[DB]

No way is the work done by the average Realtor worth the 3 to 6% of the value of the house they demand. It is a racket.

[Rb ver. 2.0]

The full service brokers remind me of the RIAA and the discount guys are music download industry.

The selling model is changing in favor of discount brokers or at least reduced fees from all involved yet the Realtors want to fight it tooth and nail to preserve their "established" fees.

[Drango]

The real estate business model is a "cockamamie system . . . nonsensical and ridiculous."

6% charge for smoke and mirrors? No thanks.

[metesky]

Nation-wide MLS. Find a house anywhere in the U.S.

[Slip18]

Caveat emptor. You have to do some legwork to find out what is going on in a competitive industry.

[True-Stu]

OK, here's the real story. The current commission structure arose after WWII, when 6-7% of the selling price of the average home was reasonable given the price of homes and the actual services rendered. The Real estate industry has collusively maintained that 6% standard even though the average price of homes has sky-rocketed in the past 50 years. Now, the commisions are huge when compared to the actual time and services rendered. If someone tries to perform discount brokerage in my community, the current cadre of brokers "circle the wagons" and do everything possible to run them out of town. I'm an insider, and I've seen it happen several times.

It might be different in other parts of the country, but in my pond the extent of the services are: 1) Giving the homeowner a quasi market analysis to establish a listing price; 2) Listing the home in the MLS; 3) Running a single ad with picture in the local paper; 4) Having an "open house" showing; 5) Showing the home several times to prospective purchasers. The actual knowledge and expertice required to perform these "services" are minimal.

If you add up the actual costs of this, including the agents time and gas, you might generously come up with $1,000. With an average selling price of $100,000.00 (yeah, depressed market here), the homeowner is paying $6,000 for these services (many are paying $7,000 at a full 7%). In most cases, higher priced homes require and receive no greater services, so the disparity grows.

This "system" is way out of whack and is in desperate need of an adjustment.

[jetson]

Realtors are a bunch of sleaze balls. Like allot of the rest of the slimes in the US they break laws for greed. In Calif. real estate has been turning over like no body's business. Disclosure statements are not scrutinized, Illegals are obtaining property through sleazy agents and realtors are passing on the deals to friends and coworker's. It is going to be interesting to see if massive law suits pop up due to the housing market slowing down and buyers finding that what they bought is not up to snuff. Illegal additions and improvements ( built by allot of illegals )that are not up to code, encroachment on county property ( like stone walls and new additions ) and flood zones are not mentioned on many disclosure statements as required by law. This country is full of greedy people who think nothing of rules and laws.

[Koblenz]

I can't understand why the agent that lists a house gets so much.

When I sold my condo, I did FSBO. Sold it in a few weeks, got the same price as an indentical unit in the building sold through the MLS.

We sold our house through a discount broker: 3.5%. 2.5% went to the buyer's broker and 1% went to him. Our house was in Greenwich, CT.

He held one open house, and got us in the MLS. Our house sold in three weeks, and this was around Christmas, and the first weekend there was major snow so no one could come down our street and the second weekend was Christmas.

I understand why the buyer's broker gets 2.5%. But why should the seller's broker get much? We had committed to selling our house. He didn't need to convince us. He just put a lockbox on the house and had one open house for realtors.

After we sold the house, Al Gore came and stole the lockbox...

[mrmargaritaville]

FSBO is the only way to go. I've sold two homes FSBO-very successful and no blood suckers taking 5-6% off of the top for doing very little.