The Concept of Real Estate Consulting
The “Professional Fee-for-Service” concept
The basic premise of Real Estate Consulting is that a Realtor® is compensated for their time and experience on a “Professional Fee-for-Services” basis just like other financial advisors. Most consumers willingly paid other advisors, such as attorneys, CPAs, appraisers or investment advisors, on a “Professional Fee-for-Service” basis.
But Why? Today, the services of any professional advisor can easily be found on the internet.
· Need a trust or will, simply fill out a form on the internet and print it out.
· Need to file your taxes, simply purchase software or go on-line.
· How about planning for retirement, there are a number of sites that will provide you information on the topic and tell you what you need to do.
· Want to find out the current value of your home, why hire an appraiser when you can access programs on the internet?
The reason is simple; consumers want to know that someone with the experience and training is servicing their needs and providing them with information that is accurate. We are transparent about our fees. MORE>
Misconceptions About Real Estate Consulting
At first glance, it seems as if real estate consulting is at odds with the commission based model because of the three primary misconceptions about Real Estate Consulting which include:
- Real estate consultants are discount or cut rate agents who simply charge a flat fee to list a home on the MLS.
- Real estate consultants are Realtors promoting a title to market themselves as something different while continuing to offer services in the same manner as other real estate agents.
- Real estate consultants charge a fee for the same services that consumers can get for “free” from other real estate agents.
Why Use a Consultant?
The truth of the matter is that real estate consulting actually complements the traditional Professional Service Fee based system by unbundling real estate services.
At the heart of Real Estate Consulting is having the tools and training to approach each client’s needs from an objective consulting position rather than a sales one in providing the consumer quality transparent choices both in the services that they can receive as well as how those services can be paid for.
In actuality, consumers reaching out to a real estate consultant want an objective evaluation of why a certain event occurred, such as why a home did not sell. Or, they may want information on a real estate question that does not involve buying or selling real estate; for example, how much remodeling could be done without overbuilding for the neighborhood or what is a home’s current market value when contesting a property tax increase.
Consulting Designations
Any Real Estate Agent licensed in Kentucky can currently advertise themselves as a “Consultant” or “Advisor” and charge a fee for their services.
However, some Real Estate Agents have undergone a course of study to understand the concept of applying consulting to meet the needs of the consumer. Two organizations offering such training are the ACRE Council LLC which offers the Accredited Consultant in Real Estate® (ACRE®) designation and the second being the International Association of Real Estate Consultants which offers the Consumer-Certified Real Estate Consultant® (C-CREC®) designation.
Working with a Qualified Real Estate Consultant
While not currently recognized by the National Association of Realtors, Realtors who have earned either the ACRE® or C-CREC® designation have undergone training in approaching a real estate transaction on a consulting basis rather than simply a sales basis and have made a commitment to provide unbundled services in the consulting partnership with the consumer. Another benefit of dealing with a Realtor® who has earned either of these designations is that they are able to continue to improve their skills and knowledge through networking with other Consultants and attending continuing education workshops.
Unique Consulting Background
I have been a practicing Financial Consultant for over 25 years and have undergone extensive training in the areas of estate and financial planning, taxation, probate and senior issues. I am also both an ACRE and C-CREC and a member of the International Association of Real Estate Consultants. As a Realtor, I offer my services on the traditional “Professional Fee” basis, but also realize that not all consumers require all the services provided by a Professional Realtor so as a Consultant I offer unbundled services that consumers can purchase as needed.