The reduced price models dont work because contrary to what many want to beleive, RE is not all that profitable a business. Very few brokerages make any money from RE sales alone and their profit depends upon ancillary service revenue (title, escrow, mortage etc.) as well as squeezing what they can out of agents who are already struggling to earn a living.
The thuggery issue is an analogy to what happened in the past when RE was traded between principals. Samrter, richer folks abused the middle and lower classes. The infamous Irvine Family amassed much of thier land holding by sending out thugs to beat and/or kill landowners. Admittedly it is an extreme example but that is the way things used to be done for those who wish a return to the past.
Hourly fees work for drs, lawyers and accountants because use them for a specific need. When you have a broken leg, marriage and/or tax return you need to get it fixed. RE on the other hand is something people investigate over a long time and more often than not dont act on their desires/dreams. Simply put, it is more of a want than a need.
As for a fair hourly fee I dont know. For me it would be at least $50/hour for basic time and more for more detailed tsks which require greater expertise. I guess the best way would be to come up with a fair annual salary and divide that by 52 weeks and 40 hours a week. It wont work because most people dont actually buy from the agents they work with. They would spend alot of money for nothing.
