What value does a real estate agent add?

Tips and Deals Forums Buying Your Home What value does a real estate agent add?

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      I know this question will draw all kinds of fire but, frankly, I am having a hard time justifying in my mind paying out *5 or 6 percent in commissions to buy a house. *
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      I have purchased three properties in my life. *The first two I found myself and my buyer’s agents contributed very little value to the transaction. *The third one was different. *I bought a condo in Canada and my buyer’s agent found the property before it went into MLS. *I got it as a good price (not a great bargain but certainly a fair price). *Also, in Canada real estate commissions are about half (or less) of what they are in the US on properties selling for $500,000 or more. *
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      The problem is the way these transactions are structured. *Buyers are deluded into thinking they are not paying any of the commission so they view the services of a buyer’s agent as being free to them. *Sure, why not use one. *
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      Sellers have the freedom to market their own property but most likely the potential buyers will show up with agents who then want a commission from the seller. *Also, since most buyers think they are getting a free ride they will likely rely on their agents to show them properties and I suspect that these agents will tend to boycott FSBO properties. *
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      So how do we break this cartel? *By law anyone can list their property on MLS so that’s not an issue. *As a buyer I would be inclined to approach a seller’s agent and condition my offer on their willingness to refund to me 2 percent of their commission. *If that didn’t work I would go with Redfin or Zip Realty and settle for the smaller rebate. *
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      Seems to me that if more sellers went FSBO and more buyers did their own searches, real estate commissions would drop substantially in order to be more in line with the value added. *
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      Comments?

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