SOURCE: RT Brokerage Services, Inc.

RT Brokerage Services, Inc.

August 31, 2009 00:00 ET

Will Consumer-Choice Real Estate Agents™ End the Commission Debate?

RT Brokerage Services' Consumer-Choice Model Uses the Option of Hourly Rates to Stand Apart From Traditional and Online Discount Brokerages

SEATTLE, WA--(Marketwire - August 31, 2009) - "No matter what the state of the economy is, the real estate commission has always been a source of debate. Sellers think they pay too much, and agents say it barely covers their costs. Both sides are right, but for different reasons," says RT Brokerage Services CEO Louis Herrera. "It's what led us to our consumer-choice model."

"Of the homes I tour weekly, most are represented by 'full-service' agents, yet less than 10% of them ever follow-up with me for feedback. As a seller utilizing a full-service agent, shouldn't follow-up on all agent tours be standard practice for full-service?" asks Mr. Herrera.

"The real estate industry's historic focus on a code of ethics as the measure of quality service has made it easy for substandard agents to legitimize their service and make the 'full-service' claim without repercussions," says CEO Herrera. "The lack of prescribed standards for full-service explains why consumers constantly question the value of the real estate commission: they don't know what they should expect for their money. This is where consumer-choice real estate makes sense, and counteracts the pressure for top-notch agents to take anything less than the market-rate real estate commission for true full-service."

"Consumer-choice real estate agents™ provide buyers and sellers with a choice of full-service real estate models -- always supported by an itemized and fully priced scope of work. If our clients are willing to eliminate our commission risk by paying hourly because they are sure they will buy or sell, we recommend our fee-for-service, hourly model where we track our time, and get paid semi-monthly -- just like any other professional service," says Mr. Herrera. "Depending on how much time the seller or buyer uses, they can save $1,000s on their real estate commission. And if they aren't sure they will close a transaction and want no-obligations, we recommend the traditional model where we bear the commission risk in working with them, and charge the prevailing market rate commission. We leave our compensation in their hands: that's consumer choice."

About RT Brokerage Services

Founded in 2007, RT Brokerage Services is the pioneer in consumer-choice real estate. We provide consumers with commission- or hourly-based real estate transaction services. For more information, visit us at www.rtbrokerage.com.

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