From my perspective, the better informed a consumer at the start of a home buying or selling process, the more efficient and productive the process. And the more informed a consumer, the better chance they have of knowing what is feasible and what they want. This allows me as an agent to better assist them achieve their goals. Anyone can unlock a door and say this is the living room. Less know the fundamental elements of value in residential real estate generally and then as it relates to a specific geographic area (e.g. a Town, neighborhood, street). Less have spent the time to understand how value changes in different parts of a town or street and why. Less know the inventory because they are in the market every day. Less know or spend the time to figure out what is happening with the adjacent plot or local school that may impact future property values in the area. Less have been in thousands of homes in the town and can provide fresh and relevant sales comps based on familiarity with the sale comp properties rather than simple data similarities derived from the an online database. Less track inventory by price ranges to gauge the overhang and plot bid strategies based on this. Less have insight into the general construction and design features and their impact on value and the ability of a family to enjoy a property. Less can direct a Buyer to additional resources to get one familiar with the area, properties, schools, taxes, services and other issues relevant to a home buyer and home owner.

I could go on, but basically a more transparent and efficient residential real estate market benefits all involved (although the entrenched Brokerage companies may not agree for a while). They reduces costs for Sellers and Buyers and Agents. It drives out agents unable to provide value-added service to property consumers and demands more from those remaining. Agents that are intimately familiar with the local market, proficient project managers and professional can save a buyer or seller a significant amount of money and stress in numerous ways. For example, in the market I work, it is not uncommon to see that an out of town agent has assisted a Buyer purchase a property and paid way too much. Those are the breaks of knowing the market generally. General knowledge, data driven basic comps get one only so far. Some may be satisfied with 85%; others may prefer better results.

— They’re already there – they just won’t admit it. I always love these types of discussions, the weak agents chiming in trying to defend an income figure that has been falling for 2 years.

The days of showing 3 homes on a Sunday and having a contract by Wednesday are over, waaay over .. now agents have to “earn” a living, not just be order takers.

Most buyers and sellers have already been doing their homework. They know how long the home has been on the market, they know it’s been relisted, (not “just listed”) buyers and sellers know the tax base, they can study every house in a 3 square mile area and tell the agent how many times the Poodle dog down the street goes out – basically doing 75% of the agents work. — what today’s agent/Realtor won’t do, is just admit it.

You have savvy agents from Florida to Minnesota that are using flat fee’s, and heavily discounted commissions – why not.? business is off 50%. You have listing agents using flat fee’s to get the business, and the smart ones, are using a big discounted commission to keep the business ..

How many buyers or sellers are going to pay a $15,000 commission to buy or sell a $250,000 home when most of the work has been done by the consumer.? — and in today’s market, most agents certainly can’t use the phrase: “all my knowledge counts for something” anymore, not when 70% of the Realtors in today’s market are living in a home with a pile of negative equity –or– getting ready to lose one via a foreclosure …. so much for knowledge.

Agents and Realtors are the shadow and the direct reflection of today’s car dealers … 9 years ago car dealers would claim they would never take less than a 10% commission, then came the internet … 9 years later, they will battle for a 2% commission on a $15,000 truck — so goes today’s realtor.

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I work 7 days a week — rarely take Saturdays and holidays off because that’s when I show property to clients who can’t take off during the normal work week, or Sundays off because that’s when I hold open houses. During the day, it’s research, calling for appointments, etc. The good realtors never have an idle moment.

Many of my clients are internet savvy, but I provide additional information othat they are not able to get on the internet information providers. If they want to subscribe to RealtyTrac to find out which homes are in distress, that’s fine. But more often than not, I have to explain that just because they’re on RealtyTrac (or Trulia and other sites who draw from it), that doesn’t mean the house is for sale.

6% commission? Geez, that’s almost a thing of the past. And please remember that this is split between agencies who split it with the realtors. The average realtor probably gets 2%, and from that, he pays for the cost of advertising, lock boxes, etc. That doesn’t include the cost of time devoted to arranging for and staying at the property during inspections, cleaning, staging. Some realtors even do our own staging if the property needs it. Recently a widow moved out for medical reasons. She couldn’t afford to have the hardwood floors refinished, or pay for cleaning. I paid for these services myself because unless they’re done, the house showed poorly. I also staged it. And no…I’m not getting 6%. More like 1% after expenses.

