[mediaman]

I think people should generally have professional help in buying or selling a house. But the rates that brokers charge is out-of-step with the help they provide.

For example, in a $600,000 house in an urban area, the two brokers earn $36,000. But I just bought a house without a broker, and hired a real estate lawyer. Not only was the lawyer much more versed in legal details of the transaction, but he wound up charging me $500. Yes, he didn't drive out and hold my hand, but he was extremely knowledgeable and knew exactly what to look out for in all steps of the transaction.

In my experience, whenever the question of broker commissions comes up, people come out to defend the expert advice of the real estate agent and argue that people shouldn't "go it alone" because the transaction is complex. And, generally, it's true that people probably should not go it alone on an expensive transaction such as buying or selling a home. But the agent's advice is often mediocre, and they still lack the detailed understanding of real estate transaction rules and law that a real estate lawyer provides. So why pay the agent thirty times as much as someone with more experience and formalized, specialized education in the area? The only remaining reason is "marketing", which is the service that is greatly devalued in the age of online brokers.