Once Again, Real Estate Professionals Go To War Against The Web

from the gotta-protect-those-margins dept

Last month, popular real estate site Zillow was enjoined from operating in Arizona because the site didn't have an appraiser's license. The action was a pretty bald-faced move by the state's real estate appraisers to keep a potentially disruptive service from messing with their business. It looks like another similarly disruptive real estate service, Redfin (which allows people to buy and sell houses at a fraction of a broker's typical fees), is under attack in Washington. Real estate brokers are upset about a Redfin-sponsored blog that allows non-brokers to post reviews of properties that appear in the area's Multiple Listing Service, a database that brokers use to get information on properties. Access to the database is limited to registered participants, which Redfin is. But one of the rules is that brokers are given the sole right to manage their marketing campaigns, and the brokers aren't happy that Redfin lets outsiders post housing reviews. The situation is a little different than the Zillow case in that it's the MLS that's threatening to revoke Redfin's access to the service rather than an official state agency. However, because the real estate industry operates as a state-blessed oligopoly, the MLS' threat basically carries the full force of the government. Because Redfin can't afford to lose its access to the database, the site has removed the offending blog. Chalk it up as another victory for professional organizations and their constant efforts to keep disruptive tech services at bay.

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  1. identicon
    Joshua, 18 May 2007 @ 6:07pm

    They fear the truth.

    As far as I can tell, the only reason anyone would be upset about public reviews of properties is if they have something to hide in the way they use marketing speak.

    Maybe they are just afraid that "This house is a rustic, single floor, fixer-upper with an open floor-plan" will be put more plainly by people without a financial stake as "This single floor house is made with outdated and inferior materials, requires heavy work to make it livable, and has no doors."

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