Two Seattle websites are at the forefront of dramatic change in the real estate industry. The first is Redfin, and the site’s basic premise is that the internet has reduced the need for realtors to connect buyers with sellers, and as a result, you should only pay a fraction of the commission. And the second is Zillow, which uses historical MLS and tax record data to come with with “zestimates” of a home’s value. And the backlash has begun. For Redfin, some realtors are refusing to sell homes to buyers who are using Redfin. And Zillow has been hit with a complaint filed with the FTC that alleges the site is knowingly deceiving the public by presenting its estimates as accurate (despite the fact that Zillow makes it clear on the site that its estimates are just starting points for professional valuations.) As information becomes democratized through technology, such opposition is a natural by-product of traditionalists protecting their turf. In my humble opinion, the industry is ripe for change.
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