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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.

The system isn't out of whack, you're choice of agent is bad.

Now explain this to me again. 6% was good in WWII but not now?

Exactly!

First home I sold I got reamed by the real estate agent. Swore I would never sell another home. But I did, and there were no problems using a broker.