Who is a real estate negotiator?
A real estate negotiator (REN) is a licensed professional that works in the real estate market. They must be over the age of 18 and work full-time for a recognized company. A real estate negotiator (REN) can only work for one business at a time. REN is certified after completing a two-day training called the ‘Negotiators Certificate.’ Once they have confirmation of completion, a real estate business can apply to BOVAEA to be registered as a real estate negotiator (REN).
Difference between a sales negotiator and estate agent:
A real estate negotiator and a real estate agent are both certified professionals with the necessary certification to function in the sector, but in Malaysia, there is a distinction between a real estate negotiator and a real estate agent. Here’s our guide to these dedicated professionals’ jobs and responsibilities, so you can better comprehend the difference.
There are numerous significant elements that distinguish a real estate negotiator from a real estate agent (REA), and when it comes down to it, it’s primarily about experience and education. To become a Real estate agent, an individual must first complete a difficult and time-consuming qualifying process. This involves around two years of studies leading to a Diploma in Estate Agency, which is again supervised by BOVAEA.
But it doesn’t stop there. After completing the Diploma, a trainee real estate agent must undergo two years of practical training under the supervision of a fully trained Real estate agent. At the end of this term, they must submit a work log detailing their experience to the BOVAEA for assessment and approval. So, what is the distinction between a real estate agent and a real estate negotiator?
MAJOR DISTINCTION:
These are:
· Four years of career
· Higher education
· A lot of practice
· A final oral test
EASY DISTINCTION:
An easy way to remember the distinction and recognize whether the person is a sales negotiator or an estate agent is their tag color is the solution. A real estate negotiator wears a red tag whereas a real estate agent has a blue tag.
WHAT DO A REAL ESTATE NEGOTIATOR AND REAL ESTATE AGENT DO?
There are several restrictions on what a real estate negotiator may do and how they must function in order to keep a structured property sales market:
A Real estate negotiator cannot create their own agency and must always be affiliated with a recognized real estate business in order to function in the field.
A Real estate agent can start their own business. They can also have up to 50 RENs tied to the enterprise.
If a real estate agent wishes to start their own business, they can do it in one of three ways:
In a sole proprietorship, the company is held by a single individual who must be registered with the board.
The partnership has the same criteria but since it is made by two members both of them must be registered with the board.
Setting up a corporate business allows you a little more leeway because it simply necessitates at least two of the directors to be registered. If the corporate body is made of 6 directors the majority of them must be registered with the board.
HOW TO BE A REAL ESTATE NEGOTIATOR:
The route to becoming a Real estate negotiator is significantly less difficult than the epic adventure of becoming a real estate agent. That doesn’t imply you can just join up and be done with it. No one may work to sell or advertise real estate until they are authorized to do so. There is a procedure that entails a two-day curriculum called the ‘Negotiator’s Certification Course,’ during which you will be taught:
· The fundamentals of the real estate business
· Legislation in this area
· The best practice
· Working within the industry is required to meet certain standards.
The candidate will get a certificate of attendance once the course has been completed. They then must find a suitable company to support their request to be a Real estate negotiator with that diploma.
The company then applies to BOVAEA for the REN tag. An individual is only qualified to work in Malaysia’s real estate business when they have gotten that tag and are affiliated with the firm.
It’s all that simple just obtain a tag and sell the houses. Now all you have to do is find bedtime in between all of your deal-chasing!
RULES THAT A REAL ESTATE NEGOTIATOR AND A REAL ESTATE AGENT MUST FOLLOW:
Please keep in mind that the Malaysian real estate business is strictly controlled by certain fixed rules and regulations. Both the real estate agent and the real estate negotiator must be registered with the Organization of BOVAEA Malaysia’s industry regulatory board, which is overseen by the Finance Ministry which stated several rules that are as follows:
A Real Estate Agent may only serve one side in a deal, whether the buyer or the seller. The Valuers, Appraisers, and Estate Agents Act of 1981 binds a Real estate agent to severe norms of behavior and legislation (Act 242). Any licensed REA or business that commits any infraction may face disciplinary action from the BOVAEA, which may include penalties, restrictions, or disqualification.
All advertising in publications and property websites placed by a Real Estate Negotiator (REN) must include the Company’s current E registration number, agency’s phone number, agency’s name, and REN numbers next to his/her cellphone number. The public may simply verify any REA’s or REN’s identification by visiting the official BOVAEA website.
Agents and negotiators are not permitted to place advertisements on tree stumps or street lamps. Illegal brokers who post adverts (without REN numbers) and conduct any other infraction under Section 30(i) of Act 242 face a fine of up to RM300,000 or detention for up to three years, or sometimes both.
In addition, illicit adverts detected by BOVAEA will be reported to the Malaysia Communication and Multimedia Commission (MCMC), which would ban and block the contact information. More details are available on the MIEA’s online webpage.
What Makes A Good Sales Negotiator?
The most popular position in the property market is that of a real estate negotiator. It’s a quick, challenging, but ultimately coveted competitive position. Here are some of the skills, qualities, and experience needed to be a great real estate negotiator, which will increase your chances of landing the position.
