A New Way to Charge For Real Estate Services

Hourly real estate services are changing the real estate profession as we know it. You are not alone if you find yourself shaking your head at the amount of commission your real estate broker is charging to sell your home. The traditional model for real estate commission has been a calculation of five to six percent of the sale price split between selling and buying brokers at closing. It can appear at times as though the broker has put in very little actual work time for that huge paycheck. Well, hourly real estate has changed all that.
Hourly (time accountable) real estate services are based on a fee for services basis; you agree to pay, and the broker agrees to charge, only for the type and amount of services used and the level of personnel assigned to your transaction. A senior level broker always leads the team. You and the brokerage agree on hourly rates and the amount of time expected to see your transaction through and memorialize your understanding with a scope of work agreement executed at the beginning of your working relationship; any additional work is approved by the client ahead of time. Hourly rates are based upon the level of personnel and type of services required by your transaction and the billing plan you select.
Hourly real estate seller services are divided into prelisting and postlisting services. Prelisting services concentrate on developing a marketing plan geared toward directing as much traffic to your door as possible. Services may include a professional grade marketing brochure highlighting the features of your home, featured website placement, video tours of home and neighborhood and email alerts to other brokers and agencies. Postlisting services are geared toward execution of the personalized marketing plan and assisting the client from purchase and sale contract negotiation to closing, recording and release of proceeds. Brokers follow up on contingency fulfillment and iron out any wrinkles along the way. Prelisting and postlisting services also include feedback tracking and results analysis to ascertain the effectiveness of the marketing plan.
Hourly real estate buyer services are similarly split, into preoffer and postoffer services. Preoffer services concentrate on assisting the buyer with home listing analysis, validation of an asking price and offer preparation and negotiation. Postoffer services concentrate on post agreement contingency followup, closing, document recording and possession. Brokers also step in when necessary to represent the buyers interests and smooth over any preclosing difficulties that may arise, including contract renegotiation.