Yes, if the owner wants to sell himself, there are all kinds of resources. Hope the owner is prepared to give up his own free time to make himself available everytime someone wants to see the property. And whatever the seller does, please do your due diligence and disclose, disclose, disclose pertinent information and facts about your property.

Just how much is YOUR time worth? Can you afford not to be paid for the time you spend working for your clients? Driving around showing property is a small piece of the work we do. We spend hundreds of hours working, but our efforts don’t necessarily result in a sale.

Until I became a realtor, like you I had no appreciation for the work they do (because I didn’t see what they were doing for me whenever I bought or sold a house — and that’s quite a few properties). I once tried to do a FSBO and spent a lot of time and money advertising; but ended up hiring a realtor who sold my house in a much shorter period of time.

And when I moved out of town, my realtor took care of the property, checked it frequently to make sure my house and yard looked presentable, and that the property was secure. She called me frequently with an update. I had peace of mind knowing I had someone I could rely on.

Guess people will always find something to complain about regardless of the profession. Government workers? Overpaid. Teachers? Not effective. Care home personnel? Not caring enough. Restaurant servers? Surly. Police officers? Brutal. Doctors? Mis-diagnose. Bloggers? Blowhards.

And the 6%? I actually kinda got a good chuckle outta that one because I would LOVE to make 6%! And anyway, the “sellers” in this market, where 80% of the listings are distressed (short sale or REOs), the bank is paying for the commission. I have many times cut my commission for friends to as low as I could to protect their equity position and allow them to walk away with the most money possible while keeping the deal together.

I’m all for revolutionizing the industry, but here’s the biggest problem that I see that needs to be addressed…when selling Real Estate…you need representation. It really is like going into court and representing yourself. I have seen so many deals that sellers and buyers would not have been able to keep together if they were dealing directly with one another…it’s harder then you might think…when it’s your home…it’s personal. And yet…it’s not personal…it’s business. But when a buyer comes in with a laundry list of repairs they want to make to your beautiful home…it’s hard to not be offended. Keeping the deal together is very underated I believe.

Anyway, this is not a market for the fainthearted…it’s hard. It’s hard work. Deals fall apart over and over despite best efforts. And the agents closing 6 deals on average a year? Really? I had 4 times that many fall apart last year and the year before and I estimate from personal experience and exposure to the community that most agents are closing between 0 – 2 deals a year with an average paycheck in this market of about $4,000 take home (which all taxes and expenses need to be taken out of).

I could go on and on…but I’ll wrap it up with this…I have not met a FSBO yet that didn’t overprice their home. And what I always get a kick out of is the Real Esate agents (well…they have their license and think they know what their doing ) are the worst offenders…why? Cause their home is special. And in this market where your competition is banks…how are you going to sell your property again? As you pointed out…buyers have access to information…believe me…they know their stuff now…do you really think they’re going to want to deal with a seller directly? A buyer doesn’t pay a dime of a Realtor’s commission…why would they forgoe representation to purchase an overpriced property? And if they did…guess what they’re going to ask for…hmmm…could it be 6% reduction in your price? And when that roof that leaks suddenly appears that you “forgot” to disclose (which, by the way, is mandatory in California)…who’s going to be drug into court…the “6% agent” or the “I’m not paying 6% but am going to take 10% less than an agent would net me Seller?” And if you think I’m just being “one of those agents” by saying that…look into it…this is a lawsuit happy enviornment right now…folks are very unhappy that their homes are worth less than what they paid for them. That’s why Realtors carry E&O insurance…errors and ommissions…kinda like malpractice insurance for doctors…do FSBOs carry this? (cringing here)

On behalf of the entire profession I apologize to everyone who’s had a terrible experience…I know they exist and I’m not trying to make light of that…but I have met a lot of wonderful, caring, hard working professionals that care dearly for their clients well being and do everything legally possible to protect them and get them the most for their money.