Be honest and approachable:
We all know that real estate negotiators have a poor reputation, so let’s chalk it up to a few rotten apples ruining the bunch. We mention this because being approachable and honest are two important characteristics. The job entails establishing connections with a variety of people, including buyers, sellers, solicitors, landlords, renters, references, suppliers, and contractors, to name a few. People’s trust and strong connections are earned by individuals who strike a balance of drive and likeability. Furthermore, never underestimate the power of favorable word of mouth.
Work with zeal and passion
To be successful in this field, you must have persistent dedication, motivation, and the desire to achieve your goals. We’ve already stated that an estate agent isn’t for the faints of heart; you must be aggressive and confident, experimenting with various techniques and approaches. The most effective negotiators are resolute and perseverant, driven by those all-important statistics but not to harm client relationships.
Stay Customer Centric:
Although it is target-based employment with the commission, what makes a real estate negotiator ‘exceptional’ is a customer-centric mindset and a commitment to provide good customer care. Empathy and listening abilities enable them to comprehend everyone’s different requirements and respond appropriately, seeing everyone as a person rather than a transaction. This method is significantly more effective than simply thinking about goals.
Resilient
Not every sale will go through, but skilled negotiators have the emotional power to shrug it off, learn from mistakes, and keep their concentration. Being tough and having a lot of patience are equally as vital as confidence and determination. It enables them to remain cool and think clearly under pressure; it guarantees that they continue to push forward and are hungry for the next chance.
A knack for selling
Not everyone can be a natural salesman, and while it is possible to learn, the most effective have a real knack for selling. It’s not about being forceful here; it’s about social intelligence and awareness. You must be able to effectively evaluate a situation, identify opportunities, and recognize when you are pounding a dead horse. Most essential, you must grasp the negotiating process: comprehend what impacts people’s behavior and what might influence the outcome, rather than perceiving it as a money bargaining game.
Get a fantastic mentor.
Training is essential, but having somebody who can teach you the way through mentoring you is much more beneficial. Any of the finest negotiators will tell you that they learned everything from the finest in the industry so if you can pick up strategies from a more knowledgeable person, you’ll be well on your way.
Communication abilities
It suffices to say that the finest real estate negotiators are also good communicators, understanding what they’re talking about and being able to communicate that message in an understandable manner. However, it is not just about how you interact, but also about how frequently you interact. Keeping customers and partners informed is critical to ensuring that the process runs successfully. Being a real estate negotiator is a hands-on, fast-paced, demanding, yet fascinating position that comes with numerous advantages, a lot of fun, and typically some terrific coworkers. Being a successful negotiator necessitates a wide range of abilities and qualities, but if this describes you, have a look at our available positions. In no time, you might be earning that commission!
How to Spot a Fraudulent Real Estate Negotiator or Agent
After all, is said and done, you’ll want to be sure you choose a legitimate real estate agent or negotiator. If you encounter a REN or REA in person, they are required by law to wear a name tag. As previously stated, the tag will be red for REN and blue for REA. This name tag should include all pertinent information about the professional’s credentials and registration number. And, owing to advancements in technology, cross-checking is now easier than ever. A REN tag should have a QR code that connects to its credentials.
If a REN is dismissed or steps down from their profession, they must return their REN tag to their employer, who then sends it on to BOVAEA. This is to discourage unethical behavior by brokers appearing to represent a company when they no longer do, thereby defrauding homebuyers! When it comes to marketing, any advertisements published in different mediums such as billboards, or real estate platforms must include the following:
· e-registration number for an estate agent
· Name of a relevant REN
· Their personal registration number
· Contact information
If they don’t have it, they’re most likely not legitimate. If you notice a shady banner attached to the side of a lamppost, it’s probably not authentic, and it’s actually illegal.
In addition, if you see any signboards that you think were put up by unlicensed agents, you may denounce them to BOVAEA by snapping a photo and giving the street name, day and time noticed, as well as your id number information. Once that is completed, BOVAEA will investigate it for confirmation before forwarding it to the Malaysia Communication and Multimedia Commission (MCMC), which will restrict and/or prohibit the contact number on the unlawful signboard.
The Malaysia Institute of Estate Agents (MIEA) provides concise instructions on what to do if you’re unsure whether an agent is legitimate, as well as a useful FAQ for the general public and professionals concerning the job of a REN. Meanwhile, the basic registration database offered by BOVAEA gives a convenient point of comparison to searching for a REN. Anyone discovered unlawfully performing the activities of an estate agent can be imprisoned for up to 3 years in prison and fined as well.
CONCLUSION:
To clarify the air and wrap up the piece, To the general populace, the terms real estate negotiator and real estate agent appear to have no distinction because they are used identically. The truth is that there is a significant difference between the two, which is described in-depth above. RENs are registered agents’ assistants, and they are not responsible for monitoring a real estate company’s activities, whereas REAs work independently and provide real estate services such as selling or renting out properties. Being a Real Estate Negotiator (REN) is a lot easier than being a Real Estate Agent (REA). Despite the lengthier time commitment and more severe standards for becoming an agent, many negotiators consider this to be their ideal objective, as a licensed agent is entitled to a superior division and salary. We hope that this article clarifies the distinctions for you and that it will assist you in the future when interacting with both. Congratulations on your home purchase in advance!
Are you searching for ways to reach for the stars of success?
Are you an individual with a burning drive to improve your skillset?
Don’t overthink – time to get it back by choosing IQI.
Through us, experience the many endless possibilities with IQI.
Grab the opportunity TODAY!