עברית
The Misconceptions About Real Estate Consultancy and the True Value of Professional Service
I chose to address this topic following an unpleasant experience that left me with a bitter taste, to say the least.
Unfortunately, the field of real estate brokerage has been burdened with a negative reputation, often portraying brokers as opportunistic middlemen chasing easy money. This perception, that wealth in real estate comes effortlessly and quickly, has led to an influx of individuals entering the profession with unrealistic expectations. In response, approximately seven years ago, the difficulty level of the licensing exam was raised, yet the demand for the profession remained high, as many still hope for a quick financial windfall.
As in any profession, those working in real estate are individuals with diverse characteristics. Dishonest and unprofessional people exist in every industry—those who cut corners, misrepresent facts, make empty promises, and lack dedication to detail. However, real estate brokerage seems to carry a disproportionately negative stereotype in public perception.
Breaking Stereotypes
This unjustified stigma is reminiscent of how Jews have been viewed throughout history. Despite the immense contributions of Jewish individuals across various fields, they have often been unfairly labeled as greedy or dishonest.
For this reason, I deliberately do not refer to myself as a “broker”—not out of pretension, but because the term fails to reflect my approach. Instead, I present myself as a real estate consultant—a title that signifies expertise and professional guidance. Just as mentors and advisors in other industries charge for their services, real estate consultancy also justifies professional fees.
The Problem with Undermining Commission Fees
In a regulated market, commission fees are legally defined. Yet, due to the perception of “easy money,” many people attempt to negotiate fees as if they were bargaining in a marketplace. The real damage comes from brokers willing to slash their commission rates to unreasonable percentages simply to close a deal before another broker steps in. This unprofessional approach further devalues the industry. In contrast, such behavior would never be accepted abroad. In the United States, for instance, even though only one party typically pays the commission, no one questions or negotiates the standard 5% fee.
While it is true that not all real estate consultants provide service that justifies their fees, many dedicate themselves entirely to their clients—offering thorough research, tailored guidance, and constant availability, often 24/7.
When Professionalism Is Taken for Granted
In one of my transactions, the buyers initially agreed to a 1.5% commission (despite the legal standard being 2%). Understanding market conditions, I accepted this. However, upon visiting their high-end apartment, I was presented with another broker’s agreement offering a 0.6% commission and was asked to match it. Eventually, I reluctantly agreed to 1%, as they argued, “This is what we signed with all other brokers.”
But I, and many others, am not like all other brokers.
In another case, a property owner refused to sign an exclusive brokerage agreement, claiming that they never “hired” me to sell their property. It is common for real estate consultants to approach property owners, offering to assist with sales or rentals. In luxury real estate, commissions are significant, but they are directly proportional to the effort and expertise invested. If a consultant successfully introduces a client and completes a transaction, is it not reasonable that they receive fair compensation? After all, even if the commission is high, so is the seller’s profit from the completed deal.
In this instance, the seller only agreed to pay based on a tiered structure related to the rental price. A minor price discrepancy led them to slash my commission to a quarter of the originally agreed amount. After dedicating extensive hours to this property, I seriously considered walking away from the deal. A fellow consultant reminded me: “Principles and dedication don’t pay the bills.”
Is Money the Only Factor? What About Integrity and Respect?
Contrary to popular belief, making money in real estate is far from easy.
- Countless potential buyers may view a property without making an offer.
- Endless phone calls are required just to assess genuine interest.
- Negotiations often stall over minor details, even when a deal is nearly finalized.
- The marketing effort extends far beyond listing on local platforms like Yad2—luxury properties require exposure on international websites, paid promotions, and social media campaigns.
When dealing with a true real estate professional, one who demonstrates transparency, integrity, and full dedication—shouldn’t their work be fairly compensated?
If you choose to work with less professional brokers, that is your prerogative. However, do not assume that all consultants operate the same way. Every industry has high-level professionals and those who fall short, but real estate consultancy is a profession, not a hobby.
A Final Thought
Luxury properties do not sell like hotcakes. Until a deal is finalized, we essentially work for free—a challenging reality when professionals must support themselves.
A real estate consultant is not just a facilitator of deals but a trusted advisor who guides clients through one of the most significant financial transactions of their lives. Those who dedicate themselves to their craft deserve the respect and compensation that reflect their expertise.
Anat Harran
Luxury Real Estate Consultants & Brokerage
📞 052-6595535
Luxury Homes in Savyon: Sales | Rentals | Land
