A real estate consultant is identical to a real estate agent in the work they perform, but the compensation setup is vastly different. If you’re serious about buying or selling and want to save some money without compromising your quality of service, a consultant is right for you. Read on to learn more about their offerings and how hiring a consultant will benefit you.
A Real Estate Agent
Your typical real estate agent charges for their services through a commission, which is often approximately 5% of the sale price of the property. The listing agent charges the full 5% from the seller, then pays out a predetermined amount of their commission to the buyer’s agent, which is often an even split or close to it. For example, for a $700,000 sale, the commission each agent earns would be approximately $17,500.
A Real Estate Consultant
A consultant, on the other hand, charges an hourly rate for their professional services. Their compensation is usually paid at the close of escrow, just as a regular commission is, with the exception of clients who decide not to sell or buy after all. For example, if your consultant works 30 hours to help you find a home and charges $125 hourly, you’ll owe them $3,750 at closing. This is clearly a fraction of the cost of a typical agent, and that extra money they’d otherwise charge for commission will be yours whether you are a buyer or seller.
If you are a committed buyer or seller, hiring a real estate consultant could save you thousands of dollars. The Tocco Group has been working in Manhattan since 1986 and provides consultant services for all your real estate needs, from property management to investing. Just give them a call at (212) 544-2995 to schedule an initial consult.