How Much is A Real Estate Agent’s Salary? 6 Things to Know About A Property Negotiator’s Income Potential

This article was written by K. Soma Sundram, Registered Estate Agent with 36 years of experience.

The questions are in the air… one of them is: Who is a REN and what is a REN’s income like?

As such this article explores the in-depth workings of a Real Estate Negotiator and how much income he/she can make.

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1. Types of Practitioners in Real Estate

There are three types of practitioners and a career path that you can choose from in Real Estate:

• i. Real Estate Agent (REA)
• ii. Probationary Real Estate Agent (PEA)
• iii. Real Estate Negotiator (REN)

The term ‘Agent’ is a misunderstood term and used generally by the public referring to all involved in real estate.

To avoid the misinterpretations in the market, it is first important to understand the term ‘Real Estate Practitioners’ in Malaysia. Learn more about it here.

Now, let’s focus on the career path of a REN and their income levels.

Having worked in this profession for many years, we have received many inquiries about the average income of RENs and a few other questions that everyone wants the answer but they do not get the full picture.

Starting a career as a REN is rather a bold move and they are normally attracted with how much income they will earn.

Income often ranks highly as the ultimate deal breaker in pursuing a career in real estate.

2. First Of All, Why Choose a Career in Real Estate?

• Limitless opportunity to be a top income earner
• Flexibility of time & work
• Independence of building a career
• Helping people realize their dreams
• Adding value to your personal growth

Do You Have These Qualities?

• An ability to chat up with people with ease
• Willingness to work hard
• ‘Good ears’ to listen to people
• Enjoy helping people of 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 Much Does A Real Estate Negotiator Earn?

RENs are employed by real estate firms either on:

• Contract of Service: where you receive a basic salary and a low commission payment structure
• Contract for Service: where you are an independent contractor with a higher commission structure payment

The salary payout and commission structure varies by firm, so remember to check first.

Generally, how much one can earn is left to the individual REN who is willing to invest his time, energy and effort to make best use of the opportunities available.

In IQI, we have RENs who have achieved up to 7-digit income levels in a year!

4. Types of Commission Payments

a. Secondary market or subsales

This is where a minimum of 40%* is paid out and it escalates to higher levels based on performance and seniority and it varies with firms.

b. New projects – Marketing new developments

Generally, developers pay out a higher professional fee and that in turn is incentivized to RENs.

*Disclaimer – the legal payout rate is fixed by BOVAEP. However, firms may choose to pay incentives to motivate RENs.

5. What are the commission rates like?

When a property is sold, a REN generally collects a professional fee of 3% on the sales value of the property.

e.g. You sold a house for RM500,000. So, RM500,000 X 3% = RM 15, 000 (fees collected from the seller).

If your firm’s commission structure payout is 40%, you will be paid RM15,000 x 40% = RM6,000.

In the case of a rental transaction:

e.g. You rented a property for RM2,000, so RM2,000 x 1.25% = RM2,500 (fees collected from the landlord).

If your firm’s commission structure payout is 40%, RM2500 x 40% = RM1,000.

6. Are there any incentives/awards an agent will get when they achieve the sales targets?

Apart from commission earnings, there are many incentives and awards available.

It varies from project to project, the region, and achievement at overall company level.

At IQI, we recognize and award RENs who reach their full potential in their career and add value to their personal life.

The negotiator is offered exciting rewards/incentives to motivate them further.

These incentives come in several categories, including global travel destinations like London, Osaka, Seoul, Dubai etc., including grand luxury cars like BMWs.

Conclusion

Real estate is a very challenging profession where hard work, good attitude, having ethical standards are all important factors.

Money is never the main goal; it’s about helping people.

However, the limits are endless and the world will become your oyster if you wish so, as real estate is a favored subject by all.

So, let’s bring out your inner desire to be someone in life and add value to yourself, your family and friends.

We in IQI change lives, so call any of our 23 branches nationwide to be part of our mission to help you change your life for the better.

This article was written by K. Soma Sundram.

Soma is a Registered Estate Agent with 36 years of experience, a pioneer in Project Marketing in Malaysia and has trained over 200,000 real estate people. He specializes in sales skill training, and singlehandedly wrote the National Certification Course (NCC) module for real estate negotiators nationwide.

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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 #IChooseIQI.
Create your success and experience the many endless possibilities with IQI!
Grab the opportunity TODAY!

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!