What is Real Estate Consulting?:
How is This Good For the Consumer?:
This can save the buyer or seller significant money, as the true consultant does no work for free, such as free CMA's, free buyer showings, etc. This means that sellers can get lower listing commission costs and buyers can get credits/rebates if they've paid for services rendered up to closing.
How is This Good for the Real Estate Consultant?:
Real estate consulting can also open up new revenue streams, such as helping homeowners dispute property tax valuations, value their home for sale as a FSBO, or help a FSBO to go to closing once they have a buyer.
One other new source of business for real estate consultants is working with investors. These are savvy buyers and sellers who will embrace a method to save transaction costs and increase their return on investment.
How Does this Work for a Seller?:
After the up-front payment for services, the sellers can pay hourly or packaged prices for contract negotiation and closing services.
How Does it Work for Buyers?:
Using this approach, the consultant is paid for all their time/work and the buyer can save money. If paying as they go, the buyer would be credited/rebated the entire buyer side commission at closing, as they've already paid for their services.
The Logic of Real Estate Consulting:
We give away so much of our time and expertise in this industry as a marketing strategy. How many free CMA's have you done? How much gas and how many hours have you wasted showing buyers properties and never getting to a transaction?
We work on contingency without control. What does that mean? Though many lawyers will take a case on contingency with payment only if they win, they get to examine the case and decide based on its strength and probability of being won. We, on the other hand, do free visits and home valuations just for the privilege of competing for a listing with many other agents. Far too many of these are wasted effort. We'll also work with buyers who may not be as serious about making a purchase as they profess to us. At least the attorney knows her client wants to go to court and win.
It's just so logical to give your customer, buyer or seller, the ability to share our risk and save money accordingly. If a buyer or seller is paying by the hour for us to take them from a contract through closing, and the deal falls through on inspections, the real estate consultant still gets paid for the time to the point of termination. Logically, our client has some incentive to be forthright in their disclosures and to want the deal to close.
Then there's always the happy consultant who is getting paid for all their time and expertise, giving little or nothing away, and enjoying a lifestyle commensurate with their knowledge and abilities.