The fee varies by state, but generally is 6-7%. It's split by the buying and selling agent.
You definitely need an agent to sell a house. Because no other agents will show your house if you do a fsbo (for sale by owner). In fact, agents will actively discourage their customers from buying your house, even if they offer to pay the agent their half of the commission.
If you are buying a house. The main thing is they can open the doors of other agent listed houses and show them to you.
They have a tightly closed network, and it's held in place by laws. The NRA (national association of realtors) has a strong political lobby.
Here is a good run down of the situation on 60 minutes. It's old (2007 before bust) but not much has changed.
You definitely need an agent to sell a house. Because no other agents will show your house if you do a fsbo (for sale by owner). In fact, agents will actively discourage their customers from buying your house, even if they offer to pay the agent their half of the commission.
If you are buying a house. The main thing is they can open the doors of other agent listed houses and show them to you.
They have a tightly closed network, and it's held in place by laws. The NRA (national association of realtors) has a strong political lobby.
Here is a good run down of the situation on 60 minutes. It's old (2007 before bust) but not much has changed.
http://www.cbsnews.com/news/chipping-away-at-realtors-six-pe...