What does a real estate consultant do?

You may wonder if the title of real estate consultant is meaningful and indicates something different from the same licensed real estate brokers with vested interests in the fate of a property. While it is true that anyone can call themselves a consultant, the term is not a nonsensical showcase. For those who are serious about their real estate consulting business, it represents a different model, a different approach to real estate practice.

The first and most important difference is objectivity. While a real estate broker is generally paid based on a result, in other words, they receive a commission, a real estate consultant is paid solely on his or her expertise. They have no interest in the outcome. Sellers are paid only to get one result: a sale. Real estate consultants are paid only for their expert advice and, by design, have no interest in achieving a particular result for a particular transaction. This gives them the ability to be more objective and inherently more trustworthy than a traditional real estate salesperson. Think about it: even the most honest salesperson will unconsciously try to drive you to a sale. After all, that’s where your pay comes from: from the sale! The consultant is paid in the same way as other professional advisors or service professionals such as CPA, with an advance regardless of the outcome.

Consulting can involve a variety of skills and areas of expertise. You can hire a consultant to provide legal advice, market research, or to locate potential properties to invest in, among other things. Since they are paid as much for their time if they inform you that there are no properties in an area worth investing in as if they inform you of dozens of viable properties, they have no interest in anything except giving you the best possible advice. . After all, your future business depends on word of mouth support from investors like you.

If you are looking for properties to invest in, a real estate consultant can tell you about developer closings and massive opportunities, joint ventures, joint ventures, and possibly even some very unique and profitable turnkey investment opportunities. The consultant is selling information and expertise and can therefore provide you with a layer of insulation between you and the people selling the properties. They can work out many of a property’s business details and prospects before you have to speak to a salesperson. Once you confront the salesperson, you can approach the negotiation fully armed with a series of appropriate information to avoid being misled and negotiate from a position of strength.

If, on the other hand, you are selling properties, especially if you have a lot of properties to sell, a real estate consultant can help you create a strategy for selling the units before engaging with the actual sellers, which can have many advantages. . For example, you can sell many properties in a relatively short time without creating the appearance of a wholesale sale if a real estate consultant distributes the properties among several different sellers.