[jhulla]

Good for Redfin. Disruption in any business that charges 6% transaction fees is great.

Having said that, real estate transactions are complex beasts with many moving parts. A lot of this process can be scripted and templated. But there are many situations where it cannot. Buyers and sellers are under immense stress as they face very large financial and legal decisions. They don't understand the process, the terminology, the legal and financial consequences, etc. There are local regulations and conventions that differ from region to region. E.g: Check out the differences in who pays fees across counties: http://chicagotitletransfertax.com/

Good agents absolutely earn their fees when uncertainty and complexity arise. I suspect Redfin is seeking to carve out the part of the market that comprises straight-forward, template driven transactions.

[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.

[hammock]

>E.g: Check out the differences in who pays fees across counties: http://chicagotitletransfertax.com/

The complexities can be and already are structured in a table format? Seems like a job perfectly suited for a computer, not a human.

[jhulla]

Sometimes transactions stick at the strangest places. For example, a buyer balks at paying a final $500 fee allotted to him because he has hit his financial stress limit - potentially killing the entire transaction.

Good agents are not just facilitating the transaction, but also acting as friends/confidants/therapists for buyers&sellers - helping them make responsible decisions. Good agents also come up with creative solutions to complete transactions - this pops up often in resolving inspection contingencies. Say there is some leakage discovered underneath a bathroom sink with some cabinetry damage. The buyer is getting cold feet. What do you do?

[notyourwork]

I guess my question is why is it so complex? What complexities arise that realtor's can help with.