Working as an Auction Agent: Rewarding, Risky, and Rarely Easy
Every month, hundreds of properties go under the hammer across Malaysia — residential, commercial, and industrial alike. Yet despite the growing number of auction listings, the number of actual buyers remains surprisingly small.
This imbalance has created an opportunity for property agents: banks now offer commissions to agents who can bring buyers to clear their Non-Performing Loan (NPL) stock. At first glance, it looks like a new income stream — but in reality, working as an auction agent is a tough and tiring business.
Why Banks Need Agents for Auction Properties
When borrowers default on loans, their properties eventually get repossessed and auctioned. Banks, already burdened with thousands of NPL cases, struggle to move these assets quickly.
To attract buyers, banks now collaborate with registered property agents — paying them a commission for successfully bringing bidders. The logic is simple:
“If subsale agents can bring qualified buyers, why not help banks clear their backlog too?”
Why Subsale Agents Should Pay Attention
For experienced subsale agents, some auction properties represent real value buys for their clients — especially investors.
Many auction units are priced below market value (BMV).
The margin can make up for renovation costs or legal complications.
For cash-rich buyers, auctions are an opportunity to secure high-return properties with minimal competition.
That’s why some agents integrate auction listings into their buyer-sourcing strategy, positioning themselves as “value hunters” in a competitive market.
But It’s Not Easy Money
1. Limited Access and VisibilityAgents often can’t enter or inspect the property before auction.
The current occupant (often the former owner or tenant) may refuse entry.
That means the agent — and the buyer — must make assumptions based on photos, legal descriptions, or old listings.
A responsible agent must help the buyer:
Verify title and encumbrances.
Check if the property has caveats, arrears, or pending legal action.
Estimate renovation or reinstatement costs.
All of this takes hours of unpaid work — and there’s no guarantee the buyer will even win the bid.
Even after all that effort, your buyer may be outbid on auction day. You might spend weeks preparing documents, explaining risks, and attending the auction — only to walk away empty-handed.
That’s why many agents describe auction work as “high effort, zero certainty.”
The Commission Comes with Caveats
While banks do pay commissions, the structure isn’t always straightforward:
Payouts often happen only after the transaction is fully settled.
Some banks have strict documentation before releasing fees.
And in some cases, you may not even be the recognized introducer if multiple agents claimed the same buyer.
In short, you need to treat the auction agency like a professional service, not a quick transaction.
Should You Do It?
Yes — if you’re strategic. Auction listings can be a smart addition to your buyer service, especially for investors looking for undervalued opportunities.
But it should be approached with realistic expectations:
It’s not passive income.
It’s not easy to scale.
It’s not for agents who expect quick results.
For those who specialize, however, the niche can become a powerful reputation builder — positioning you as a problem solver who goes beyond standard listings.
Conclusion: High Workload, Higher Integrity
Working as an auction agent tests patience, professionalism, and persistence.
You’re not just selling a home — you’re navigating law, finance, and emotion.
The few agents who thrive in this space do so because they treat every case like a legal puzzle, not a marketing game.
In the end:
Auction agency isn’t about chasing easy money. It’s about mastering the art of difficult sales — and earning respect in a segment most agents avoid.
