Val Evans

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Rainmaker
3,070,584
Tony and Suzanne Marriott, Associate Brokers
Serving the Greater Phoenix and Scottsdale Metropolitan Area - Scottsdale, AZ
Haven Express @ Keller Williams Arizona Realty

I hear sounds of SoloPro in the background!  Hourly rate approach to see a transaction through from start to finish - an interesting concept worth exploring.  An unbundled option where different entities could conceivably be involved with different aspects of the transaction - 1 for showing, 1 for writing offers, 1 for transaction management (unless the Buyer does it themselves) - too many moving (and "unknown" parts) for my liking.  Average Listing Side Commission divided by Average number of hours involved in a listing transaction would be one approach.  To be more specific risks DOJ frowning... whether it's $$ or %% - still could be construed as "price fixing" discussion...

Nov 10, 2015 10:48 PM
Rainmaker
846,375
Marco Giancola
Beachfront Realty - Miami Beach, FL
Realtor (305)608-1922, Miami Beach Florida

I actually have done the math on this before about a decade ago and it was $350. With inflation I suppose that would work out to approx $500 p/h now.

Nov 10, 2015 07:12 PM
Rainmaker
924,040
Candice A. Donofrio
Next Wave RE Investments LLC Bullhead City AZ Commercial RE Broker - Fort Mohave, AZ
928-201-4BHC (4242) call/text

We learned how to figure this out in ABR class, and it's not hard - gross annual ÷ hours worked. Sometimes, I put the top paid attorneys in the world to shame. Others, minimum wage woulda been a raise. ;)

Nov 10, 2015 11:13 PM
Rainmaker
2,007,235
Lise Howe
Keller Williams Capital Properties - Washington, DC
Assoc. Broker in DC, MD, VA and attorney in DC

$1000 an hour.

Nov 10, 2015 07:49 PM
Rainmaker
2,488,872
Joe Petrowsky
Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709 - Manchester, CT
Your Mortgage Consultant for Life

Good morning Val. I have been asked this question before. My face to face time or direct phone time would be at $500 per hour.

Nov 10, 2015 04:16 PM
Rainmaker
1,659,405
Sandy Padula and Norm Padula, JD, GRI
HomeSmart Realty West - Carlsbad, CA
Presence, Persistence & Perseverance

I am in love with Lise Howe 's answer. If only we could see that happen!

Nov 10, 2015 11:51 PM
Rainmaker
5,164,598
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

This is an interesting question, and did several years ago keep track, and found out what I made per hour.   Have not had anyone ask to pay by the hour.

Nov 10, 2015 10:55 PM
Rainmaker
5,573,163
Barbara Todaro
RE/MAX Executive Realty - Retired - Franklin, MA
Previously Affiliated with The Todaro Team

I would determine what my income equates to on an hourly basis, and that's what I'd charge.... let's hope we never get to that point.... 

Nov 10, 2015 10:21 PM
Rainmaker
1,465,977
Michael Setunsky
Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

Val Evans An agent friend always said he would charge one dollar more than his plumber. I believe you would have to charge on an hourly consulting basis. It would involve calculating overhead, expenses, etc. Putting a dollar figure can only be determined on what the local economy would bear. Right now I don't believe the consumer is ready to pay for services on a consulting basis.

Nov 10, 2015 10:02 PM
Rainmaker
1,429,516
Raymond E. Camp
Ontario, NY
Licensed Real Estate Salesperson Greater Rochester

My thought would be in the $350 to $500 range and would love to be compensated this way on some deals.

Nov 10, 2015 09:50 PM
Rainmaker
1,157,535
FN LN
Toronto, ON

There are quite a few factors I take into account when determining hourly rates. 

Nov 10, 2015 09:35 PM
Rainmaker
908,513
Annette Lawrence , Palm Harbor, FL 727-420-4041
ReMax Realtec Group - Palm Harbor, FL
Making FLORIDA Real Estate EZ

As a part timer....$20 should do it for hiring someone with a second or third priority service.

Full timer, with real estate as the #1 priority will be worth considerably more.

I offer folks a pay-as-you-go option. No takers.

Over the course of a year what do you think the AVERAGE total hours (everyone in agents enterprise and affiliates) spend on each transaction will be?  Without knowing this number, or establishing it, the outcome of the question will be pure sensationalism.

Closed a deal from offer to closing in one week...just last week. Hourly I made a LOT of money. BUT, two weeks ago, closed on a property that took over a year, lots of time invested. In the end, this turned into a non-profitable effort. 

How will these issues be reconciled in the responses you will receive?

 

Nov 10, 2015 08:53 PM
Rainmaker
1,708,135
Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

$250 to $350 an hour.

Nov 10, 2015 08:33 PM
Rainmaker
4,334,938
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

At least $200/hour.

