As are most of the ridiculously inflated costs involved in purchasing real estate.
They can mostly all be avoided, or significantly reduced, if you know how to go about it. However, that requires purchasing certain properties, arranging compatible financing and doing your own leg work. The vast majority of buyers aren't willing to go to the effort or have the slightest bit of knowledge as to how to go about that. So the scams continue. People are making good money off the public ignorance and laziness.
Real estate agent fees, appraisal costs, title insurance, closing costs, financing fees and even miscellaneous small costs and fees can all be avoided or significantly reduced. It is possible but takes some education and effort.