Realtors are indeed market experts (not product experts). Commission pay incentivizes them to close deals quickly, not to maximize sale price. Yes they can educate first time buyers that they cannot simultaneously get the best location, condition of the house, and price. Good realtors will ask their customer which two (or sometimes one) are their real priority and realistically match them to available listings. If you're moving into an area they can provide some local information although they legally cannot comment on schools or crime. If you've done this before, realtors mainly just serve as gatekeepers to a cartel and literally unlock houses for you to view.

I would disagree. Theres enough information readily available to be able to see what relative home values are, where the good school districts are, etc.

The only reason I’ve ever used a realtor is because I don’t have the time to deal with the contract/legal side of everything. Most would be better served by hiring an attorney and title company if your state allows.

But there is an adverse selection problem. Some realtors are experts in the market. Buyers or sellers have few ways to identify them accurately. Most of those ways amount to they themselves having good knowledge of the market.

It's the same problem as picking active fund managers.

The decade of zirp between like 2013 and 2021 created a lot of shitty realtors because anyone with a pulse could sell or buy a house with ease. The true value of realtors is in bad economic conditions where serious work is needed to market and negotiate.