Louis Herrera

Today's online real estate consumers want three things: more information, professional expertise that helps them synthesize the information, and a means to leverage that information into some form of valued savings. We've left the “more information” aspect of the equation to the Zillows’ of the world, and focused exclusively on the delivery of professional expertise that simultaneously pencils out for the agent and passes on real savings to the consumer. We built our brokerage model with generation X and Y consumers in mind. Unlike their parents, these consumers have no recollection of chauffeured home tours, nor do they share the same loyalties to service providers, especially to what they view as a ubiquitous, forms-driven transaction. Instead, they look to the dollar value of the service, and how it price-compares across the web. This humbling reality led us to hourly rates. It also meant moving away from the industry's anecdotal method of accounting to justify the 6% commission. It meant creating a professional agreement, a detailed scope of work, and published hourly rates. Now our clients have a choice. If they want traditional representation where we bear the commission risk and they pay nothing unless a transaction closes, we collect the full commission. If they want hourly representation where they eliminate our commission risk and can leverage their knowledge to achieve savings, they can pay $235/hour for senior-level agent representation. While our approach is simple, we do believe that our time-accountable real estate transactions model has the makings to revolutionize the real estate industry especially as we emerge from this economic downturn. Hourly rates help to logically reframe the 6% commission debate, deliver real consumer choice, and ultimately create a professional rate card for agent representation. Louis Herrera CEO / Designated Broker RT Brokerage Services, Inc. www.rtbrokerage.com

There is only one way to discount on a real estate commission: require the consumer to pay hourly on a semi-monthly basis. (In our hourly model we charge between $235-$317 for real estate services. In our commission model, we charge 3%.) It is the only business solution that makes sense. Hourly rates aren't entirely new. At some point, most experienced real estate agents have closed a transaction on an hourly basis as a courtesy to a past client. What they haven't done is advertised this hourly service. Where we are making a difference in the marketplace is we've incorporated a formal hourly transactions model into our regular full-service offerings. It allows the committed and knowledgeable consumer to save thousands on their commissions, and simultaneously puts money in our pocket on a monthly basis like any other professional provider. Everyone is happy. While the Internet has changed the way consumers interact with real estate information, it will never replace the need for full-service representation. Consumers have neither the time nor desire to learn the nuances of closing a real estate transaction. Like filing a tax return, everyone can do it, but as the schedules get complicated, no one wants to make a mistake so they hire an expert. The goal is to get the most out of a return. The same is true in selling and buying real estate. Louis Herrera, CEO RT Brokerage Services, Inc. www.rtbrokerage.com

As a former urban planner, I was immediately drawn to your article by the headline. After reading your article, I couldn’t disagree with you more. In fact, I am actually a little surprised that as an architect you could draw such a conclusion. Parking standards did not initially come from urban planners, they came from commercial bankers as lending requirements. Parking standards have always been, and will also be a pro-forma line item that commercial lenders use to protect their vested interest in a project. No lender in their right mind is going to lend “Joe Developer” the funds to build a commercial development that has no parking. Loaning money on the hopes that alternative transportation options are on the horizon is simply too risky for any lender. The only way to un-codify today’s parking standards is to plan and build real transit options that give consumers a choice to run their errands in an efficient and timely manner. I’ll bet if you ask any city/urban planner, you will be sure to get an earful on the alternative transportation modes they envision—and it won’t be around asphalt. Louis Herrera CEO/Designated Broker (former urban planner) RT Brokerage Services, Inc. www.rtbrokerage.com