[jlbnjmn]

Yup. Sold our house in January using Redfin. Best realtor we've dealt with and saved 2%.

Also watch out for realtors saying you need upgrades and recommending contractors. They likely are getting a kickback, and by boosting the listing price their commission goes up. You end up with the same proceeds, IF it sells as fast, and you had to front the upgrades.

The incentive structure for realtors is whack. At a minimum, the commissions could be tiered instead of continuous.

[poulsbohemian]

I don't know your location, I am not a lawyer, this is not legal advice, YMMV, but: In most locales, a kickback like you are describing is illegal and can be reported to your state's real estate commission. If you believe that your agent is acting in bad faith, you should at least find a different agent if not report them.

In many cases, smart upgrades can yield significant returns. Not all agents who recommend upgrades are trying to con you, many are providing market-aware prudent advise to help you maximize your return.

As an agent, I think it is good that tech and other competitive forces are entering the field. That said, commissions often get pointed to as a "problem." Here's the deal: If you believe your house will sell within a range of say, +/- $20K, then the agent's job is to try to get you to the top of that range. 2% in my market, for an average house works out to about $6K. If I can get you an extra $10K+ that you wouldn't have gotten by FSBO or similar, that's where I'm adding value as an agent and that's why commissions exist.

[jlbnjmn]

Commissions are a major reason why the market lacks liquidity. When someone buys a house, they're immediately 6% below market value, just from commissions.

To each their own.

Redfin was a fantastic experience for us. The advice was rational and unbiased (they get paid off of reviews, not commissions, if I recall my research correctly).

And the house sold, which is wonderful.

Also, kickbacks may be illegal, but that doesn't mean they're uncommon or that the laws would be enforced.