[justherefortart]

Because purchasing a home is a rare event and closing is scary to most people. Miles of documentation to sign, things that buyers and sellers aren't familiar with.

Essentially it's just ignorance. I built and sold homes with my family for a decade, we had a simple 2 page purchase agreement with a reasonable amount for earnest money (small for spec homes, 20%+ for customs).

Most the paperwork and nonsense is from the buyer's mortgage company.

You don't need a real estate agent for any of this. People just don't know it yet. When someone brought their own agent, my best price always went up by their 3% as well. I never understood how people would find our homes, then have an agent bring them in. I guess you don't mind paying 9-15k for literally nothing.

I always explained my best price too (asking if they were being represented). Here's my price w/o agent, here's price +3% with agent. Had a couple of people try to get the non agent price after we'd negotiated. Never folded once on that fee, just like closing isn't my expense, it's yours and your bank's ripoff. (Notice they transfer mortgages for a few hundred between themselves after you close, the real cost.)