16 January 2009
TRADITIONAL REAL ESTATE AGENTS STRIKE BACK AT ONLINE DISCOUNT BROKERAGES WITH A CONSUMER-CHOICE MODEL
Full-Service Real Estate Company RT Brokerage Services Launches reConsidered a Consumer-Choice Strategy Aimed at Internet Savvy and Cost-Conscious Buyers and Sellers.
SEATTLE--(MarketWire)--Jan 16, 2009--“No, not everyone saves the same amount. And yes, it’s still full-service real estate,” says RT Brokerage Services CEO Louis Herrera. “The difference is we start by giving our clients a choice of full-service models. If they are willing to eliminate our commission risk by paying hourly because they are 99.9% sure they will buy or sell, they can participate in our fee-for-service model where we track our time, and get paid semi-monthly. Depending on how much time they use, they can save $1,000s on their commission. And if they aren’t certain they will close a transaction, we will bear the commission risk and charge the market rate commission for our services.”
In offering consumers a choice for how they pay for their representation, it allows any traditional agent to present the real estate commission for what it is: a risk premium; shifting the discount burden from the agent to the buyer or seller. The commission has remained a fixed percentage of the sales price because it is a risk premium, not the promise of formulaic service. The risk in the traditional practice of real estate is that a client may walk away from representation for any reason, at any time, thereby yielding no return on the agent’s investment of time. The correlated premium, in a successful transaction, is the market rate commission charged by the agent to the buyer or seller for a guaranteed result under no-money down terms. “reConsidered™ leaves the commissions savings dilemma squarely in the consumer’s hands, not ours,” remarks Herrera.
While the commission model remains fundamentally sound, it can’t reward a consumer for a speedy transaction, especially for those who play an active role in their home search and work quickly to fulfill their contingencies. “They are the primary reason we launched reConsidered™,” says CEO Herrera. “Now we can simultaneously give them the recognition and savings they desire, and we won’t automatically lose them to the online discount brokerages.”
About RT Brokerage Services
Founded in 2007, RT Brokerage Services is the nation’s first full-service real estate company to provide consumers with commission- or hourly-based real estate transaction services. For more information, visit us at www.rtbrokerage.com
Contact:
| Louis Herrera |
| RT Brokerage Services, Inc. |
| +1 (206) 973-2587 |