Malaysia Institute OF Estate Agents - Aspirations And Goals

Changing the face of real estate

The business of real estate agency brings a host of images to mind, most of them negative. For what should be one of the most momentous occasions in our lives, house buying has for some, became a nightmarish experience due to a few unprofessional and unscrupulous property agents.

One woman, Khatijah Abdullah, the new Malaysian Institute of Estate Agents president, is determined to rid the real estate industry of this perception.

“I feel that the property business is more than just selling a house. It is a service industry. We need to cater to the needs of the client. If they are satisfied with our professional behaviour, they will do business with us,” she reasoned.

MIEA, formerly known as the Malaysian Association of Real Estate Agents (Marea), is the body representing all registered estate agents in the country. Marea was formed in 1974 but officially registered on April 4, 1977 with the Registrar of Societies. The name was then changed to MIEA on May 3, 1989 to reflect a more professional organisation that had evolved through the years.

“All the committee members have to work together for the good of the Institute,” said Khatijah who foresees many hurdles in cleaning up the real estate industry. However, she is determined to use her tenure as president to implement measures to boost membership numbers and enhance professional conduct.

Membership drive
Top priority in her agenda is to increase the number of MIEA members. Khatijah’s solution to this is two-prong.

“I would like to have the majority, if not all registered estate agents in MIEA’s fold. This can be achieved if all registered agents in Malaysia see the importance of the need to be in MIEA,” she said.

After all, membership does have its privileges. MIEA offers group discounts for trade advertisements and signboards, and other property-related merchandise that would enjoy economies of scale when purchased in bulk. In addition to that, Khatijah reckons that “your voice will be heard if you join a group”.

Of the 1,700 registered members in the country, only 583 are onboard. Many left the MIEA fold in the early years because of a lack of communication and interesting activities. As such, Khatijah intends to attract and sustain interest of both existing and new members by introducing more appealing networking activities.

“There are plans to hold business talks. Agents will benefit from the rapport with fellow members as they can close co-agency transactions and share online data or listings,” she explained.

Khatijah is, in fact, spearheading MIEA’s move towards sharing online data and listing.

Professional persona
Khatijah is very keen on the general public to use the services of registered agents. Towards this end, she plans to unite all registered estate agents with a professional code of ethics.

“We need to get them to understand the main objectives of MIEA. They must not join because of self-interest but work towards improving the image of the industry as a whole,” she explained.

Presently, all practising estate agents are required to be approved and registered with the Board of Valuers, Appraisers and Estate Agents in accordance with the Valuers, Appraisers and Estate Agents Act, 1981. But in order to strengthen the professional standards of the industry, she believes education and certification are vital.

“There are many negotiators who are working for unregistered agencies. We want to train these people. We want to convert the illegal ones. We want them to qualify and be registered estate agents,” she explained.

As she feels that illegal agents spoil the image of the profession, she is on a mission to register them so that they will be accountable for their actions. According to her, a successful agent must have a high level of integrity, honesty and diplomacy coupled with a genuine need to help people to sell, rent or buy properties.

Khatijah personally feels that these illegal agents - estimated at about 17,000 - must be given the benefit of the doubt first.

“We should encourage them to join registered agencies. Then, licensed agents can guide them to become responsible negotiators. We must also encourage the agencies to send them to MIEA for guidance and self-development courses to manage their time and projects in a more professional way.

“The Board registers the graduates as professional agents. But for the Board to do this, MIEA must take the first step in helping them gain professional recognition and elevate the public’s perception of the profession as a whole,” Khatijah explained.

Enforcing ethics
One of the main objectives of MIEA is to safeguard and protect the interests of the general public. As such, it is crucial the institute maintain a high level of professional standards among its members, ensuring they adhere to the code of ethics and conduct spelled out in their official certificates.

“In real estate, we have been long aware of our ethical obligations. But the question of what is right or wrong is becoming more complex.

“It is hoped that in converting members to be more professional, a greater majority will strive to be responsible, forthright, loyal, honest and fair in their dealings. Estate agents must keep their promises and show concern regarding the rights and feelings of others,” Khatijah said.

The issue of ethics is especially vital in eradicating unregistered agents that give the property industry an unsavoury reputation.

“I do not want the public to turn to such illegals for investment advice. They might be cheaper, but usually disappear if clients encounter post-sales loopholes and problems.”

Khatijah is all for photographs of property agents to be printed on name cards. This will, in some way, safeguard buyers from dealing with cheats.

“Sometimes, unscrupulous agents blank out the office addresses and numbers and only print their handphone numbers. And the unsuspecting public might leave a deposit with them. So the public must be vigilant and check whether they are registered,” she advised.

Khatijah believes that although MIEA will not be able to completely eradicate or convert all illegals agents, the public can minimise their reliance on them. Towards this end, she feels that the public must be more proactive in their dealings with agents.

“When you meet these agents, you must ask for their registered ID numbers if they tell you they are licensed property managers or registered real estate agents. You must attempt to call their office to find out whether they work there.”

Future direction
One of the biggest challenges she sees in her current position as MIEA head is to champion for commissions to be increased to three per cent from the current 2.75 per cent.

“We feel the existing fee does not reflect the amount of work we put in to run a sophisticated and modern office. We need the increased fees to help us provide a better level of service. The re-introduction of the three per cent fee will aid in conducting training development courses,” Khatijah explained.

Another battleground is the poster war being fought with “for sale/rent” signages. Khatijah plans to work with the authorities to eradicate the ugly mess caused by irresponsible agents.

“I would really like to clean up the unsightly ‘for sale’ or ‘to let’ signs that agents stick all over the premises of some property. Sometimes, there are so many signs that even after a property has been taken, the signs are still left there for the new owners to spend time and energy to peel off. I would like to see a pleasant facade with agents respecting each other’s territory. Some agents even tear competitors’ posters and put up their own instead,” she lamented.

Khatijah feels that home sellers need only just engage a reputable estate agent to transact their deals.

“You just need to appoint an exclusive agent to do all the legwork and undertake the paper chase for you. The agent will be motivated to deliver promptly and professionally as he stands to gain most from an exclusive property transaction. The clients also benefit from assured post-sale follow-ups and accountability,” she explained.

Ultimately, Khatijah feels that the public will have more confidence in dealing with registered estate agents if professional standards are enhanced. She wants estate agents to receive the same amount of respect, credibility and job satisfaction as any other highly regarded profession in the country.