When it comes to buying, selling, renting or leasing out a property, some would think of going it alone or appoint someone who is not registered as a professional real estate agent in order to save some cost from the transaction.

By doing this, they are exactly falling into one of the most commons pitfalls that could lead to huge losses with deposit or   upfront down payment taken away by the unregistered broker who turn out a fraud later.

In fact, the chances of running into an unregistered agent and being scammed by them are very high in Malaysia.

According to the governing body that regulates real estate agents in the country - the Board of Valuers, Appraisers, Estate Agents and Property Managers (BOVAEP), the number of illegal agents is estimated at above 100,000 with more than 50 real estate frauds are being reported every month as a result of the rampant situation, New Straits Times reported in March 2020.

Meanwhile, the number of registered estate agents is only a third of the number of illegal brokers. Based on figures from the Malaysian Institute of Estate Agents (MIEA) in April 2020, there are about 25,000 real estate negotiators, 2,500 real estate agents and 2,000 probationary estate agents in the country.

However, the expertise, professionalism and level of service and responsibility offer by registered estate agents is unrivalled by their unregistered peers.

Here is what a registered estate agent can offer to his/her clients:

1. Professional and reliable – Registered agents in Malaysia are required to go through a stringent training and practicing process in order to attain the qualification. Hence, they are equipped with the necessary knowledge and experience and thus making them more professional and reliable.

2. A wide range of professional services – Unlike illegal brokers, registered agents work as a professional organisation whereby different market segments and client requests, which ranges from residential, commercial, industrial, leasing and auction will be handle by the designated team. This ensures clients can get the best advices and services with a high chance of getting the best deal.

3. A hassle-free process with win-win outcome – Thanks to the extensive network of connections and listings, registered agents are able to address the concerns and requests of both parties (buyer/seller or landlord/tenant) efficiently and close a deal that comes to a win-win for both sides.

4. Transparent and empowering clients – Unlike illegal brokers that often try to keep their clients in the dark about the negotiations and charges, registered agents are transparent with their commission, which is being regulated by BOVAEP and not allowed to simply changes the rates. Moreover, a good registered agent will empower their clients with in-depth market knowledge and insights to help them make better decisions.

All in all, engaging a registered real estate agent can make sure you get the best deal, avoid falling into pitfalls that could lead you to huge losses and most importantly, ensuring your hard-earned money is spend wisely for the transaction.

Hence, it is advised that not to be penny-wise and pound-foolish and end up in a situation where more money is lost to illegal brokers and it can take years or even forever to retrieve your fund through the legal channels.

Get in touch with PropNex Malaysia if you are looking for a registered agency firm that matches all the features above.