Friday, July 13, 2018

REA license is no more "VALUABLE"

People say “Negotiator” same la with “Agent”. There is no financial differences with both making good money! Why study so hard to pass the Estate Agent Examination?

A friend asked me:

“I heard from one of my negotiator friend.. he said the rea license not as "valuable" as we think.. how true is it actually?”

This question is very hard to answer. It is individual expectation of what is becoming a real estate person.

It is like “There are plentiful doctors, there is no more money making to become a doctor?”

Two parts of this question I must emphasize:
  1. The profession of Estate Agency Practice. 
  2. The viability of the trade/profession. 

Although, they do NOT really mean one thing, they are linked. The balancing act is the part we need to discuss.

A Negotiator can actually practise both parts. YOU DO NOT NEED TO BE A REA! Why?

Because “Negotiators” are employed (or engaged) to assist the REA in estate agency practice - S.22C (2A) of VAEP Act, 1981.

That means if you imagine that the REA is invisible, the Negotiator basically runs the whole business. In many agencies, the Senior Negotiators are given their own sales team to run the business. You can have a Negotiator led Sales Team bringing business more than an entire agency in some successful modals. In fact, in today’s social media, their Senior Negotiators are not even running the show - it is the celebrity “Consultants” who are running the business. These people are not even Negotiators! Why? Because selling without boundaries is the way to bring business. And, being a REA or Negotiator, you cannot simply say anything you want! The Board has a set of ethics and conduct to follow.

So, the profession of estate agency practice is tainted with many “consultants”, and yet nobody really can do anything about it. And, why is this so? It is because the real estate industry is layered with a cream of greed! People are motivated by wealth and prestige. People swamp around celebrity “consultants” mimicking their so called “successes” in the quest for wealth. “Dato’ so and so, the Guru of Property Investing”.

The reason why some of these “XYZ Consultancy” company or “Guru” are tagged with Negotiator or REA is because they are more wealth waiting for them! If a client wants formal dealings, they will satisfy them to go to an agency firm. If the client does NOT need this formal dealings, they just sort out the deals direct with vendor or developer. Developer or vendor do NOT mind going through them because they sell at good price and fast! Selling with “this cannot say, that cannot say” will have difficulty in getting a buyer, right???

After all, the client wants good product and they have convinced them of the goodness in them. As for getting the clients into complication, hello!? Didn’t I say it is “potential future return”? I DIDN’T promise “anything”!

If a client were to lodge a complaint, they will push the agency firm in front of them and say that the dealing was legitimate as it was handled by the Negotiator or REA. They push away their “Consultancy” works by saying “we just give advice” nothing else.

Therefore, whether a doctor is a good or bad doctor, taking a medical leave really does NOT matter who is a good or bad doctor. Estate Agency Practice is like that!

Your employer would not normally question the legitimacy of your medical leave as long as it is certified by a medical doctor registered with the Malaysian Medical Council. So, similarly your real estate client would normally not mind if it is a good or bad REA firm, as long as it is a good property or a good buy.

Only when he does NOT get a good deal, he will question this firm. BUT, it is usually too late by then. The consultant will say “Well, in any investment, there is risk! We are sorry that it happened. We did NOT want that to happen as much as you do!” and probably end with a “We are sorry, but do come back for a better deal!”

S.22C (2A) Valuers, Appraisers and Estate Agents (Amendment) Act, 2017.

No comments:

Search This Blog

How do you find my articles?