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

This is the first in a series of "round table" interviews with experienced ACRE® agents on their real estate consulting practice, led by our Times Community editor, Mary Pope-Handy.

Today's interview is with Ron Stuart, Laurie Furem, Mollie Wasserman, Merv Forney and Paula Bean, regarding how home sellers pay for professional real estate help in the marketing & sale of their home.

As an Accredited Consultant in Real Estate, you counsel clients rather than sell to them, and you provide a variety of ways in which you can assist clients in reaching their goals (and a variety of compensation models too).

The question I have for you is this: how frequently do your consulting clients end up with a traditional type of commission arrangement for selling a home as opposed to paying a flat fee, fee for service or an hourly rate?

Ron: Rarely
Merv: About 50/50
Paula: Not often with a "regular sale"
Laurie: It's mixed...
Mollie: My experience was like Laurie's

Let's dig a little deeper. It sounds like in many cases; clients opt for something other than hiring with a commission compensation plan.

Can you fill us in on that a little more?

Conducting oneself as a consultant AND offering transparent choice in services provided and the cost associated with those services sets us apart

We're having a great discussion on our private ACRE list serve, The Coaching Exchange, about consulting. It's clear from the discussion that there is still a lot of confusion about the role that a trained consultant performs and how they are paid for their services.

As we've said many times, consulting is not about a fee schedule! Consulting is a practice that provides quality, transparent choices with commission being just one of the choices offered. You can do 100% of your business by commission and yet practice as a consultant because you have the tools in your toolbox to offer other choices, both in the services you offer and how you can get paid. Providing choices is a wonderful thing - it brings you the business regardless of how they ultimately pay.

An ACRE® can offer you both the traditional system of real estate services by commission as well a variety of other compensation models, so the most obvious answer to 'when' is always.  It's always ideal to work with an ACRE® as your real estate professional because with an ACRE® you'll have far more choices in how to receive the services you want and need!

To elaborate on the 'why', an Accredited Consultant in Real Estate (ACRE®) can offer some more cost effective solutions as you only pay for what you need, and ACRE®s understand that real estate is not a "one size fits all" business. It's like going to a car dealership to buy a new car, but if all they had were red sedans of the same make and model, you'd go to another dealership where they had more choices, right?

If you'd like to have a report with the probable buyer's value for your home, an ACRE can do this for you and can be 100% unbiased

Sometimes you need to get some real estate help, you know it is going to take some time and effort for the real estate agent to do the job, and you'd actually feel better about it if you could simply pay for the service. Often, though, realty professionals are only paid by commission.  You can ask one to do you the "favor" but in turn your business (or referrals) will be expected down the road.  Not what you had in mind?  Time to find an ACRE, who will consult with you on your special project, charge you appropriately, and there will be no lingering sense of obligation for a favor done.

Transparency. Do you know exactly what you are buying and paying for?

Every seller is a "For Sale by Owner." Every buyer is a "do it yourselfer." It is simply a matter of how much of the work in a real estate transaction is contracted to a real estate professional. From none to the entire transaction. Or in industry speak, from the stereotypical FSBO for a seller to a "full service" listing.

Internet savvy? You may not need the whole 9 yards.

HouseShopping.jpgWHY CAN'T THE CONSUMER HAVE BOTH?

In a recent article in RIS Magazine, Brian Buffini, founder and chairman of Buffini & Company made a very interesting observation: despite the fact that 80-90% of real estate buyers start their home search online, how many, when browsing homes online and finding one that they like, would actually go to the next step and click "Add to Shopping Cart?"

Paying a full commission is like buying an insurance policy ... it can be very expensive.

In real estate, quality is essential for keeping the most money in your pocket when you ultimately close. But should that mean that you are locked into paying by commission in order to get that quality? I believe the answer should be no.

Of course, after you have explored and weighed different options, based on your individual needs and comfort level, you may find, as many consumers do, that a traditional commission is the best choice for you. And that's perfectly fine. But you should make that choice because it's the BEST option, not because it's the ONLY option.

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