flatten real estate

If the world is flat (as some people claim), why are real estate agents still in business? As I am now selling my house in Detroit this is a pretty relevant question.

I have serious issues with paying 5-6% of my houses's ever diminishing value to a broker who isn't really going to do a lot of work. With the power of the Internet -especially sites like forsalebyowner.com - their prices should be lower. Right?

Apparently I forgot one of Malcolm Gladwell's lessons - these people are mavens. They know schools, areas, houses, construction, prices and anything else you need to know when selecting an area or house to live in. What's more they are perceived as independant or house neutral. So people come to them to buy, which obviously draws sellers.

Interestingly, even if you offer a buyers commission, and list on the MLS/ realtor.com with a flat fee service (and only pay 2.5% commission), it won't work. Little birds tell me that brokers will know how you have listed and will steer people away from your house because of it - all in the name of protecting the 6% racket.

Where's the FTC when you need it...

On a side note - advertising seems a total non-starter in this market. On the weeks that we've put an ad in the paper nothign has happened. Ads with pictures and beautiful (?) copy - same deal. Stick up a few signs in the road and invite people in - we got 8 to 10 people the first few weeks. So much for the power of mass communication.