My stepdaughter recently asked me how much I charged per hour.  I explained that Realtors get paid only when the deal closes.  She didn't see how that made good sense.

Her father owns an Auto Repair Business.  He charges by the hour.  Her aunt is an interior designer.  She charges by the hour.  Her uncle is an attorney.  He charges by the hour.  My stepdaughter is attending Cornell and she works part time at a move theater, getting paid by the hour. 

Getting paid, and sometimes not, after months of time, expense and effort didn't make much sense to her.  She is studying interior design at Cornell, following in her aunt's footsteps, and she too will charge by the hour.

If you were going to charge by the hour, what would your rate be?  And would that rate be negotiable?

 

8 Comments on What is your hourly rate?

JUL
04
2007

I think it is imperative that you logs hours, expense, and money earned to establish your value. Where this becomes valuable is it will let you know whether or not to accept deals based on time involved and also help you to stremline time.

Doug
12:38pm • #1
874,720 Points 154 Featured Posts Localism Sponsor Outside Blog Hit Router Attended Rain Camp Called Shot Master

Take you transactions for the previous year, divide that into your gross commission income. Then you know what you make if your looking for an hourly formula. Of course we work more hours that can't be accounted for and some transactions are smooth and some not so good. But, it will give you a good idea how much you are work per hour.

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12:38pm • #2
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Wow, intriguing!  I think some of our hours would be more expensive than others.  We, as agents, wear so many different hats.  I would think our tour of the town would be one rate, negotiating another, contract writing another...it would get to be crazy!
12:39pm • #3
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I would think my minumum would be $50 per hour. I most likely make more but that is what is stuck in my head. I would more than likely make less if I charged by the hour. That could change then i would change my mind. I know the Feds and state taxes get half of that.  
12:44pm • #4
325,091 Points 12 Featured Posts Outside Blog

Kelley,

Charging by the hour is very common. Since the market is so slow in most of the country, for us lenders and agents to go that route would make financial sense. When the market is normal, or better, then the straight commission might be better.

12:54pm • #5
147,500 Points 6 Featured Posts Outside Blog

This is funny that you wrote this.  Just the other day I was talking with my girlfriend about the fact that I charge my time out at $125.00/hr when I do expert witness testimony.  I've always have had that figure in my head as being just compensation for what I do.  When Kathy and I were talking, I did the math and figured out what my time was worth on a gross basis (gross income/number of hours worked) and I'm way low on what I should be charging...I never would have thought that!  Too bad my net isn't as good as my gross! ;-)

 

Bob Mitchell

ValueList Real Estate Services, Inc. 
12:55pm • #6
272,720 Points 3 Featured Posts Outside Blog

I know what I would charge, but I wanted to hear from other people who have walked a few miles in my shoes.  I expect it to vary from market to market, but this is something that I have been giving some serious thought.  I forget where I saw it today where someone not in the real estate industry thought it was okay to charge 6% commission when housing prices were lower, but not now that they are higher.  What's up with that?

Everything is higher.  Movies are higher.  Car prices are higher.  Food is higher.  Doctor's and Attorney's rates are higher.  And, yes, home prices are higher.  Even for Realtors.  We don't get them for free and we don't get special rates on our loans.  We are mere mortals just like everyone else.  Why shouldn't our income increase with everyone else's and the expenses?
1:01pm • #7
213,239 Points 5 Featured Posts

It should be a sliding scale depending on the P.I.A. factor of the customer. LOL

We would have to charge about $500 per hour for those really special clients.
1:40pm • #8


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Kelley Eling (Marin County, CA Real Estate)

San Rafael, CA

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Frank Howard Allen Realtors ~ Luxury Portfolio

Address: Marin County, CA, 94901

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