What is Consulting to You?

Group Organizer

Oct 15, 2008 7:31:51 AM

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There is apparently much confusion surrounding the label "real estate consultant." I thought it would be a good exercise to get many different viewpoints on this topic. Here is mine:

Now a few words about those who call themselves consultants but actually practice traditional business. I am aware that the label "consultant" has gained popularity in many circles. Several of the nationally known real estate trainers suggest that you just flip a switch and start calling yourselves consultants overnight. This is fine, if you wish to add even more confusion, uncertainty and doubt in the minds of the consumers. If you are not a consultant, you should not call yourself a consultant. And what, you may ask, is a consultant?

In our world, a consultant is a real estate professional who gives (usually for a professional service fee) advice, counsel, interpretation of data and services to clients at the request of and under the employ of the client. The real estate consultant is tasked with providing the specific service or group of services to the client, regardless of whether these services are part of a transaction or not. The real estate consultant is then a trusted adviser.

Of course, many real estate professionals can use the above to label themselves consultants, and that is great. We are not as concerned with the consultant as we are concerned about the consulting business model.

Under the Consulting Business Model, professional consultants work for the client at the behest of and as employed by the consumer. The consumer has all right of choice and can employ the consultant to perform any manner of tasks that the consumer feel are desired.

Now your thoughts. . .

Jack H

John Cleek, Ph.D., e-PRO

Group Member

Oct 15, 2008 8:23:44 AM

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Jack,

You raise a good question. Obviously a consultant is anyone who provides advice to others, either for a fee or pro bono in areas where they possess appropriate qualifications and expertise. But the absence of any form of credentialing or licensing makes it possible for anyone to call themself a consultant.

I have been working as a consultant for nearly 40 years in a variety of fields directly related to my areas of expertise and experience. I list myself as a Realtor® and Marketing Consultant. My clients seek my services either because of past acquaintance or by referral. I am very comfortable with my professional ethics and have never had a client complain that I was pretending to offer services for which I was not properly qualified.

But I have known far too many individuals who passed themselves off as consultants in areas for which they possessed inadequate qualifications. It gives all of us a bad rap when we have to clean up after such non-professional self-styled consultants.

John E Cleek, Ph.D., e-PRO,
Realtor® and Marketing Consultant
The CrownPlatinum Team
Crown Realty of Kansas
Miami County - Linn County - Johnson County
1005 W. Amity • Louisburg, KS 66053
johncleek@crownplatinum.com
www.crownplatinum.com
Pho: 913-709-4423 • Fax: 913-837-2549
Finding the RIGHT REALTOR . . . Priceless!

Jack Harper

Group Organizer

Oct 15, 2008 9:08:53 AM

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Quoting johncleek:

My clients seek my services either because of past acquaintance or by referral. I am very comfortable with my professional ethics and have never had a client complain that I was pretending to offer services for which I was not properly qualified.

Jack responds: John has hit the nail squarely on the head in my opinion. The key is that one must be an expert to charge for expert services. Any attempt to pass yourself off as being qualified to provide services for which you have no expertise is quite possibly a minor form of fraud (if there is such a thing as minor fraud).

John goes on to speak of some he has had to clean up after. . . and I think we can all relate to that experience.

By the way, there are credentials available. ACRE is one of them that I am familiar with. But, beyond just having credentials is the need to have the credential provider be supported by a national sponsor. This would lend impact to the credential. Unfortunately there is not yet any NAR-supported credential for consulting.

JackH

Jack Harper

Group Organizer

Nov 6, 2008 9:05:19 AM

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It is clear to me that many people confuse discount brokerage with consultative brokerage. That will change over time and as we invest the time and energy to educate the public as well as our industry onn the consulting business model(s).

One company that is wont to fit into any business model is Redfin. This relatively young company started their life as a pure rebate-oriented business. Glenn Kelman opened shop in Seattle with the promise of changing our industry through client participation in the process for which they would receive substantial rebates on the commissions. This is not the consultative way, but could easily be confused with it.

Today, in a press release Redfin announced that they were reducing that rebate and increasing their services - essentially a move toward traditional brokerage. They also announced earlier a 20% reduction in their staff.

What does this mean to the consultants? Probably not much. If you follow my personal transition plan, you will likely be first a traditional broker and second offer your clients a menu of services based on their informed choices. Since they can choose from such a variety of methods, you are not trying to "buttonhole" them into your personal preference. Remember, it is about consumer choice.

If this is at all confusing, bear with me. We are about two weeks away from first run printing of my first book, which I feel will help all to clearly understand and implement these changes.

Best,

JackH