Buyer and Seller

Real Estate Consultants – Needed by both Buyer and Seller

There are so many facets to one who deals in real estate – a consultant, a realtor or an agent. Hence before going into details on how a consultant can help both a buyer and a seller of real estate in making a considered decision, it will be proper to look into the functioning of a real estate consultant.

A real estate consultant is a person who has set up practice to offer services to clients in one of the following ways –

  • Offering comprehensive packages of pre-determined transactions that finalises one complete real estate deal based on customer needs
  • Customised services that takes care of any one or more aspect of a deal on a piecemeal basis, with charges levied for that work only
  • Ancillary services that covers market valuations for insurance, assistance with property tax disputes and others.

This is good for both the seller and buyer of property since it offers great flexibility in choosing the required services and making payments accordingly. For example, if as an owner of a new business startup, you feel that you can handle the work of selecting the property to establish your business, you can do so and leave all contractual tasks to the consultant. You will save considerably on fees payable, money that you can profitably use to grow your business.

The job profile of a real estate consultant is thus not much different from that of a business consultant such as so far as charges are concerned. It is possible to hire a business consultant for specific work and pay accordingly. A new business can take the services a business consultant to draw up comprehensive marketing campaigns while an established company can take assistance for devising growth strategies.

How does a real estate consultant benefit a seller?

A seller has to first discuss with the consultant on the various service packages that are available and choose an option. Based on it, a specific upfront payment has to be paid as listing fees. This is a non-refundable compensation.

Listing tasks cover a wide range of services including –

  • Marketing of the property – A consultant will plan out all aspects to market the property and set the process in motion. Photos will be taken, virtual tours prepared and all this will be marketed extensively on various online social media platforms.
  • Fixing the price – While every seller will have an asking price for his/her property, it will be the real estate consultant who will make a thorough analysis and determine the ideal price based on prevailing demands and market conditions.
  • All other ancillary services related to listing set-up which is directly linked to a sale and is not paid for until the deal is closed.

For each of these services, the seller has the choice of paying by the hour or as a package both during every phase of contract negotiations or closing.

How does a real estate consultant benefit a buyer?

A buyer of real estate can be one who is acquiring a specific residential or commercial property or one who is a real estate investor with continuous transactions. In both cases a consultant can be of great help.

The work of a consultant includes –

  • Compensation for showing properties on an hourly basis. This is particularly helpful for large investors as they can take assistance only when needed as against permanent retainer fees.
  • Locating property in line with buyer requirements. The consultant will search for properties and will inform the buyer when a suitable one is found. This too will be billed on an hourly rate.
  • All transactional services related to acquiring the property will be taken up the consultant. This covers contractual tasks as well as liaison with property lawyers.

There is thus a lot of savings for the buyer too as payments are made for every stage of the process individually and buyers can themselves take up a few tasks such as looking for a suitable property.

These are the processes through which both the buyer and seller can benefit from the services of a consultant.