Ancillary Services

When you're dealing with real estate transactions, you often find yourself up against terms you don't know the meaning to. Research shows that when up against a word they don't know or a concept they don't understand, 95% of the population will just fake it and move on. Did you question those numbers? That just proves it!

The problem with that is, of course, that you might not really know what you are getting into if you lack a clear understanding of the terms. Many real estate agents and brokers use these terms so often, they have forgotten the meanings are not as well known to their clients.

One such term is "ancillary". It's a term that is being floated about more and more often in the new world of real estate, and one that most people don't really understand. Let's give you a framework.

Ancillary means an action in a secondary context, or a supporting role. The person offering ancillary services does so not as the most knowledgeable person on the case, but a person who does understand some of the general ground rules.

Ancillary services are often a part of the full service package offered by traditional agents and their brokerages in real estate. They are also commonly part of the menu programs of the modern real estate agent. Obviously, these are services which occur as support as you buy property, but what exactly are those services?

Well, those would be any services in which the agent has expertise, but which go beyond the actual transaction of a title from one party to another. They include, but are not limited to:

Mortgage consulting Market valuations for the purpose of determining insurance Settlements on disputes involving taxes and other fees

All of these services can be extremely valuable to the seller or the buyer, provided that the agent has proven expertise in the field. They can also be valuable additions for the brokerage or the agent, as ancillary services can provide a very large extra revenue stream on top of actual real estate transactions. That's why you will see most brokerages offering a menu program include ancillary services with high price tags; they are still more cost efficient than going to individual experts.