Featured: Top of Home Page

Online house shopping

It's taken a long time, but real estate agents are finally feeling the pressure of disintermediation, which the Internet was supposed to bring to every kind of business by allowing producers and consumers, buyers and sellers to search for and communicate with each other without middlemen -- or rather with low-cost websites rather than agents as middlemen. Real estate agents "earn" their money -- a commission that never varies with economic conditions -- mainly by keeping a tight lid on the list of available houses in a region. The commission then is a kind of extortion, and real-estate agentry a kind of institutionalized corruption, with several palms that need greasing simply because they've positioned themselves as gatekeepers. (Also, as Levitt and Dubner explained in Freakonomics, agents don't really have your best interests in mind -- they have a greater incentive to complete a sale quickly than to get you the best price for the home you want to buy or sell.) Recently the Justice Department has chipped away at this unfair business practice, and online real estate services have begun to let buyers find available properties for themselves and gauge a fair price for them by seeing maps with values of nearby and comparable houses. This is the same process that happened with airline tickets; travel agents became superfluous, so they disappeared as we all learned to fend for ourselves with out computer searches in the arcane world of airfare pricing.

But real esate agents don't plan to go down without a fight. A New York Times article this past Sunday about discount brokers reports, "In many cities, real estate agents have tried to restrict access to M.L.S. information or to limit its use on the database. Some have asked state legislatures to pass laws forcing brokers to offer certain levels of service, a move that Mr. Kelman [who runs an online discount broker, Redfin] sees as intended to squeeze out discount brokers. “It’s a thousand tiny shackles on innovation,” he said." The article also notes how some agents are so threatened by buyers who eschew traditional agents, they have apparently refused to show houses to them. "Matt Bell, general manager of sales at RealNetworks in Seattle, said that 'when the listing agent wouldn’t show me the house, that’s when I knew Redfin was on to something.' He added: 'If agents don’t like it, then it must be better for consumers.' " Real estate agents have responded by basically saying that Redfin's clients are crybabies. " 'Someone may be trying to manufacture controversy, even going so far as to bait other real estate practitioners, invite war stories on their blog and whine to Congress and to newspaper reporters that they’re being treated unfairly,' said Marlow Harris, a Seattle agent with Coldwell Banker Bain Associates." Somehow I don't think this approach will win agents much sympathy. But it is in step with the intimidation tactics that have sustained them this far -- their business model is premised on keeping customers ignorant and frightened about procedures that aren't all that mysterious once you remove the sophistry and stonewalling the agents introduce. (And it is not as if agents are helping clients avoid mistakes -- they certainly weren't discouraging marginal borrowers from going in over their heads with option ARM mortgages they didn't understand to buy houses they shouldn't even have been considering.)

But even if they succeed in preventing people from seeing properties first-hand, customers may be able to turn to the Internet for virtual tours, complete with comments from other would-be buyers who looked it over. This Wall Street Journal story details how user reviews à la Amazon are starting to crop up alongside real estate listings online. Real estate agents, predictably, are upset, because this constitutes yet another threat to their monopoly on market information. They argue that such information is polluted with lies and motivated by "spite." But it seems more likely the commenters are motivated by their feeling of betrayal in having been misled by an agent, or having to hear an afternoon's worth of doubletalk. Sure, a buyer could use a host of sock-puppets to mount a whisper campaign against a certain property in efforts to drive the price down or to discourage other buyers from investigating further. But it is just as likely these sites will be innundated with agents posing as customers spouting empty real-estate gibberish, balancing it out. In fact it's merely a matter of time before the flood of agent doublespeak hits these sites -- just as record companies used to flood Kazaa with dummy files to thwart filesharers.

But no matter what agents try, their days seem numbered. A more efficient, if less personal, real estate market will emerge, if only because consumers have been sold on the idea that doing house research themselves is more convenient (much like bagging one's own groceries is alleged to be) and it's experienced as a kind of freedom rather than an imposed burden. As this trend gains momentum, expect to see it reported as the democratization of the real-estate business.





'We're Not Here to Entertain' Is Not Here to Break the Cycle of Punk's Failures

Even as it irritates me, Kevin Mattson's We're Not Here to Entertain is worth reading because it has so much direct relevance to American punks operating today.


Uncensored 'Native Son' (1951) Is True to Richard Wright's Work

Compared to the two film versions of Native Son in more recent times, the 1951 version more acutely captures the race-driven existential dread at the heart of Richard Wright's masterwork.


