If someone was to approach you and ask to work for them on an hourly rate - and pay you cash at the end of the day ... what would you charge?

Would you have different rates for showing property vs. negotiations, etc.?

I have done buyer representation on an hourly rate up to a fixed amount for a client that wanted help buying a particular piece of property. It was many years ago for friend and a flexible time line that I could work it in among my other real estate business tasks. Would probably have to charge more now in a similar situation.

The same as with BPO fees, I will decline to discuss specific amounts openly on the forum. I don't want anyone to get the idea that it is a solicitation to match fees (that could be considered price fixing).

Let me list some possible ranges:

a) $25-50
b) $50-75
c) $75-100

I don't get paid at the END of the day. Depends on the problem being encountered; but I take a retainer of at least $250.00 and get paid from the beginning. If they won't pay a retainer, then they will probably argue about paying AFTER the fact too. If we don't like one another, that is discovered during the first couple days; or first few hours of devoted activity.

It should also depend on how much liability comes with the task.

Yes it should... so what does that make your hourly rate?

would they be billed for phone calls as well? i know that i have had clients who like to call and ask lots of what if questions.

Everybody runs there business differently.

I have seen broker over the years you post everything from refferal fees,to NAR theories,discounters,pay for service,etc.

The posts are defintely interesting.

I am just plain old vanilla type of person. I offer them my best service and have one set fee I charge to cover my expenses.It keeps things simple and streamlined and I close sales.

The ones that don't want to conform or use me it's no skin off my back as I do very well working my plan.

You can't be everything to everyone in this business.Luckily you don't have to.If you break it down into per hour I have made thousands of dollars an hour before so I don't like the ala cart stuff.

A hourly consultation fee of $125 p/hr seems realistic to me.
Billing fees for RE services, depending on individuals qualifications and services are from $55 to $200 p/hr. where I am.

That's what I use. It separates those who are serious from those who just want to "pick your brain" for free.

When I take a retainer, I'm also quite conscious that they're expecting a return on that investment, and those first couple of hours have to show that a "real value" was provided. I make sure they are getting their money's worth. And because we're both keeping track for that short period of time, I usually have no argument "selling" more of my Consultative Services at the same rate; provided that it is needed.

These people know that I'm not trying to make a living off these hourly fees; but that they are receiving the benefit "all" of my experience in this Business and this Territory.

For ER . . . . of course Phone Calls are billable . . . . but I certainly don't include any time spent on idle Chit Chat about Politics or the Weather; which has to be chalked up to being a "social lubricant". There's nothing precise about what I do; and when people don't trust you in these dinky calculations or respect what you are doing for them, it's best to move on any way.

If it's based on free market economics then your hourly rate should be a combination of your skill, experience, and reputation. Some people's advice could quite easily be classed as "priceless" and they could charge whatever the market would bear. While others wouldn't be worth minimum wage. So it all depends (like to many things) doesn't it?

One other thing I should have mentioned about "Clients on Retainer". They always get priority treatment. That's not written . . . . it's just the way I handle them. I will drop just about anything else I'm doing to take a call or perform a task for someone who is on retainer; and do so voluntarily.

This has never been abused. I have never received calls in the middle of the night from these Retainer People . . . . or at 5:30 AM as I have from some Customers; nor any on Sundays or Holidays. It just seems that they treat the "Service" more respectfully when they are paying for it.

I've always performed these same activities "For Free" on a contingency basis and in the hope that some associated Transaction would someday Close and I'd maybe receive a Commission . . . . but seldom heard so much as a "Thank You" from the beneficiaries. But that's the way the Real Estate Business has been structured: to provide service to the greatest number for "free" using the compensation that has been (or might be) received from the "few".

Very interesting, Dale. I've given a lot of advice away for free over the years and "enjoyed" the same experience. A "thank you" is a rare privilege and about the best you can expect. That's why I started a blog so that all of the free advice I give away serves a greater purpose, namely, to drive traffic which can be monetized and to build my credibility and stature on the net.

Billable Hours takes be back to a time when all my time was on billable hours plus disbursements and hereby submit my recolledtion for your consideration.

Client memories, when presented with their "Statement of Accounts" can suddenly fade or become very selective in their recollection of events and therefore a copy of your “Fee Schedule” should be made readily available to all potential clients and subsequently acknowledged in the clients retainer agreement.

Fee Schedules:
There are a wide variety of fees, but are generally broken down into two predominant types of fees as follows:

1. Contingency Fees which are normally dependant upon and subsequently payable on the pre-determined fulfilment and success of the retainer.

2. Non-contingent Fees that are payable for the time expended, irregardless of the success or failure of the retainer.


Expenses / Disbursements Normally relate to the out-of-pocket expenses incurred on behalf of the client by their retained professional. Expenses are specifically mentioned in all retainer agreements as being either inclusive or exclusive of the fees described therein. Clients are further advised that in the event of unforeseen developments requiring additional disbursements, a interim retainer will be necessary.

Non-Contingent fees may be either Straight Billable Hours, Capped Billable Hours, or Block (Flat) Fees

Straight billable Hours exclusive of disbursements: This fee arrangement is generally used where the duration and complexity of the matter is not clear and a standard retainer of $$$$$ is payable in advance.

Capped Billable Hours exclusive of disbursements: This fee arrangement is based on the estimated time required to fulfill the retainer in what would normally be viewed as a straight forward matter.
e.g. the hourly rate X the pre-determined required number of hours and a standard retainer of $$$$$ is payable in advance.

Block (Flat) Fee: There two types of flat fee for service arrangement , one being where the disbursements, if any, are included in the quoted fee and generally of a nature that is limited in scope and for which a flat fee can be readily applied such as preparation and/or review of such documents as rental agreements, leases, comparative market analysis, a formal opinion of value, offer to purchase, etc. with a standard retainer of $ full $ payment in advance.

The other type of flat fee arrangement is where all disbursements as may be incurred are in addition to the flat fee for service quoted.

Attendance Fees:
There are also attendance fees in relation to administration tribunals and/or court attendance and pre-hearing or pre-trial conferences with client's counsel or others and the professional’s fees in relation to his or her first attendance and each subsequent attendance in which the professional may be required to give testimony and their per diem minimum to be established, together with consideration for the professional’s required travel time, mileage, parking fees, and if out-of-town their (return) travel expenses, meals and lodgings.

The Hourly Rate: The establishment of an hourly rate must be competitive with your immediate competition, unless you can clearly distinguish yourself from the competition and illustrate that there viable reasons that you should be paid more than your competitors.

Important Notice: This information is provided as basic educational information by the author and is not a substitute for the advice of an expert and/or the advice of a lawyer. There is NO representation as to legality, accuracy, correctness of the herein information and the reader is strongly urged to consult a lawyer in the relevant jurisdiction to ensure accuracy before acting on this information

I would charge $3,500,000/hour.