What is a Property Agent and How to Choose a Reliable One?

Being a property agent requires the skill of negotiation. Essentially, a property agent's job is to assist clients in buying, selling, or renting property. Let's take a look at the definition of how to choose a property agent to speed up the process of property sales.

What is a Property Agent?
A property agent acts as an intermediary between investors, sellers, and buyers. They facilitate the buying, selling, and renting of properties.

Legal Basis of Property Agents
Property agents in Indonesia are regulated by the Decree of the Minister of Trade No. 33/M-DAG/PER/8/2008. This regulation requires property agents to obtain a Business License (SIU-P4) and employ at least two qualified personnel.

Advantage of Using a Property Agent Service
The advantage of using a realtor service is that the selling price of the property can be adjusted to the market price. It can be difficult to sell a property if the price set by the owner is either too high or too low, resulting in a loss. An agent minimizes this by conducting a CMA or competitive market analysis to ensure the listing is feasible.

CMA stands for Comparative Market Analysis. It is a process of comparing the prices of other properties similar to yours that are located in your area. The aim of CMA is to determine the market value of your property. This is done by comparing your property to 2-5 third-party properties that are similar to yours and are also offered to buyers. The comparison ensures that the price of your property is not overstated or underestimated and is in accordance with the market value.

Disadvantage of Using a Property Agent Service
Once you benefit from the use of this service, there is a need to pay a commission fee to the property agent. The commission rate is typically between 2-5% for sale and purchase contracts and 5-8% for rental contracts. This can sometimes be a financial burden, especially when cash flow is tight. However, using a realtor service has also saved you a significant amount of time.

5 Types of Property Agents

1. Experienced Agent
   An experienced agent is a property agent who has been in the business for decades and has extensive knowledge of the industry. They are sought after for their wise advice and expertise. However, their services may be difficult to acquire in urgent situations and their commission fees tend to be high, ranging from 5-6%.
2. The ‘Shark’ Agent
   A ‘Shark’ Agent is an agent with a strong attitude. Agents with this kind of attitude will never hesitate to offer honest advice, making it difficult for some clients to work with them. However, this type of agent is perfect for competitive markets requiring strong negotiation skills to gain an edge over competitors.
3. Starter Agent
   As the name suggests, this type of real estate company generally has limited experience in the property market and may have only been established for 1-2 years. These new agents often bring fresh energy and enthusiasm to their work. However, they may not have faced many clients or earned as many commissions as experienced agents.
4. Tech-Savy Agent
   A tech-savvy agent, who is usually from the millennial generation, is highly skilled in using social media and the latest technology to help sellers and buyers navigate the real estate market. By using this service, one can quickly find and sell properties, which is a significant advantage.
5. The ‘Mediator’ Agent
   This type of agent is highly skilled in handling a wide variety of potential conflicts that occur between sellers and buyers. This type of agent is perfect for those of you who have shortcomings in the property such as poor credit scores or home conditions that need to be repaired to get a purchase agreement.

Tips for Choosing a Property Agent

When it comes to buying or selling property, several documents need to be taken care of, such as AJB (Akad Jual Beli), HGB (Hak Guna Bangunan), BPHTB (Bea Perolehan Hak Atas Tanah dan Bangunan), SHM (Sertifikat Hak Milik) and PBB (Pajak Bumi dan Bangunan). If the AJB is not executed, the owner must provide proof of a Sale and Purchase Bond Agreement (PPJB) and payment evidence from the developer, among other things. It's important to ensure that the property agent you choose understands these requirements. Additionally, you should check the license and legality of the property agent's business, as well as reviews from past clients.

As a property owner, you'll naturally want your property to sell quickly. For this reason, using a property service can be a good option, as property agents often have a list of potential buyers and can advertise your property both online and offline.