SOURCE: RT Brokerage Services, Inc.

RT Brokerage Services, Inc.

September 30, 2009 17:17 ET

Can RT Brokerage Services' Consumer-Choice Real Estate Model Beat the Online Discount Brokerages on Price and Service?

For Consumers Who Know What They Want and Who Are Willing to Compensate Their Agent on an Hourly Basis, Their Savings Will Almost Always Beat the Discount Brokerages

SEATTLE, WA--(Marketwire - September 30, 2009) - For years everyone has read or heard someone complain about the high costs of real estate agent commissions, but are consumers really prepared to pay the actual cost of an agent's services? That is exactly the bet that RT Brokerage Services CEO Louis Herrera has made and expects will give traditional, full-service agents a competitive price and service advantage over the online discount brokerages.

RT Brokerage Services' consumer-choice model is based on full-service real estate representation like any traditional full-service brokerage, but with a twist. The twist is the consumer decides how he or she will compensate their agent through either a market-rate commission or on an hourly basis.

"In the commission based (traditional) model, where we take on the commission risk that the transaction may fail, we charge the market-rate real estate commission based on a fixed percentage of the sale price. A client only pays if a transaction closes," says Mr. Herrera.

The reason the commission model has worked well for so many consumers over the years is it lets consumers engage an agent, whether buying or selling, with no out-of-pocket costs or reimbursement of the agent's time and expenses if a sale never closes. "Where the industry has gone astray is in not presenting the real estate commission for what it is: a risk premium, not a measure of service," remarks CEO Herrera.

If consumers truly want a commission charge based on a measure of service, the most efficient way to do that is to charge hourly. "In our hourly based (fee-for-service) model, the consumer eliminates our commission risk by paying for services as the transaction progresses -- like any other professional service provider. Committed and knowledgeable consumers are rewarded with real and measurable savings, not an arbitrary discount percentage," say Mr. Herrera. "Our time-accountable model provides real savings that only a professional, feet-on-the-ground, full-service agent can deliver."

About RT Brokerage Services

Founded in 2007, RT Brokerage Services is the pioneer in consumer-choice real estate. In consumer-choice real estate, the consumer decides how they compensate their agent for full-service representation: commission or hourly. Learn more, visit www.rtbrokerage.com.

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