Include hourly rate in buyer-broker agreement
Letter to the Editor
By Inman News, Friday, June 3, 2011.Re: 'My first 3-digit commission check' (June 2)
Dear Editor:
How much is your time worth? Perhaps it's time to include an hourly rate in our 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 or the BAC (commission paid to the buyer's broker). If the hourly rate calculation is greater than the BAC, 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.
Jon Cohen
Real estate broker
Portland, Ore.
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Submitted by Bruce Hahn on June 3, 2011 - 3:25pm.
An hourly compensation model could be good for homeowners as well, so long as there was am advance meeting of the minds regarding how the agents time would be spent, and for what.