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The Professional Lie: Why Agents Ignore the “Perfect Match” for the “Higher Commission”

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In short

Agents may choose higher commission over the best client match when incentives are misaligned. Professionalism requires commission design that does not punish honest advice.

ListingMine Academy | Agent Ethics, Incentives & Structural Truth

Every agency meeting begins the same way. The Principal stands in front and declares:

“We must be professional.”

“We put the client first.”

“We serve with integrity.”

Everyone nods.

Everyone agrees.

But the moment agents step onto the field, the truth emerges:

The property that pays more gets more attention.

The property that pays peanuts gets ignored.

Is this hypocrisy?

Greed?

Fake professionalism?

No. It is simply a misunderstanding of how professionalism works in a commission-driven industry.

1. The Golden Rule: Whoever Pays Is the Boss

Most people confuse two different roles:

In Malaysia:

So agents logically protect the party that pays them.

This is not bad ethics.

This is correct professionalism.

2. The Scenario Everyone Pretends Doesn’t Exist

A buyer is choosing between two condos:

Option A
Perfect match, ideal price, great for the buyer
Commission: 2% (RM10,000)

Option B
Less ideal, over budget, weaker view
Commission: 5% (RM25,000)

Most agents will push Option B.

Not because they are lying.

Not because they hate the buyer.

But because:

If the agent prioritised the buyer (RM0) over the developer (RM25,000), the agent would actually be betraying the paying client.

3. The Buyer’s Delusion: “This Agent Works for Me”

Buyers assume:

“This agent should help me find the best deal.”

No — not unless you pay them.

It’s like walking into a Mercedes showroom and asking the salesman:

“Should I buy a BMW instead?”

His loyalty belongs to Mercedes. Because Mercedes pays him.

Real estate is no different.

Unless the buyer hires the agent and pays them, the agent is not a consultant — the agent is a salesperson for the inventory.

4. The “Peanut Commission” Problem

Why do agents ignore certain properties completely?

Because the owner is offering a non-competitive commission.

Owner A: RM3,000

Owner B: RM15,000

Agents have limited time. Their time flows toward the strongest incentive, not the “most suitable property.”

This is not unprofessional. This is economics. If an owner wants attention, momentum, and effort — they must compete in the labor market for agent focus.

If they pay peanuts… they get monkeys, or no one at all.

5. The Only Real Solution: If Buyers Want Loyalty, They Must Buy It

Buyers want two things:

Both are impossible at the same time. You cannot demand neutrality while paying RM0. A buyer can only become the true Client by signing a:

Buyer Representation Agreement

and paying a fee (e.g., 2%). Only then can they instruct the agent:

Until that happens, buyers will always receive seller-biased service, because the seller is the one paying for it.

Conclusion: Don’t Blame the Agent. Blame the Structure.

Agents are not fake.

Agents are not unprofessional.

Agents are following the legal and economic structure of the industry.

Professionalism means:

The only way to change agent behaviour is to change who pays, not to lecture agents about “integrity.”

Professionalism follows the contract. If you’re not paying the bill, you’re not the boss.

ListingMine Academy

Marvin Foong, Founder of ListingMine
About the Author

Marvin Foong

Founder of ListingMine and author of Agent for Life. Building ERP for Malaysian real estate agencies since 2008 — and writing to reshape how agencies grow.

More about Marvin Foong →

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