How Home Sellers Pay for Professional Real Estate Help in the Marketing and Sale of their Home

Laurie: Sure. Consumers like the idea of consulting in theory, however, more often than not opt for a full commission as well.

It seems like your clients appreciate the options.

Laurie: They do. In the recent past, I have been working almost primarily on a referral basis and I am finding that my past clients and sphere of influence folks are much more willing to want to work with me on an hourly consultant basis for the preliminaries but will still opt to go the full commission route when listing.

While they're getting their toes wet, they want to work hourly, but when it's time to list and sell their home, they convert to a commission structure. Interesting - thanks! Everyone else?

Mollie: I had a lot of takers for hourly for instance when the consumer was not looking to do a traditional buy or sell transaction. Perhaps they didn't know whether they were ready to buy or sell or needed general counsel. When it boiled down to the fact that they definitely wanted to buy or sell, 90% of my clients chose a traditional commission.

Ron: I can only think of one or two clients in five years or so of consulting practice which has opted for commission after having the consulting model explained to them. One didn't want to put any money on the line (I always get a retainer or deposit on signing) and the other was being reimbursed by her government employer and all that employer could handle was commission.

Thanks - that's an interesting insight, especially now, with our rocky economy and many homeowners underwater or otherwise experiencing financial challenges. It would be good to see how the whole issue of distressed sales impacts the way consumers choose.

Paula: I can speak to that. When I do "regular sales" - not short sales or bank owned homes - often my sellers want to work together with me in ways other than strictly commission basis. But right now in Florida, it's almost all REOs (bank owned properties) or short sales. The banks can't handle anything unusual, so with them it's all commission.

Merv: I've seen that too. In my experience, most taking the commission approach did not want to or did not have the funds to pay for services when they were provided.

The whole angle of "saving money" can be seen on both sides of the equation, then. Consulting really is about offering choices! I imagine that no matter which way the consumer goes with this, the fact that choices are offered makes a big impression.

Mollie: I think that was huge: because I offered choices, they went with me, rather than someone else because of the transparency of the consulting approach.

Laurie: Agreed - my clients truly appreciated and valued the transparency that I brought to a listing presentation.

Ron: My consulting clients have the option of hiring me for just the essential, effective deliverable absent the "fluff and other nonsense" included in typical commission remuneration. Most agents don't provide this option.

Clients in distressed property situations may not feel that they can opt to pay a flat fee or a fee for services. They may feel that the only way that will work for them is to hire someone based on commission, so that the fee is only paid if the home sells and closes. What kind of clients prefer the non-commission options, besides those who are not in trouble with their mortgages?

Merv: Generally the younger, professional, upwardly mobile, internet centric clients.

Ron: Most of my clients!

Paula: Everyone else!

Thanks to our participants for their insights and experience. There are four primary take aways:

1. Offering guidance based on experience as opposed to "selling" oneself,

2. Transparency is key to the conversations with potential clients,

3. Clients appreciate having options or choices and

4. In many cases, the traditional commission approach was agreed upon.

So, candid guidance, transparency, choice and flexibility in payment options are the primary keys to their success!

If our readers have comments, questions or other experiences, we encourage you to add your comments and/or "join our community" to participate.