The Journey of Becoming a Real Estate Agent in Malaysia
Climbing the property ranks from REN, PEA to REA, one step at a time!
Most people think that the property business is all fame and glam, and most agents are leading a life of wealth and abundance. The reality, it is not always rosy and sunny, but often filled with conflicts and challenges. The trials and tribulations that pave the way towards the success of real estate professionals are what makes this industry a robust and resilient career choice for many Malaysians. Whether you crave that illusive dream home or enjoy financial independence that property has to offer, real estate is one of the best alternatives available for a rewarding life and livelihood. In this feature article, we discover the pathways to become an agent as well as explore key distinctions between REN, PEA and REA, and subsequent journeys taken through each successive levels to reach their dream goals!
Differences between REN, PEA & REA
Real Estate Negotiators (RENs) are basically individuals who work alongside licensed Real Estate Agents (REAs) but do not possess the full qualifications or accreditations. Real estate negotiators must be:
- Registered with the Board of Valuers, Appraisers, Estate Agents & Property Managers (BOVAEAP)
- Employed by a Real Estate firm
- Attend a two-day NCC course on Real Estate and be issued a certificate of attendance which serves as a ticket of employment at a real estate firm.
RENs cannot practice until:
- They have attended the NCC course
- Obtained their official REN ID tags (with REN numbers)
- Gained employment from a registered agency.
Probationary Estate Agents (PEAs) are agents-in-waiting or negotiators in a transition period before becoming a full-fledged registered agent.
On the other hand, Real Estate Agents (REAs) are individuals who:
- Attended two years of courses to attain a Diploma in Estate Agency
- Had 2 years of practical training under the supervision of a fully qualified REA
- Are moderated by BOVAEAP.
- Submitted a work log of their experience to the BOVAEAP for appraisal and approval.
A Real Estate Agent is a registered property agent with BOVAEAP, and operates their own real estate agency. Fun fact, our Managing Director Mr Wong Yau Long is perfect example of fully fledged qualified Real Estate Agent.
Qualifications of a Real Estate Agent
RENs will need to pass the Negotiator Certification Course (NCC), which takes roughly two days before BOVAEAP can recognize them. To apply for the Real Estate Negotiator (REN) license, you will need to attend a compulsory two-day course in Malaysia before registering as a Real Estate Negotiator (REN). As of 29 May 2014, BOVAEAP has decided to standardize the 2-day course module for the negotiator’s certification exercise. They are required to certify with the Board to conduct real estate transactions. This is part of the board’s effort to improve professionalism and to weed out illegal brokers. A career in real estate agency can be rewarding if one enjoys chatting up people, sales negotiating, relationship building, and working in an industry that offers great opportunities for learning and growth. With over 40,000 real estate agents nationwide, it is a competitive profession!
In order to become a Registered Estate Agent, you will first need to pass the Test of Professional Competence (TPC) which entitles you to your “E” number which allows you to be a practising agent. This examination consists of a professional interview as well as practical and written work to be completed after a period of one to two years depending on your progress or performance. After completing the written exam, you are eligible for the title of probationary estate agent. For those with diploma/degree, you are automatically registered as a PEA. You are then required to undertake 2 years of practical training under the supervision of a registered estate agency or real estate agent. But if you are in a hurry to make money, you can apply to be a REN first and start working whilst waiting for your PEA registration to be approved!
The journey of becoming a real estate agent truly begins with your practical training when you join a registered real estate agency. At the end of your practical training, you will need to prepare three things:
- a work diary (personal logbook)
- record of experience (500-word essay as a PEA)
- practical tasks (2 written assignments of up to 2,000 words each).
Once you are done with all three, it is time for submission. All that is left is your oral exam or Professional Interview.
Prerequisites to Becoming an Agent
First and foremost, you need to be a people-oriented person. This means you must be comfortable meeting people and communicate with people. The more prospects you have, the more sales you make. Being shy or timid is a definite drawback or disadvantage. In addition to being outspoken or orally-confident, you must be able to handle objections and rejections. Another important factor is to discover your target audience and demographics. Know your property area and community residents, and find out their needs or requirements. It takes discipline and diligence to make it in this profession as it can be rather daunting and overwhelming. To be successful in real estate, you need to have the 3P’s – passion, persistence, and perseverance.
Requirements as a Professional Agent
As an agent or a negotiator, it is quintessential to identify your area of specialty or property location. Always prepare an emergency fund or contingency income in case there are no deals during a dry month or your cash savings run out. The amount of money you make or the commissions you earned depend solely upon the efforts you expend. Property negotiations is not just about closing deals but constantly and consistently hustling in generating leads and creating sales. It is also important to invest in advertising and marketing to elevate your professional brand by leveraging on traditional print & social media.
Why choose to be a Property Agent?
Being a property agent or real estate negotiator entitles to special perks and privileges. One of which is time flexibility – you get to work whenever you want without the constraints of a 9-to-5 office job. You are literally your own boss – you decide how your business grows and develops. However, you also perform all the hard work such as client listings, personal branding, and marketing presentations. Choose the ideal platform to kickstart your property career. Find the right fit with the perfect agency to take your REN licence exam. Build your self-confidence and inner passion for everything property. Equip yourself with professional skills and comprehensive training to master real estate and seek financial freedom. What more can you ask for in life?
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