a few articles to read
cnn money asks why are you paying 6%?, and has a cautionary tale about becoming a real estate professional. give them both a look. and here is an article by jon stossel that i found that is entertaining. here’s a snip:
Limited-service “discount” brokers also threaten brokers’ 6 percent commissions. They offer services at lower rates, like a flat fee of $250 to host a two-hour open house or $499 to review the contract paperwork.
So traditional brokers have won “minimum service” laws in many states that force discount brokers to offer more services — and thereby force consumers to pay higher fees.
When I confronted David Lereah, chief economist for the National Association of Realtors, about that, he said, “Not everyone is providing the adequate amount of services to protect the consumer.”
Excuse me, but if I want a Realtor to protect my interests, I’ll hire one. I didn’t hire them to protect me from concluding I don’t need their services. If I think I’m better off selling my home with less help than they want to sell me, that should be my choice.