Guide to Running Your Own Business as a Real Estate Appraiser in Malaysia
Anything that comes with the term ‘real estate’ is associated with big money in Malaysia. The same goes for real estate appraisers, and you can make a fortune with the necessary skills. However, you need an extensive understanding of the market and extraordinary business plans. Besides that, being accredited by the authorities is a must. Today, we shred some light into it and discuss the things you need to do to become a real estate appraiser in Malaysia.
Real Estate Appraiser Job Description
A real estate appraiser assesses the value of a real estate. They don’t set the prices themselves- they only provide an estimate for the seller and the buyer. Due to this, real estate appraisers play an essential role during the trading of buildings or land. On the other hand, they can also work as property managers.
Real Estate Appraiser vs. Real Estate Valuer
Many, especially in Malaysia, ask this question. What is the difference between Real Estate Appraiser and Valuer? Aren’t they the same?
Well, yes, they are the same for the most part. They do the same work of analyzing the value of the house. However, in the case of an appraiser, they do an ‘informal’ evaluation, and they can only work in a specific region as their license lets them. Also, their job has a restriction on total capital value.
On the other hand, a valuer’s task is more complicated, as they mostly provide the final price of the real estate and they can operate in every part of Malaysia once they have a license. Also, the job has no capital restrictions.
In the context of Malaysia, we can say that the information provided by both appraiser and valuer is accurate. This is because everyone must complete a course and get a permit to do any one of these jobs. Thus, whatever you wish to be, you need to be adept.
How to Set Up a Real Estate Appraiser Business in Malaysia
There are two steps to it. First, you should register for yourself. After that, you will need to open a company.
How Can You Become a Registered Real Estate Appraiser in Malaysia?
You will need to apply for the registration number with the Board of Valuers, Appraisers, and Estate Agents Malaysia (BOVAEA). This will let you work as an appraiser. However, as we are talking about opening your own business, you will need to register as a real estate agent. Only then you can open an agency.
- First, you must pass two examinations (Part I and Part II) held by the Board of Valuers, Appraisers and Estate Agents. You can only apply for Part II of the test after passing the first one. Here are the requirements for an individual to sit either of these tests:
- The person must be a Malaysian citizen or a permanent resident.
- The candidate should at least have an MCE/SPM certificate with five passed subjects. Among them, three are credits.
- Both the part I and part II subjects consist of six subjects. They are subjective and test the understanding of the person in real estate.
- For more information about the structure of the course, you can visit BOVAEA’s official website.
- The second step is to practice for at least two years as a real estate agent. Only after that, you will gain the certifications.
How Can You Open This Kind of Company in Malaysia?
By the time you gain your license, we believe that you will spend two years learning about the Malaysian real estate market. See where the money is, make a business plan and also think of ways to market your company. Don’t forget to study the legality.
After you are prepared and have the necessary license, visit the Companies Commission of Malaysia (SSM). You register your company there. The process takes some bits of understanding and to help you with that, we have a separate article dedicated to how to register a business in Malaysia.
As you can see, the Malaysian government has taken strict measures to keep the real estate sector professional. So, you need to be an expert to get into this, but if you can, there’s a huge chance you can make something out of it. We hope this article helped you with what you wanted to know about a real estate appraiser in Malaysia. However, you can still contact us if you still have questions.