online listing websites in Malaysia where your agent can market your property. Here are some of the examples:
These platforms are widely used for marketing and selling properties in Malaysia, offering various tools and features to connect sellers with potential buyers. Listing your property on multiple websites is a good practice to maximise exposure.
8. Boasts an Extensive Local Network
A property agent with extensive industry connections can provide access to off-market opportunities, giving you a competitive advantage in tight real estate markets. Their strong network within the real estate industry opens doors to exclusive options that may not be readily available to the general market.
A good property agent should have a diverse and extensive local network, including:
- Other Real Estate Professionals
Connections with other agents, brokers, appraisers, and real estate attorneys are important for cooperation, exclusive property access, accurate valuations, and legal support, all of which help their clients in real estate deals. - Local Service Providers:
A property agent’s connections with contractors, inspectors, property managers, and lenders can help them access reliable professionals who can assist in property maintenance, inspections, and securing financing, ensuring a smooth and well-managed real estate process. - Market Analysts
Close connections with economists and data analysts enable them to access expert analysis of real estate trends, economic factors, and data, which can inform and guide their clients’ property decisions.
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Disclosure: This list was compiled by the team at My Weekend Plan after extensive research and shared opinions to suggest helpful recommendations for the public. The sequence of brands is in no particular order so if you have any other great suggestions too, please email us support@myweekendplan.asia. For more information, kindly refer to our copyright, privacy & disclosure policy.
