About Transparency

Paula states: btw Wendy, a great agent friend of mine who used to live in PA, and was the former Realtalk managing editor may also have some insights to share with you regarding changing the laws in PA. I don't know how far so got with that before she moved to AZ

Jack adds: I guess that I fall on the side of working within existing laws until they are changed. Moving to another state just to add consulting services seems a bit on the "over-the-top" way of doing things.

By the way, Pennsylvania prohibits you from advertising "consulting" services. On the other hand, Pennsylvania allows consumers to do the following, per the DOJ research site:

snip:

Pennsylvania law allows consumers to choose the brokerage services they want by allowing them to waive, in writing, certain minimum services otherwise required by law. This written waiver preserves consumers' ability to choose the brokerage services they want: Pennsylvania Statutes, Title 63, Section 455.606a.

end snip

I suggest that you take the following action:

1. Talk to your managing broker to find out what her/his position is relative to minimum services

2. Ask your managing broker to review your proposed offering.

After the broker review and approves the offering, you can feel reasonable assured it is allowed. Just to be sure, a call to Harrisburg will give you the final word.

By the way, no matter what you call yourself - consultant, counselor, agent or service provider, you are really equal to the services and quality you provide, in the eyes of your clients.

Best regards and happy consulting

JackH

Wendy,

I've never considered consulting as an opportunity to "upsell" anything. Yes, sometimes people are drawn to you because you offer certain services or a certain fee structure or whatever happens to catch their attention from your marketing. And sometimes, when discussing those options and the others that you offer they MAY decide to avail themselves of other, more expensive services. But that's not really the goal. The goal is to be able to provide CHOICES to the consumer...choices that protect them, make sense to them, and service their needs. It's not uncommon for a prospective seller to be attracted to an ad that says "list your home for $xxxx" (which is much less than they expected). But when they truly understand their options, the risks and benefits each offers, they often decide the let the agent bear the brunt of the risk, ultimately costing themselves more dollars. But then, if the house doesn't sell, they haven't spent anything.

What i believe we, as an industry, have grossly failed to emphasize with the consumer is why commissions are what they are...a risk based method of securing services. And with that risk comes a premium payment.

I agree with you, Judi! It's ironinc, I was just at a listing appointment yesterday and I found myself defining and explaining the fee and what my services actually entailed. Even though this particular client had a "whatever" attitude when it came to my commission and probably assumed that all agents do the same thing.

How true, Wendy. We've been commoditized for so long that the consumer tends to think the only difference between agents is how much they charge. That's a huge hurdle...I guess we have to think "baby steps"...one client at a time.

Hi Jack:

Terrific article! Reminds me of when I was a financial planner full time with E & O (Errors and Ommissions Insurance).

The public looks at certain professions as EITHER lying directly, OR not telling the whole story (ommitting purposely). Caveat Emptor.

There is risk in any transaction, especially real estate and stocks. But if you do NOTHING, you stay broke.

Man I wish I could write as well as you do! :)

All the best,

Brian