BrokerageIndustry News

A pay-as-you-go real estate model

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Editor's note: This month, Inman News is focusing coverage on real estate commissions and alternative compensation models. Join the discussion: Click here to share your views and insight with Inman News readers. Seattle-based real estate company RT Brokerage Services Inc. has rolled out hourly fees for its real estate services as an alternative to its traditional commission-based compensation structure. Real estate brokerages typically charge a commission rate that is based on a percentage of the home's sale price to sell a home. And this total commission tends to be in the range of 4 percent to 7 percent, though this can vary. The listing broker typically shares a portion of that commission with another broker that brought the buyer into the sale. In this way, prospective buyers do not typically pay the brokerage company directly for services rendered. Agents and brokers divide their share of the commission for the buy "side" of the deal and the sell "side."...