Cost Guide
Real estate is typically the largest financial transaction most individuals and many businesses will make — which means the cost of bad advice, or no advice, is measured in tens or hundreds of thousands of dollars. Yet the structure of real estate advisory is unusual: the majority of agents and advisors are compensated through transaction commissions, which creates an incentive to close deals rather than optimize outcomes. Independent real estate advisory — paid by the hour or by the session, not by the commission — is a different product that serves a different need: objective analysis of whether a deal is right, at what price, and under what terms. The market for real estate expertise also spans a wide range of sub-specialties: residential buyer and seller representation, investment property analysis, commercial real estate, development feasibility, 1031 exchange strategy, portfolio review, and market timing advice. Each of these requires different expertise and is priced differently. For most buyers, sellers, and investors, the highest-value advisory moment is before a major commitment — before you put in the offer, before you sign the lease, before you execute the 1031 exchange — when options are still open and outcomes can still be shaped.
Hourly rate
$100–$300/hr
For investment strategy, market analysis, and deal evaluation sessions
Per session
$150–$500
For a focused 60–90 minute consultation or portfolio review
Transaction advisory
0.5–2% of deal value
For full advisory on a specific acquisition or disposition
The largest real estate professional body in the US — verify agent membership and credentials.
Official US Government guidance on the home buying process, including working with advisors.
Budget
$75–$150/hr
Typical for: Licensed agents or newer investors offering advisory alongside transaction work
Best for: First-time buyer questions, neighborhood comparisons, basic rental property math
Mid-range
$150–$250/hr
Typical for: Experienced investors or advisors with 10+ years of market-specific knowledge
Best for: Investment property underwriting, market timing analysis, 1031 exchange strategy, portfolio review
Premium
$250–$300+/hr
Typical for: Former institutional investors, commercial real estate veterans, or advisors in premium markets
Best for: Commercial deal structuring, development feasibility, multi-family acquisition strategy, fund-level advice
Cap Rate (Capitalization Rate)
Cap rate (capitalization rate) is a real estate metric that measures a property's annual net operating income as a percentage of its purchase price. It is one of the most widely used tools for comparing investment properties and estimating potential returns.
Loan-to-Value Ratio (LTV)
Loan-to-value (LTV) is the ratio of a loan amount to the appraised value of the asset securing it. LTV = Loan Amount ÷ Property Value × 100. Lenders use LTV to assess risk: the lower the LTV, the more equity the borrower has and the lower the lender's risk. Most commercial real estate lenders cap LTV at 65–80%; residential at 80–97%.
Due Diligence
Due diligence is the process of thoroughly investigating a person, company, or asset before entering into a significant transaction or agreement. It is most commonly associated with mergers and acquisitions, investments, and real estate transactions.
1031 Exchange
A 1031 exchange (named after IRS Code Section 1031) allows real estate investors to defer capital gains taxes when selling an investment property by reinvesting the proceeds into a like-kind replacement property. Properly executed, it can defer taxes indefinitely.