While it's true that most people purchase and sell only a handful of homes during their lifetime, there are dozens of situations when consumers can benefit from unbiased, disinterested information provided by a real estate consultant, perhaps as often as one or more times per year.

Real estate consulting works well when consumers want information and suggestions that can be used to make better decisions, decisions which save time and money. Much like the way appraisers, surveyors and attorneys work, today's new breed of real estate consultants provide third-party information to consumers, typically charging a an hourly, flat, or other type of non-contingent fee. The consultant evaluates the consumer's situation and provides suggestions and solutions devoid of pressure to make any buying or selling decision.

A real estate consultant can be licensed as a broker or salesperson, but such consultants can also hold other professional credentials such as a contractor's license or an appraiser's certificate. Consultants are unique in that they specialize in only a handful of areas. This depth of knowledge commands that a consumer pay a professional fee when accessing a consultant, much like a defense attorney who is sought for his or her track record in the courtroom.

How can brokers and other professionals be used as consultants? Here are some examples:

Improve vs. Move

When a homeowner purchases a house, he or she first chooses the neighborhood based on safety (the lack of crime) and the quality of the school district. Once satisfied with the neighborhood, it's logical that should the owners outgrow the house, improving it rather than moving to another in another neighborhood often appears to be the most logical solution.

While logical, improving may not be the most financially prudent solution for the long run. What if the consumer over-improves the home making it impossible to recover the remodeling money that has been put into it? Or what if the improvements suggest a price range exceeding the majority of homes in the neighborhood making it virtually impossible to sell? A real estate consultant can examine the improvements desired, price each out compared to similarly-equipped homes, and help the consumer weigh the financial pros and cons of improve vs. move.

Type of consultant required? One who specializes in construction, appraisal, and/or a licensee proficient in selling this type of property.

Time involved for the real estate consultant? Between two to five-plus hours depending on the depth of information to be researched and the improvements involved.

Ways the consultant could be compensated? By an hourly fee, flat fee, or combination of the two, with or without fee caps, and with or without a retainer fee (depending on the consultant's business model and the period of time it would take to complete the consulting project).

Refinancing and home equity information and advice

If interest rates are dipping as they are at the current time, cocktail-party conversation is likely to gravitate toward releasing sleeping equity via refinancing or equity lines of credit.

But as one consumer shared with me:

"A lender is the last person I'd talk to initially when trying to decide if refinancing or getting a second mortgage makes financial sense. After all, that's what lenders do---they make loans."

An experienced real estate consultant, on the other hand, can access a variety of information sources including online calculators and apply the consumer's specific information, coming out the other side with the pros/cons. long-term costs and possible consequences of freeing up equity.

Type of consultant required? One with a strong financial background or advanced degrees in finance or business, or a real estate licensee adept at this type of number crunching and evaluation. Sidestep using a lender posing as a real estate consultant especially if that person has any vested interest in the outcome of the information.

Time involved for the consultant? Between one and three hours, unless additional information is required such as payoff information on your current mortgage, etc.

Ways the consultant could be compensated? Hourly or flat fee is best. A knowledgeable consultant should be able to estimate, with accuracy, approximately how long gathering information, analyzing and presenting it should take.

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