Real Estate Development Consultant

The real estate industry offers many career paths, including consulting. Real estate consultants are typically experts in the industry with years of experience and specialized skills. Understanding this role can help you decide if this career path is right for you. In this article, we explain what a real estate consultant is, describe what they do, list types of real estate consulting and explore key differences between consultants and real estate agents.

What is a real estate consultant?

A real estate consultant is a person who offers expert advice and guidance on the purchase of commercial real estate. A consultant helps property developers by researching and analyzing data and providing other services to help with development. Consultants typically work full time and can be independent contractors or employees at a real estate firm or bank.

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What does a real estate consultant do?

Real estate consultants have many duties, including:

• Advise clients on real estate purchases or developments: The real estate consultant’s primary role is to advise their clients on the viability of real estate development, investing or purchasing real estate. They provide expert, research-backed advice to help clients make the best possible financial decision.

• Research markets, prices and real estate investments: Consultants spend a majority of their time researching real estate markets, current and historical real estate prices and investment opportunities. This allows them to provide more accurate guidance to their clients.

• Meet with real estate experts, bankers and officials: A real estate consultant often meets with other real estate experts to discuss prices, sales terms or industry trends. They also interact with bankers, investors and other financial experts and government officials.

• Establish client objectives: Real estate consultants help clients establish objectives for their investments or real estate purchases. This may include exploring the client’s budgets, financial options and purpose for the property.

• Serve as an intermediary for buyers and sellers: Consultants typically serve as an intermediary for real estate buyers and sellers. They ensure clear communication and facilitate the transaction by providing expert advice on pricing, terms and property values.

• Prepare and review forms: Real estate consultants can prepare financial forms or real estate documents for buyers and sellers. They research the necessary paperwork, help clients complete it and file it.

• Analyze real estate markets: Consultants analyze the real estate market to learn more about pricing trends, general economic trends and housing market changes. This analysis keeps consultants updated on changes or economic concerns.

Related: What Is a CMA in Real Estate? (With FAQs)

What are the types of real estate consulting?

These are the four primary types of real estate consulting:

1. Property development

Property development consultants advise large real estate companies, property development firms or commercial real estate investors. They research and analyze the area, land for development and historical pricing to advise clients before they begin development on commercial, industrial or even residential properties. A property development consultant has specialized knowledge in land development practices, laws and regulations and financial stipulations for property development.

Here are some key duties in property development consulting:

• Research potential development sites.

• Advise clients on development costs and challenges.

• Analyze historical real estate data or prices.

• Create feasibility reports for each area.

2. Firm consulting

Real estate consulting firms typically advise large groups called real estate investment trusts (REITs), which own and operate income-producing properties. They may also advise real estate investors or lenders and corporate real estate firms, and they may offer financing to their clients for income-producing properties. These large firms help REITs and other clients maximize profits and reduce the cost of property development and maintenance.

Here are some key duties in consulting firms:

• Advise clients on large purchases or developments.

• Research historical site data, prices and market conditions.

• Conduct market studies.

• Advise clients on property leasing best practices and laws.

3. Residential consulting

Residential consultants help individuals or investors purchase residential properties. Residential properties are single-family homes, condominiums, multifamily homes, mobile homes and apartments. A consultant might offer services to a new home buyer or an experienced real estate investor. The consultant provides expert advice on purchasing, leasing and maintaining these properties.

Here are some responsibilities of residential real estate consultants:

• Advise clients on home investment viability.

• Advise clients on current or previous market conditions and prices.

• Perform frequent market analyses.

• Help clients set purchase or investment goals.

4. Real estate investor consulting

Real estate investors are individuals or firms that want to invest capital into the real estate market by acquiring property or creating a real estate portfolio. A real estate investor consultant advises clients on various aspects of their purchase and portfolio options. The consultant helps ensure the client gets a fair price for any property they buy and determines whether it’s a sound investment based on the client’s individual goals.

Here are some key duties for a consultant in real estate investing:

• Advise clients on the financial impact of investments.

• Advise clients on investment viability.

• Advise clients on market conditions, historical price data and property value.

• Prepare forms and oversee the buying process.

Related: How To Get Your Real Estate License in 7 Steps

Where do real estate consultants work?

Real estate consultants can work in a variety of settings. Some work for large firms, while others work as independent contractors. Some banks hire real estate consultants to help investors make better decisions. Real estate agencies may also hire consultants to work with real estate agents in facilitating the buying process. The work environment for a real estate consultant typically includes office space, though they may conduct some outdoor work, such as traveling to properties and meeting with clients or other real estate professionals.

What’s the difference between a real estate consultant and a real estate agent?

While real estate agents and consultants have many similarities, there are some key differences between the roles. Here are some primary distinctions between real estate consultants and real estate agents’ duties:

• Purchasing: Consultants help clients prepare necessary forms and financial resources to begin the buying process, and they advise clients during the process. Real estate agents are the professionals who actually help facilitate the purchase.

• Advising: Consultants advise clients on purchases, financial resources, historical data and current market conditions or trends. Real estate agents typically don’t offer any advice and focus on facilitating the purchase process.

• Mediating: Consultants often serve as intermediaries between buyers and sellers. They advise both parties to help them reach their goals, whereas a real estate agent typically works with only their client and the opposing party’s agent or attorney.

• Finalizing: While both consultants and agents take part in the finalization of a purchase, only the agent can finalize a sale. Consultants typically provide advice until the sale is complete and oversee the process to ensure they meet client goals.