I have to disagree with most of the folks here and have to agree with syracusa. I don't know how this present system evolved, but it is boardering on a scam. Realtors are necessary because they have access to the MLS -- a very valuable tool (can you say "monopoly?") to buy and sell. The internet is leveling the field somewhat but there is a long way to go.
The key is to find a reputable Realtor, with alot of experience. With the recent house boom that just passed, a lot of "realtors" were jumping on the band wagon with little experience and training, only interested in a sale, any sale. Here in CA where the typical home cost 1M+, 6% is alot of money.
There years ago, I realized that the housing market was in trouble when every other SAHM at my church was studying to be a part-time agent.
Anyone read Frekonomics? When realtors are selling a home, what they want is the "most reasonable price" for a relatively quick sale. When realtors sell their own homes, they want the "best price." An analysis of the Chicago area revealed that during the housing boom realtors had their personal homes on the market 20+ days longer and got a higher price. In other words, your interest and a realtors interest often times do NOT match.
Even in this down turn market, some realtors are out to lunch. A friend of mine just bought a home but had to go thru six months of painful search and 3 realtors before he found the house of his dreams.
The first agent basically said: "I have 10 homes for you to see on Saturday. On Sunday you can go back to 3-4 of the homes that you liked on Saturday, and on Monday, you can give an offer to one of them." This agent did not last too long.
When my friend found a good house, he wanted to offer 10% less than the asking (it had been on the market for over 1 year for 1.25M). The second agent tried to talk him out of it, "he won't go for it. Why don't you offer 20K less?" Are you kidding me! This is a BUYERS market! This second agent refused to take the offer to the seller because it was "too insulting." It turned out later that the seller was a realtor himself. In the state of CA, an agent can not refuse to communicate an offer. My friend fired the agent on the spot because she was acting more like the seller's agent (even thru they had a contract) than the buyers'
Don't get me wrong, every profession has it's bad apples -- and the above example is an extreme case. I have personally use two who are excellent and have my complete trust - but you have to do your homework and the agent must have excellent references. The problem is you don't have to have a college degree to get a realtor's license and the recent boom has swelled their ranks with part-time inexperienced agents. One reference I recently used was "Diamond Certified." Google it and click the link for your local area county, then click "real estate broker".
In this down market, an agent is a must for sellers. Not so critical for buyers, but I am using one now myself.
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