- April 25, 2018
What is the difference between a real estate agent and a real estate consultant?
The terminology used to identify real estate professionals varies a little from state to state. Consultants, who often serve as Brokers, are generally required to have more education and experience in the real estate industry than real estate salespersons or agents.
While agents are affiliated to a particular agency or property and gets paid for the sales of that property, consultants serve as brokers or advisers for the potential client, real estate investor or home seeker, using their vast knowledge of the industry, market trends and interest of the potential client to guide them in their decision making.
Consultants have the privilege conducting due diligence and industry market intelligence. This guides them to help clients make informed decisions. This is not the case with an agent who is usually affiliated to a particular agency or property and would usually focus on selling that particular property regardless of what the market trend or due diligence reveals. In this case, all listings are placed in the broker’s or agency’s name, not the salespersons/agent.
A Consultant can broker deals directly with home buyers and sellers on behalf of their client. They can also have a staff of salespersons or agents working for them (mostly through an agency).
In conclusion, while both agents and consultants play in the real estate industry, they are both motivated by different incentives. Agents are “property focused” and are rewarded for the sales of the property, while a consultant is mostly “client focused”, and is rewarded for serving the interest of the client.
