Interesting how the division works in other markets. In the UK people generally do their own negotiation, the tours are arranged by calling the seller's agent, the surveys are arranged to the standards of the mortgage company (and in Scotland, rolled into the "home report" at the seller's expense). Once you've selected a property you hire a conveyancer who handles title search and almost all the paperwork.
It's slightly different in Scotland further still. Here almost all estate agency is conducted by solicitors (lawyers). I've just bought a flat in Edinburgh and for a flat rate I had an experienced solicitor advising me on the process, giving me advice on each property I was considering - such as what to look for as warning signs when you're buying a 130 year old flat.
Because they're lawyers they are regulated (which is why gazumping doesn't happen nearly as much in Scotland) so standards of client servicing are much higher.
The moral hazard is removed by them not taking a fee on the buy side, they're aiming on you continuing to use their services for all future legal matters.
