Buying & Selling: Realtors Reel In Redfin Reviews

I've had occasion in recent months to write positive news about the dissassembling of the MLS-Realtor monopoly, which is why it was so depressing to find out that the Seattle-area MLS was successful in shutting down the Redfin reader review blog:

Redfin Chief Executive Glenn Kelman said he had no choice but to comply, noting that the listing service had threatened to shut off its daily feed of for-sale listings. "Access to listing data is our lifeblood and we just can't afford to mess around," Kelman said. "We have gone back and forth with the Northwest Multiple Listing Service and according to their rules, you can't advertise another broker's listing. We argued that it was in no way an advertisement, it was really a review." Kelman said he was disappointed by the disciplinary action, noting that Redfin was trying to disseminate different perspectives on homes from what one might receive from a real estate agent.

Some notes on the decision from the Redfin blog itself:

The Seattle and Bay Area real estate markets have now lost a voice that on the whole was not only good for everyday people, but for the real estate industry itself. Consumers want candor about homes they can buy, and if as brokers we refuse to provide it, we will lose the authoritative, trusted position we've cherished for decades. As MLS rules force our sites to act as listing brochures, other websites will develop a monopoly on the truth, and we will pay those websites for traffic we should have had in the first place. We are not only giving away our brain and our heart, but our wallets too...The question at the center of almost every skirmish in the modernization of real estate is who controls the information.

Being able to get honest perspectives on a home's condition is essential for any buyer. Realtors rely on coded language ("Cozy first-time fixer-upper" = "one room piece of crap that only a first-time buyer could afford"), cheesy stagings, and rushed viewings to keep the buyer off-balance and unaware of the home's potential defects. A service like this could have potentially provided major benefits to Redfin users, and it's a shame to see it get squashed so that realtors can continue to control the information flow.

Word to Techdirt.

Posted at May 20, 2007 04:29 PM

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I've had occasion in recent months to write positive news about the dissassembling of the MLS-Realtor monopoly, which is why it was so depressing to find out that the Seattle-area MLS was successful in shutting down the Redfin reader review blog: Redfin Chief Executive Glenn Kelman said he had no choice but to comply, noting that the listing service had threatened to shut off its daily feed of for-sale listings. "Access to listing data is our lifeblood and we just can't afford to mess around," Kelman said. "We have gone back and forth with the Northwest Multiple Listing Service and according to their rules, you can't advertise another broker's listing. We argued that it was in no way an advertisement, it was really a review." Kelman said he was disappointed by the disciplinary action, noting that Redfin was trying to disseminate different perspectives on homes from what one might receive from a real estate agent. Some notes on the decision from the Redfin blog itself: The Seattle and Bay Area real estate markets have now lost a voice that on the whole was not only good for everyday people, but for the real estate industry itself. Consumers want candor about homes they can buy, and if as brokers we refuse to provide it, we will lose the authoritative, trusted position we've cherished for decades. As MLS rules force our sites to act as listing brochures, other websites will develop a monopoly on the truth, and we will pay those websites for traffic we should have had in the first place. We are not only giving away our brain and our heart, but our wallets too...The question at the center of almost every skirmish in the modernization of real estate is who controls the information. Being able to get honest perspectives on a home's condition is essential for any buyer. Realtors rely on coded language ("Cozy first-time fixer-upper" = "one room piece of crap that only a first-time buyer could afford"), cheesy stagings, and rushed viewings to keep the buyer off-balance and unaware of the home's potential defects. A service like this could have potentially provided major benefits to Redfin users, and it's a shame to see it get squashed so that realtors can continue to control the information flow. Word to Techdirt.