Paying my agent per hour and no commission

[Darius Niz]

I have a question... I'm an out of state investor and I find properties through the MLS and Loopnet. Thus, I ask my agents to go out and take a video walkthrough of the property so I can decide on whether to make an offer (I do about 20% of the time). Since I've done this so many times before, I basically deliver all the docs ready-made to my agent; there's not a lot for them to do other than open the door.

I'm thinking about asking my next agent to work by the hour instead of on commission and credit the balance of the commission at close. I would pay generously by the hour and it's good money whether I close zero or four deals... it's the same model for how my real estate attorney and accountant get paid; why should my agent be different?

Do you think my approach is reasonable?

[Brent Coombs]

@Darius Niz, if it's true that "my fee ends up paying my agent 500/hr when you factor in how much time they are putting into my deal", then perhaps they may agree with you, if you: pay them $500/hr instead!

My guess is your little scheme will never fly with GOOD Agents - and you don't want the other kind anyway! My 2c...