Consulting and Limited Service

This ACRE® Grad voiced a real concern that a lot of our ACRE™'s have when their colleagues talk about them doing "limited service". They wonder if maybe their clients are thinking the same thing, in fact their real concern can be expressed as this: "Is consulting limited service?".

I think the answer to that question is that Consulting in some cases CAN be limited service and there is nothing wrong with that, in and of itself. The problem is that the term "Limited Service" has gotten a bad name from MLS Entry Only which throws someone in the MLS (a functionary task where someone pays big bucks for 15 minutes of typing), but often leaves them without vital fiduciary counsel. It usually makes the consumer feel used when all is said and done.

In a way, one could compare the practice to prostitution. Think about it: a woman sells her body because that is what is "marketable" when her real value (and the value of all humans) lies in her mind and personality - the person she is. The "john" spends a lot of money to "have" her, but all he really got for his money was the facade - her body is not who she is.

When sellers spend a few hundred dollars to be listed in the MLS, they are led to believe that they are getting the benefits of the MLS for a fraction of the price. Most of the time they are disappointed because the fiduciary representation and care is where the value of having an agent is - not the entry itself. Agents know this, which is why most cringe at the idea of "limited service" because they equate it to be MLS Entry only.

But limited service, in and of itself, is not a bad thing because sometimes that is what the consumer needs. I call it CHOICE. Sometimes a seller finds their own buyer - and I think that as matchmaking services on sites such as Google Base, Craig's List, and Yahoo contintue to proliferate - that this will happen more and more. The seller doesn't NEED a full service package - they NEED help in negotiating and troubleshooting, in other words, the vital contract to close counsel and care.

Our industry's refusal to provide this "limited service" does not shut down this need. It simply throws these sellers into the arms of attorneys (who can't do this as well as we can and often charge twice as much) or leaves them without any help (which causes them to lose a lot of money).Sometimes a seller wants to do their own feature sheets or digital photography - should this mean that they have to do without an agent's negotiating and troubleshooting skills?

Homeowners have to make remodeling decisions which cries out for the knowledge that a real estate pro can offer. A few hundred dollars spent for a couple of hours of consulting would be money well spent to ensure they were making the right decisions. Does the industy's refusal to provide this "limited service" take away this need? No, but the consumer loses because they often put their money in the wrong places and it shows up a few years later when they go to sell.

Unassisted buyers often fall in love with a FSBO (For Sale By Owner) and would be glad to pay a professional for a few hours of help in negotiating an offer and making sure everything is in place so they don't lose their deposit or the house. And wouldn't the FSBO be happy to have that fee included in the transaction, especially since it would be a much more reasonable cost than the standard co-broke? Who loses when we don't offer this "limited service"? The buyer does, the FSBO often does, and the real estate industry does. I maintain that we have lost untold amounts of money over the years because we don't offer choices.

The real estate industry by in large thinks that if we don't "give in", that people will be forced into a full package, paid by commission. I'm sorry - those days are over. In the Internet world, there are a growing number of alternatives. The alternatives may not be near as good as a real estate professional but our refusal to address these needs only sends the public to others.

The heart of consulting is listening to the consumer's needs and then presenting alternatives. Each alternative has it's plusses and minuses. If you have set up your hourly rate and fees correctly, it will not matter to you what they choose, you win because they are choosing you because you give them the best thing in the world - responsible transparent CHOICES.