3 Pairs of Boots Celebrate Wandering on "Everywhere I Go" (premiere)

3 Pairs of Boots are releasing Long Rider in January 2021. The record demonstrates the pair's unmistakable chemistry and honing of their Americana-driven sound, as evidenced by the single, "Everywhere I Go".


'World War 3 Illustrated #51: The World We Are Fighting For'

World War 3 Illustrated #51 displays an eclectic range of artists united in their call to save democracy from rising fascism.


Tiphanie Doucet's "You and I" Is an Exercise in Pastoral Poignancy (premiere)

French singer-songwriter Tiphanie Doucet gives a glimpse of her upcoming EP, Painted Blue, via the sublimely sentimental ode, "You and I".


PM Picks Playlist 3: WEIRDO, Psychobuildings, Lili Pistorius

PopMatters Picks Playlist features the electropop of WEIRDO, Brooklyn chillwavers Psychobuildings, the clever alt-pop of Lili Pistorius, visceral post-punk from Sapphire Blues, Team Solo's ska-pop confection, and dubby beats from Ink Project.

By the Book

The Story of Life in 10 1/2 Species (excerpt)

If an alien visitor were to collect ten souvenir life forms to represent life on earth, which would they be? This excerpt of Marianne Taylor's The Story of Life in 10 and a Half Species explores in text and photos the tiny but powerful earthling, the virus.

Marianne Taylor

Exploitation Shenanigans 'Test Tube Babies' and 'Guilty Parents' Contend with the Aftermath

As with so many of these movies about daughters who go astray, Test Tube Babies blames the uptight mothers who never told them about S-E-X. Meanwhile, Guilty Parents exploits poor impulse control and chorus girls showing their underwear.


Deftones Pull a Late-Career Rabbit Out of a Hat with 'Ohms'

Twenty years removed from Deftones' debut album, the iconic alt-metal outfit gel more than ever and discover their poise on Ohms.


Arcade Fire's Will Butler Personalizes History on 'Generations'

Arcade Fire's Will Butler creates bouncy, infectious rhythms and covers them with socially responsible, cerebral lyrics about American life past and present on Generations.


What 'O Brother, Where Art Thou?' Gets Right (and Wrong) About America

Telling the tale of the cyclops through the lens of high and low culture, in O'Brother, Where Art Thou? the Coens hammer home a fatalistic criticism about the ways that commerce, violence, and cosmetic Christianity prevail in American society .


Thelonious Monk's Recently Unearthed 'Palo Alto' Is a Stellar Posthumous Live Set

With a backstory as exhilarating as the music itself, a Thelonious Monk concert recorded at a California high school in 1968 is a rare treat for jazz fans.


Jonnine's 'Blue Hills' Is an Intimate Collection of Half-Awake Pop Songs

What sets experimental pop's Jonnine apart on Blue Hills is her attention to detail, her poetic lyricism, and the indelibly personal touch her sound bears.


Renegade Connection's Gary Asquith Indulges in Creative Tension

From Renegade Soundwave to Renegade Connection, electronic legend Gary Asquith talks about how he continues to produce infectiously innovative music.


A Certain Ratio Return with a Message of Hope on 'ACR Loco'

Inspired by 2019's career-spanning box set, legendary Manchester post-punkers A Certain Ratio return with their first new album in 12 years, ACR Loco.


Oscar Hijuelos' 'Mambo Kings Play the Songs of Love' Dances On

Oscar Hijuelos' dizzyingly ambitious foot-tapping family epic, Mambo Kings Play the Songs of Love, opened the door for Latinx writers to tell their stories in all their richness.


PM Picks Playlist 2: Bamboo Smoke, LIA ICES, SOUNDQ

PopMatters Picks Playlist features the electropop of Bamboo Smoke, LIA ICES' stunning dream folk, Polish producer SOUNDQ, the indie pop of Pylon Heights, a timely message from Exit Kid, and Natalie McCool's latest alt-pop banger.


'Lost Girls and Love Hotels' and Finding Comfort in Sadness

William Olsson's Lost Girls and Love Hotels finds optimism in its message that life tears us apart and puts us back together again differently.

Collapse Expand Reviews

Collapse Expand Features

PM Picks
Collapse Expand Pm Picks

© 1999-2020 PopMatters.com. All rights reserved.
PopMatters is wholly independent, women-owned and operated.