Isn't Consulting just Discounting in Disguise?

For over a decade (at least) there have been debates about the traditional commission based services vs discounted services in real estate and I believe the debate will continue with no clear answer ever really emerging. What I do firmly believe though is that it is definitely time for real estate professionals to truly become professionals by becoming "Consultants" rather than sales people.

A consultant is able to offer unbiased advice and service since the services are based on what is good for the client, not tied to whether they chose to buy or sell and the agent's need to make a commission. Perhaps if there had been more consulting and less selling during these last many boom years, there wouldn't be quite so many homeowners in homes they shouldn't be in.

Our job is not so much to get someone to buy or sell but rather to help them to decide whether it is in their best interest to do so at a particular point in time - sometimes it is in their actual best interest not to make that move right now, but rather to take other steps such as remodelling and sell later or wait until their debt load is more manageable and they have saved some money. Basing our compensation on the services provided, at the time they are provided, can address the needs of both the consumer and the professional is a way so much better for both.

We work hard to become the knowledgeable professionals that we are and we deserve the trust and respect of the clients. As long as we portray ourselves as being on the same level as a clerk that works at the mall or car lot, we can't really blame the public for complaining that we are paid too well and question our trustworthiness.

Real estate consultant fees are definitely NOT in the same league as discounting. They are also much more fair than straight commission -for both sides. It is a fact of human nature that we value what we pay a fair price for. Consulting fees in combination with a commission plan tailored to the needs of the client are the best way to achieve the best results for all.

Betty said:

There is very little difference in "consulting" in the traditional model and the ACRE model - as far as determining basic clients goals and needs. The primary difference is that ACRE takes the consulting concept a couple more steps:

Jack Responds:

I am not in favor of calling the consulting model the "acre" model. ACRE is a designation that is paid for with your money and by taking a simple online course. It is not a business model.

The consultative approach has been around for a very long time - way before acre and way before you and I.

If you want or feel the need for a designation, I would suggest one of the more important ones, such as GRI, CRS, CRB and ePRO ( not a designation, but a certification).

Just my opinion.

JackH

Betty said:
There is very little difference in "consulting" in the traditional model and the ACRE model - as far as determining basic clients goals and needs. The primary difference is that ACRE takes the consulting concept a couple more steps:
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I agree, Betty. I'd also like to expand on your point that, unlike some other "consulting" programs, the emphasis as is trained by the ACRE program is much more inclusive. Some programs discuss consulting as thought it is "fee for service". The perspective trained in ACRE is that while "fee for service" includes options provided to the client, they're not the only options. Many clients prefer to hire their agent on a commission-after-close basis. If the client is exposed to their range of options, along with the risks and benefits of each, they certainly can choose whichever best suits their needs and budget. That's all a part of the "transparency" we offer.

JudiB says: agree, Betty. I'd also like to expand on your point that, unlike some other "consulting" programs, the emphasis as is trained by the ACRE program is much more inclusive. Some programs discuss consulting as thought it is "fee for service". The perspective trained in ACRE is that while "fee for service" includes options provided to the client, they're not the only options.

Jack replies:

Judi, I have always appreciated your posts and your ability to clearly state your position relative to consulting. Now, please understand mine. I make this assertion without any motive, other than to cut through the haze.

ACRE is not a model. ACRE is a self-proclaimed designation as promoted by Mollie Wasserman, yourself and others, available to those who pay a fee and an annual subscription. I will not attempt to quantify the designation's value nor the content of the course, which I completed in a matter of minutes (and I am no genius, believe me).

From all that I have seen and read, ACRE's real focus has been to promote ACRE. Not a bad thing, if that is your purpose. There is very little content that I have seen (it may be there, but I can't find it) that tells me or anyone else how to make money with this program.

Some of the management team (I guess that is who they are) have put together a discussion board for paying members that is not unlike what we have here on RealTown. The board is well designed and can be useful, if and when it is no longer used as a way to convince ACREs to go forth and multiply by referring others to take the course.

We in real estate need more clear understanding of the following:

1. How to implement this in my daily life?

2. What are some of the pitfalls and how can I get through them?

3. How can we do this on a brokerage level?

4. How can I promote this to my client base such that I realize additional income streams instead of loss of income with reduced per-client fees?

5. Is this the right time?

6. Do I really want to do this now, given today's market?

7. How can I get my broker to allow this?

I can go on for a long time, but you get my point. We don't need another paid-for designation. We need realtime applicability. This focus on the "how" has been missed by ACRE. This is, by the way, my core focus.

My client base tells me clearly that they come to me for the simple fact that I do offer the implementation training and support that is so sorely needed.

I now close by saying that it will do the industry no good to have a rock throwing contest here in the group. I think it will be best to leave these discussions for other venues. In any event, I will not allow this group to denigrate into either an advertisement for or a campaign against ACRE or any other such product.

Best regards

JackH

Amen! Jack ... to your views! (K.I.S.S. really works)

I am not used to getting so much "ClogMail" or is it "BlogMail"?

I will regrettably "pull ze plug" on the discussions if it continues.

Now about me and "training".... I have signed up for some "training" but Not for ~$500 - - - that sounds high, and I don't need a "help-line" person available for a year??? That is not for me. Again, K.I.S.S. is fine. The Blog will help... IF we Listen MORE than yak...

Bill Quigley