Let’s start with the idea of commission.
Commission is defined as a sum of money paid to a salesperson for every sale that he or she makes. If a salesperson is paid on commission, the amount they receive depends on the amount they sell.
While the above notion of commission is straightforward, when selling something as valuable as your property, it’s important to ask more questions. Why is commission the appropriate payment method for your real estate agent? How much commission is normal for your property value? How will I know what is considered fair commission? These are all valid questions and it’s a good idea to consider them before you begin the process of selling your property.
Commission is the standard based sales method used historically in real estate. Selling a property is not like any other sale you will ever make, both in monetary value and in the nature of the product – you are essentially selling someone brand new roots to lay the foundations of the next chapter in their life. It takes a strong skillet to negotiate the best possible price on your property and this skill set is developed through a real estate agent’s experience, sound knowledge of the market and passion for the industry.
An agent’s commission is usually 3% of your overall property sale price and of course, while commission is an important factor when considering your choice of agent, it is certainly not the only factor.
Commission rates are merely a small piece of the bigger real estate puzzle. A few other important factors to consider when choosing an agent are things like the agent’s experience, success rate, negotiation skills and their strategic approach to marketing in the digital age. It’s a good idea to consider these factors on top of commission rates.
Real Estate Agent Fees
MALAYSIA ESTATE AGENCY FEES
1.Sale or Purchase
Land and Buldings
A maximum of 3% of the sale price of the property
Chattels including Plant and Machinery - 10% of the proceeds
The above scale applies to any sale or purchase by way of private treaty, tender or any other mode of disposal or acquisition.
For Sales and Marketing of projects by registered estate agents the fees is to be agreed between the estate agent and the client.
The above scale of fees shall not apply to the sale of foreign properties in Malaysia or sales of Malaysian properties in foreign countries.
Minimum fee: As above, subject to a minimum fee of 1 month rental.
For tenancies less than one year, the fee may be calculated on a pro rata basis. The above scale shall not apply to serviced offices/apartments or any other premises of similar nature.
3.Rent Reviews - 50 % of the fees chargeable under lettings
In addition to the fees stated in items 1 to 3, claims may be made for:
The cost of printing, plans, copies of documents, lithography, travelling (only where the distance between the estate agent's office and the property is more than 40 km) and other expenses actually incurred;
The cost of media advertisements, signboards, brochures and other promotional material.
Note : The above additional claims may not be incurred by the registered estate agent without prior concurrence of the client.