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Realtors are abandoning a listing ship

REAL ESTATE

The housing crunch and Internet are shrinking the ranks of agents.

May 25, 2009|Peter Y. Hong

Six months later, the new owners had moved out because of the noise from the dogs -- and implied they would file a lawsuit, Darling said. She reminded them about the disclosure, and the buyers backed off.

For some home buyers, however, that kind of expertise is outweighed by what they say is a fundamental conflict of interest: The higher the home price, the higher the commission. That gives Realtors little incentive to negotiate a rock-bottom price, they say.


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Real estate agents counter that argument, saying they have to find the middle ground between what the buyer will pay and what the seller will accept -- and if they don't succeed, they'll be out of business.

Cyd Gold, 55, isn't persuaded.

Gold said that when she was house-hunting in 2000, her agent didn't come up with anything she really wanted. When she found a place she liked, Gold said, the agent discouraged her from pursuing the house -- probably because, Gold maintained, the agent wanted her to buy a house that would yield a richer commission.

A few months ago, Gold bought her current home in Eagle Rock after finding it on the Redfin website. She was able to get the house for $20,000 less than she had planned because she listened to the advice of the Redfin agent.

"She had no personal interest in getting a higher price," said Gold, whose mother was a real estate agent.

Not everyone, however, is likely to be as savvy as Gold when it comes to buying a home, said Michael Darling, a Pasadena agent who is the son of Jackie Darling.

"I've sold a couple of houses to buyers represented by Redfin," Darling said. "They're very analytical, left-brained people.

"Some people still just want to trust somebody."

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peter.hong@latimes.com

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