"RE Consulting-Sounds Interesting But It Will Never Work in My Market"

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Education & Training with Sell with Soul

A few weeks ago I started a series of blogs on real estate consulting and the most common objections I hear as the newly annointed Commander and Chief of the Accredited Consultant in Real Estate (ACRE) program.ACRE

The first objection I addressed was: "... my broker will never go for it" - you can read that here.

The next objection I hear a lot is: "...it will never work in my market!"

The rationale behind this objection seems to be that if you work in a market with a low price point (e.g. the average price of homes is less than $100,000), there ain't no way you can charge people upfront or non-contingently for your service.

I don't get this argument. At all.

What is it about a lower average home price that would make people hesitate to pay a reasonable fee for real estate-related services if it's a good deal for them (which it must be for them to be willing to do it)?

Can a real estate consultant in a lower cost-of-living market charge the SAME fees as someone in a higher-cost-of-living market? Of course not, but they shouldn't need to... presumably an agent who works in a rural community in, let's say, Arkansas has a much lower cost-of-living him or herself than an agent who works in Washington DC. 

So, maybe the DC agent charges $500 for Service X and that's considered fair and reasonable in her marketplace. Could the agent in Arkansas charge that? Probably not - maybe he can only charge $100 for the same service. But that $100 will go a whole lot further in his budget than it would in the DC agent's.

Am I missing something?

 

 

 

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Rainmaker
33,518
Chuck Capan
REMAX River Cities - Moline, IL
REALTOR Licensed In IL. - Moline Homes Quad Citie

Arkansas = Bill...DC = Ed? Charging a fee for a service provided...what a concept! Unfortunately I'm in the "my broker will never go for it" category. Hmmm maybe it's time to switch categories.

Sep 25, 2012 11:29 PM #1
Rainer
18,100
Patty Purdue Laforte
Realtypath LLC - Salt Lake City, UT

I remember reading an article years ago by a woman on the east coast that does only per hour consulting for real estate transactions.  I think it's a great idea and would be perfect for the FSBO or for people purchasing homes from people they know where the house has never been listed. 

I signed up for your teleseminar and look forward to it!

Sep 26, 2012 12:48 AM #2
Rainmaker
485,057
Jennifer Allan-Hagedorn
Sell with Soul - Pensacola Beach, FL
Author of Sell with Soul

Might be, Chuck! It really is wonderful to have all the flexibility of truly being your own boss. 

Exactly, Patty! See you tomorrow!

Sep 26, 2012 03:08 AM #3
Rainer
284,468
Steven Cook
No Longer Processing Mortgages. - Tacoma, WA

Jennifer -- that is the way to build business.  Show people why their objections are worthless.

Sep 26, 2012 03:32 AM #4
Rainmaker
1,058,348
Rob Arnold
Sand Dollar Realty Group, Inc. - Altamonte Springs, FL
Metro Orlando Full Service - Investor Friendly & F

I charge upfront fees to list properties in the MLS and assist with pricing.  They pay a little more if they want a Realtor lockbox and a virtual tour.  But these are for people that want to sell themselves and not hire an agent to represent them.  Not sure if you could get away with it on regular deals especially with the fierce compeition.

Sep 26, 2012 07:46 AM #5
Rainmaker
485,057
Jennifer Allan-Hagedorn
Sell with Soul - Pensacola Beach, FL
Author of Sell with Soul

Rob - I'd never expect anyone to be able to "get away with anything" when it comes to charging non-traditionally... what you've done is exactly what I'm talking about... provide a service that people want and are willing to pay for!

Steven - Touche!

 

Sep 26, 2012 11:03 PM #6
Rainmaker
356,227
Sally Lawrence
Advantage Real Estate - Tehachapi, CA
Broker, CHS, e-Pro, SFR, REALTOR®

Apart from building my own business, I view showing people that their objections are worthless as a truly useful way to help people acheive their dreams and goals.  Helping them get out of their own way.

Sep 27, 2012 12:59 AM #7
Rainmaker
122,989
Glenn S. Phillips
Lake Homes Realty - Birmingham, AL
CEO, Lake Homes Realty / LakeHomes.com

Even when people claim to hate how things are done in RE, they are also too fearful to try something that is not how everyone else does things.

I think also that while consumers HATE the amount of commission they pay, they LOOOOVVVVE that they only pay if the deal closes. To pay anything without assurance of a sell is good business for the right service BUT... most people are not good with money, risk, or return-on-investment. G

Sep 27, 2012 05:22 AM #8
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