Real Estate Consultant vs. Real Estate Agent
Real Estate Consultant vs. Real Estate Agent
Should You Hire A Real Estate Consultant?
Which is the best choice for you?
In the intricate landscape of real estate transactions, choosing between a real estate consultant and an agent can significantly impact your experience and outcomes.
While both possess expertise, a real estate consultant often brings a distinct advantage through their comprehensive understanding of market dynamics, financial analysis, and negotiation strategies.
Unlike traditional agents, consultants provide data driven, unbiased advice tailored to your unique needs, leveraging their extensive knowledge and network to maximize your investment potential, and home-buying or selling experience.
What is the difference between a consultant and an agent?
Consultants offer strategic advice, requiring specialized knowledge, while agents focus on buying and selling.
Real estate consultants (if licensed) and agents may facilitate property transactions but differ in focus and education.
The most significant difference stems from their roles and level of preparation: a consultant provides expert advice on a range of topics, including real estate investments, financial and market analysis, neighborhood dynamics, pricing strategy, and negotiation, while an agent or broker primarily facilitates property transactions.
In truth, a highly qualified, experienced agent provides some of the services a consultant offers. A consultant, by definition, is expected to have the financial and analytical skills to support the investigation of alternatives and to analyze market dynamics.
In sum, real estate consultants, also known as real estate advisors, offer guidance to clients on residential and commercial properties, may assist in securing financing for real estate purchases, engage with property developers, and provide insights on special situation properties.
Can a real estate consultant also be a real estate agent?
Yes, a consultant can also be an agent or broker.
A subset of consultants are licensed as agents/brokers and are thus available to handle the research and the purchase/sale transaction.
In this case, a consultant provides service at the front end of the transaction in the form of research and advice and at the close of the engagement as a licensed agent or broker providing additional services of negotiation and document processing.
In my case, I am a consultant and a licensed real estate broker. I can be paid upon the close of sale (as a broker) or by fee-based agreement.
Combining a licensed broker and a consultant offers the best of both worlds. It makes sense!
The real estate consultant is the expert who provides reasoned and professional advice during the research and investigatory phases of buying, selling, and investing in residential or commercial property AND provides expertise and assistance negotiating the close of your purchase or sale transaction.
What does it mean to be a broker rather than an agent?
Both agents and brokers are licensed to assist in the buying and selling of real estate. When a deal is closed, each is paid a commission.
A real estate agent must work under a broker and may represent either the buyer or the seller.
A real estate broker has the duties of an agent but undertakes additional licensing requirements and, generally, must work in the industry for a period of years before qualifying to become a broker.
As exerted from the California Department of Real Estate:
A real estate broker is a special agent who is authorized by the principal to carry out certain defined acts within the course and scope of the agency established by the principal.
The real estate salesperson is an agent of the real estate broker, regardless of whether he or she is an employee for purposes of the Real Estate Law, or an independent contractor of the real estate broker for federal and state income tax reporting purposes.
The broker in the real property transaction is responsible for his or her salesperson, who acts as the broker's agent.
What is a realtor?
A realtor is a member of the National Association of Realtors (NAR) and may be an agent or a broker.
In California, as of year end 2023, there were approximately 205,000 members of the National Association of Realtors (NAR), roughly 90,000 real estate brokers and 225,00 real estate agents active in the State.
Source: NAR, Wikipedia, and private sources
In summation, the universe of real estate consultants that are also real estate brokers is a small subset of real estate professionals.
There are consultants such as John Burns Research and Consulting that offer excellent research targeted at developers, institutions, and professional efforts.
There are also consultants, such as myself, who are licensed real estate brokers. I have a background in financial markets and local real estate issues and focus on transactions in residential, commercial, and investment properties.
Schedule A Free Consultation
I consult on a range of transaction types and deal structures, I would be pleased to have a discussion. Schedule a call here.
Tom Levine, Real Estate Broker and Consultant
CA DRE #02052698
Publications and Podcasts by Tom Levine
Is Compass just Redfin on Steroids - article on LinkedIn
Real Estate Tokenization - Part 1
Stock Market Highs and Real Estate Risk
The above article is reprinted, with updates, from a LinkedIn post of March 2024.
About The Author And Podcast Host
Tom Levine, leveraging a 25-year tenure in capital markets, leads Zero Hour Group and Native Angelino Real Estate, offering a suite of consulting, strategic analysis, and real estate services.
An alumnus of USC Marshall School of Business and the Claremont Colleges - Pitzer College campus with a term at the London School of Economics. Additionally, he holds a CADRE broker's license and the designation certified Short Sale Specialist under the National Association of Realtors.
Have a challenging transaction? Let's discuss.