Hourly rate: The solution to low real estate commission?
Letter to the Editor
How much is your time worth? Perhaps it’s time to include an hourly rate in the buyer broker agreement. It’s not too hard to keep track of the time you spend for a particular client performing transaction-related real estate services (not marketing, prospecting, networking, or reading articles about real estate compensation).
The agreement can provide that the client shall pay the greater of the hourly rate calculation and the commission paid to the buyer’s broker. If the hourly rate calculation is greater than the (commission paid to the buyer’s broker), then the buyer will bring cash to closing.
The trick, of course, is recording your time. It’s not too much trouble for a lawyer, but may take some getting used to for Realtors.
Real estate broker