I have a theory and it has worked well for 10 years in Real Estate.
If an agent is willing to negotiate the commission away just to get the business then they are prepared to give in to a lower price on the property. You see, in business you need Gross profit to keep the doors open and when you "give that" away you are no longer a professional.
I believe our skills as a professional can bring in much more than a few thousand $$ saved if you are a master negotiator. Most agents are not. Whats the point of saving $2k when a good agent could lift the final price by $6k - $10k?
When did you last ask you solicitor for a discount and he gave it to you?
When did you ask your Doctor for a discount and he gave it to you?
When did you ask your Dentist for a discount and he gave it to you?
So why is it that you ask a Real Estate agent and he gives it away - because he does not value his service and neither does the Investor.
We negotiate tough for the Investor and have a repeat rate of business of 72%.
The worst clients I have had over 10 years in business is the Investor who wants to beat you down in commissions because they have no respect for good agents (and they are out there) and the buyer who wants to view properties on Sunday.
You only get what you pay for in this world and if the fees are discounted or an open listing, you will get what you pay for - a limited service.
Go Gecko and other agencies are like JetStar and Qantas. One is dearer but more realiable in service to the Investor.
Good agents also provide a service guarantee as we do.