Nov 10, 2015 08:05 PM
Ambassador
1,598,436
John McCormack, CRS
Albuquerque Homes Realty - Albuquerque, NM
Honesty, Integrity, Results, Experienced. HIRE Me!

I've done the math before.  I was actually surprised. 

Nov 10, 2015 08:03 PM
Rainmaker
4,416,459
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Great question! Depending on the service offered it would be a wide range!

Nov 10, 2015 07:18 PM
Ambassador
5,613,317
Bob Crane
Woodland Management Service / Woodland Real Estate, EXP - Stevens Point, WI
Forestland Experts! 715-204-9671

For most of our services we already do charge an hourly rate of 50-75/hr depending on which of us is doing the work.

Nov 10, 2015 03:08 PM
Rainmaker
397,250
Jill Murty, Realtor - Orange County, CA
Movoto - Laguna Niguel, CA

It's a better deal for sellers to pay the agreed upon compensation.  Hourly would cost them more. 

Nov 10, 2015 01:58 PM
Rainmaker
664,259
Mark Don McInnes, Sandpoint-Idaho
Sandpoint Realty LLC - Sandpoint, ID
North Idaho Real Estate - 208-255.6227

What I would like to charge and what I get...there is a big spread.  lol  Have done a few classes where one of the activities have us divide our years income by approximated hours spent on RE.  Not a pretty site.  Mark

Nov 10, 2015 01:45 PM
Rainmaker
1,683,406
Larry Johnston
Broker, Friends & Neighbors Real Estate and Elkhart County Subdivisions, LLC - Elkhart, IN
Broker,Friends & Neighbors Real Estate, Elkhart,IN

I would have to do a Comparitive Market Analysis first.  How else would I come up with a fair answer? 

Nov 11, 2015 10:53 AM
Rainer
2,565
Patrick Lydon
Approval Manager - Miller Mortgage - Peabody, MA
If you have clients trying to buy a home with low

$300 per hour

Nov 11, 2015 05:20 AM
Rainmaker
838,712
Olga Simoncelli
Veritas Prime, LLC dba Veritas Prime Real Estate - New Fairfield, CT
CONSULTANT, Real Estate Services & Risk Management

I've had some deals, where I'd be too embarassed to calculate what I wound up earning per hour! Hard to say...  Don't you think our services are "priceless", in terms of protecting our clients and managing their risk?

Nov 11, 2015 03:48 AM
Rainmaker
611,619
David Gibson CNE, 719-304-4684 ~ Colorado Springs Relocation
Colorado Real Estate Advisers LLC - Colorado Springs, CO
Relocation, Luxury & Lifestyle residential

Val,
The hourly rate would depend on what I’m asked to do. Doing research on my computer during “off hours” is worth less than putting on the suit to show commercial property.

Nov 11, 2015 02:27 AM
Rainer
90,555
Val Evans
Scottsdale, AZ

According to NAR the median income for the average realtor is $45K per year. According to NAR the median hours worked is 40hrs. per week. Given those figures, the median hourly wage would equate to approx $24 per hour.

From the small sampling here on ActiveRain, the average hourly rate an agent said they make or would charge is $300 per hour. Given the NAR average hours, that would mean many of you here on ActiveRain either make, or could make $624K per year.

If many of you here are making, or could make $624K per year, that  amount would definitely put you in the top 1% of realtors nationwide.

So which would be better for your bottom line? Charging an hourly rate, or charging a commission?

 

Nov 11, 2015 02:22 AM
Rainmaker
212,705
Stefan Winter
Real Estate in IL & NV | Owner of Real Estate Web Tech | Daily Vlogger - Las Vegas, NV
Owner - Winter Group & Real Estate Web Tech

For me I would go between 600-1000 because of our service standards and everything we provide. Even an agent starting out I would think should charge at least 200-400.

Nov 11, 2015 02:02 AM
Ambassador
3,986,910
Debbie Reynolds, C21 Platinum Properties
Platinum Properties- (931)771-9070 - Clarksville, TN
The Dedicated Clarksville TN Realtor-(931)320-6730

Good question. I would charge something between $75-$200 per hour depending on what the level of service and expertise is required for the service rendered. Remember we pay all our expenses and have overhead that needs to be covered. Our average sale price is in the $160's so it is all relevant.

There are so many services we provide that we are not paid for that if a seller or buyer saw a per hour accounting, they might realize how vital we are to a transaction and those that are not serious would think before wasting out time.

Nov 11, 2015 12:30 AM
Rainer
67,209
Evelyn M Epperson
Coldwell Banker Residential Brokerage - Johns Creek, GA
A Tradition Of [Excellence, Trust & Service]

I calculated out all a Real Estate agent does we are worth $300.00 an hour.

Nov 10, 2015 11:56 PM