Chances are you’ll be wondering if the title of real estate consultant is a significant one, and if it signifies anything totally different from the same old licensed real estate brokers with a vested curiosity in the fate of a property. While it is true that anyone can call himself or herself a consultant, the term shouldn’t be that meansless window dressing. For many who take their real estate consulting enterprise seriously, it represents a special model, a different approach to real estate practice.
The primary and most necessary difference is objectivity. Whereas a real estate broker typically is paid contingent on an consequence-in other words, they obtain a commission-a real estate consultant is paid solely for his or her expertise. They haven’t any stake in the outcome. Salespeople are paid only for getting a end result-a sale. Real estate consultants are paid for their knowledgeable advice only, and by design have no stake in achieving a particular final result to a particular transaction. This offers them the capacity to be more objective and inherently more trustworthy than a traditional real estate salesperson. Think about it-even the most trustworthy salesindividual will unconsciously try to steer you toward a sale. After all, that is the place their pay comes from-from selling! The consultant is paid the way other professional advisors or service professionals like CPAs are, with a retainer regardless of outcome.
Consulting can involve quite a lot of skills and areas of expertise. You’ll be able to hire a consultant for authorized advice, market research, or to locate potential properties to invest in, among different things. Since they’re paid as much for his or her time if they advise you that there aren’t any properties in an area price investing in as if they advise you of dozens of viable properties, they haven’t any stake in anything besides supplying you with one of the best advice possible. After all, their future enterprise is determined by word-of-mouth endorsements from traders like you.
If you’re looking for properties to put money into, a real estate consultant can tip you off to developer closeouts and bulk opportunities, equity partnerships, joint ventures, and possibly even some very distinctive and profitable turnkey investment opportunities. The consultant is selling information and experience, and therefore can provide you with a layer of insulation between you and the folks selling the properties. They’ll work out a number of the details and business prospects of a property earlier than you must talk to a salesperson. When you face the salesindividual, you may approach the negotiation fully armed with an array of appropriate information, and thus avoid being bamboozled and negotiate from a position of strength.
If, however, you might be selling properties, especially when you have plenty of properties to sell, a real estate consultant may also help you create a strategy to sell the units earlier than you become involved with actual salespeople, which can have many advantages. For example, you can sell a lot of properties in a comparatively quick time without creating the looks of a bulk sale by having a real estate consultant distribute the properties amongst a number of completely different sellers.