BrokerageIndustry News

Timing the real estate transaction

Pondering the future of pay-as-you-go

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By SERGIO MOSQUEDA George Ayling, founder and real estate broker of Select A Fee Real Estate System in Chicago, said he was skeptical when he first considered a fee-for-service business model. "I just felt it wasn't going to work," he said. That was in 1995, before he and his real estate agents spent about 1 1/2 years examining the workload involved in everything from the initial client contact to closing. At the time, "I came up with 12 to 13 hours" (of work) per transaction, Ayling said. The next question he considered: "How much should I charge per hour?" According to Katherine Pancak, professor in residence of finance and real estate at the University of Connecticut at Stamford, said many agents may be asking themselves the same question in the years ahead. In the future, consumers "may hire some combination of real estate professionals, each to assist in a specific part of the transaction process," Pancak suggests, and it may becom...