Last week I felt I had the perfect opportunity to use the consulting model. A gentleman contacted me and had some questions about a property that is for sale about 30 miles from here. (We are a very large county, but with only 25,000 people so 30 miles is not out of the area for me.)
Anyway, he told me that he had already seen the interior of the property and was interested in writing an offer if my answers were satisfactory to him. I took that brief pause to explain that the property had a pending contract, so that any offer would be a backup contract. I answered his questions and he still wanted to write a backup.
At that point, I thought this would be a very good time to explain my rate schedule and for writing a contract my fee would be $50. If the contract went through then I would refund the $50 to him. If it did not go through, then the $50 would be for the time we spent writing the contract and anything further that would take place.
He agreed and we scheduled a day for him to come in and sign the contract.
About ten minutes later his mother calls me. "I bought a house just a few months ago and I never had to pay a fee! You are lazy and don't want to work for your money."
So, I explained the way I work and my rate schedule. Her response: "I don't care if you get paid or not! My son is not going to pay for you to write up a contract. You get paid by the seller not the buyer!"
From what I understand she called another agent to have her write the offer, but that agent for whatever reason chose not to help her. I found this out from the listing agent.
Unfortunately, this is the feeling of many people who reside in our area and it is difficult to sell real estate even in a traditional setting. It's not unusual for someone to walk away from a purchase at closing...it has already happened twice this year and we've barely gotten started!
Any thoughts on whether or not consulting is going to work here? Even though my broker is not against my trying this, she is worried that because I am the only agent trying it that most people are going to be like the lady above and I might drive business away because they will want to use someone from another company who doesn't charge any fees, whether refunded or not...