My usual answer is to hire an attorney.

Bruce Lunsford
http://www.ableinspector.com Naples, Fort Myers Home Inspection

I was thinking of offering it for both buyers and sellers. I’m trying to keep everything even, per my post on Redfin today Here’s to the black dot of equilibria!!

There is no prohibition in WA regarding the use of the title “real estate consultant”. In the end, all that matters is that the person is licensed. You could easily create a model under which you offered a non-agency “consultancy” for people who wanted to do FSBO and a higher fee agency relationship for those that wanted more services.

-Russ

We recently hired an agent who used “consultant” on her business card from the time she was new in the business. I talked her out of using it, but wondered if WA had any rules on that title. I would think not, given her previously company that suggested she use “real estate consultant” was an established firm with many agents.

I’ve always wanted to offer a flat fee “real estate consultant” service to help people who want to buy or sell primarily “on their own”.

Excellent post and advice. I totally agree with you regarding disclosure upfront. In fact, we suggest to our sellers that they should order an appraisal, home inspection and termite… upfront. Many real estate deals fall out because of one of the above, this can all be avoided if completed upfront. Also shows that seller is serious at selling and it gives buyers confidence that the property is priced correctly, the condition is good, and that termite is / is not an issue. Work repairs can be negotiated upfront or better yet, the owner completes them upon receipt of the initial report.

As for REALTORS… it’s important that you not assume that you are entitled to a commission just because you have a real estate license. You must be able to convey the value you bring to a transaction. Most FSBO’s sell on their own because most agents have not conveyed their value. Your value is not the MLS because that can be purchase for a flat-fee. Your value is not in the bus bench marketing. Your value is not in the pre-printed contracts that protect the agent first, consumer second. Your value is not in claming that you will get a higher sales price.

Your value is assisting buyers and sellers avoid possible issues before they arise which helps insure a smooth transaction during a difficult time. It’s to navigate the “potholed” road to closing trying to avoid a flat tire. Some agents like Ardell, can convey that very easily… others not so much.

Also keep in mind that home owners try FSBO because they personally know of many agents. They understand that many of the ones they know… don’t know nothing. Especially in social circumstances where many agents will talk about war stories or how quickly they sold a home, didn’t do a thing, and made a bundle. This gets back to consumers and therefore they attempt to sell FSBO.

You must be a consultant not a service provider. Services can be automated… personalized consulting cannot.

This comment came up three times like a spammer comment. Specific info like you are requesting would be an email to: Ardell@SoundRealty.biz And I can only answer that very specific question, if you do not have an agent representing you at present, for rules and ethics reasons.

I will delete one of the three identical comments, (won’t delete Galen’s) and you can email me direct if you want a specific answer to that specific question. We need to know that you do not have an agent already, as the “ethics” rules state we cannot give advice to someone who is represented by another agent. Our advice may conflict with theirs, for instance, and that’s against the rules. Consequently, we can’t get too specific in generic comment style.

We do the best we can though, to give a lot of info, but your questions appear to be about a real, given house, at 2,230 square feet…doesn’t look “generic”.  A generic house would be say 2,200 to 2,400 sf.  2,230 sounds like an ACTUAL house, and we can’t “badmouth” IT specifically.  Licensees can only do that if you are their client, so “your” agent is the only one who can show a specific home’s weak points, under the license and mls “rules”.

The funny thing is many agents send out thousands of post cards or advertise “FREE CMA – Want to Know What Your House is WORTH? Call ME – NO OBLIGATION!” I have never done that, but we all know many agents who do.

Then when the owner takes them on their word, calls them for the “FREE CMA” to fine tune their price only, whether they are For Sale By Owners or listing with another agent…they get MAD, LOL. I think that is a riot!

You said it was FREE and then complain that you worked for nothing. I’m not saying agents should charge for that…not at all. I’m just saying if you sent out 1,000 postcards with that wording, don’t complain when people take you up on your offer.

Would you “pick that bone” with me for a minute? Let’s say someone comes to you and says they saw a For Sale By Owner at an Open House on Sunday. Price is $750,000. These are people you know who haven’t been looking for a house, just kind a stumbled on this one and decided to buy it.

They ask you for some assistance in proceeding as in write it up and help with negotiating the contract and inspection. That’s all.

Any reason that your fee for that should be some kind of pre-ordained percentage? I just did one of these, (though I knew the seller and not the buyer) on a house that was not yet for sale, for a $3,000 flat fee on a house that was $1.1 million. Turned out to be two offers and I had a little more to do than I expected, but not much except to GET the house for the first offeror.

You seem to think I should have charged $30,000 to $40,000 for that service. Can you justify that for me? Is there really a one size fits all fee/% for any price range and any service needed?

I love this post and because of your open mindedness and putting your clients first you are exaclty the type of real estate agent we refer our sellers to when they are not in a place to sell by owner. All the sellers on our site are FSBO’s and you wouldn’t believe the stories we hear about what agents say to convince them to list. Everything from “somebody will be ripped off in the process” to “you’re basically just taking food off my kids’ table”! We know not all agents are like this, but it is refreshing to see there are agents who really are looking out for their clients.

The idea about having contracts available is great. We usually have the seller have them sitting out along with any other paperwork so buyers see they are prepared and confident.

About Rick’s comment. I do believe there are true FSBO’s out there, but does it really matter? If they get tired of selling by owner they will most likely come to you for help. The supermarket knows that not every single person who takes a sample will buy the product, but they don’t make you sign a contract to buy the bag of trail mix if you sample it. If a product is that good the store sample will get a good ROI.