I think there is some truth to complaint that the "traditional" real estate business model contributed to bidding wars over the past five years, hence the anger by some home buyers. As a buyer agent, I can honestly say that our buyers seldom beat an in-house offer at well-known dominate firms in the Boston area. My guess is that buyers were manipulated to drive prices up, and commissions were then shaved to insure in-house sales — enabling the brokerage to keep both sides of the commission.
Dual agency: Untold story of real estate bubble?
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