Realtor 1.0

When we were looking at that last batch of houses, a realtor asked us the standard questions, and I gave him my business card. He wanted to know our range and I said we might go up to a certain amount. He said he would do a search for us (like we can't do that for ourselves.) I didn't think much of it.

On Wednesday he sent me an e-mail with links to two houses, both of them 50K above the amount we said we'd go up to. I wrote him back saying basically that I was discouraged that all he could show us was two houses above our price range and it makes me think maybe we can't buy something after all (OK maybe I was messing with him a little.)

So, he writes back saying basically that it's never been a better time to buy, interest rates are low, and prices might start zooming up again. Gee, haven't heard that one in a while.

Pretty typical interaction with a realtor. What struck me about it this time, is that it reminds me of this blog I've been reading: Umair Haque. Aside from the fact that brooding, irascible economists with foreign names are in right now, his description of various business models reminds me that realtors are a very "1.0" business model. As Haque might say, they are all about extracting value from consumers, not offering value. Their business model is based around the MLS and having exclusive access to it. I really hope that Haque is right, that business models about creating artificial scarcity, extracting value and protecting the interests of gatekeepers are on their way out. Nowhere in my interaction with this realtor does he offer me any value. Not even to simply state, even if it were a lie, that he'd like to help me get the best house for my money. He does something that I can do better myself - an internet search for a house. He tries to bump me up into another price range, then resorts to fear (prices might go up) to motivate me.

In Haque's most recent post he talks about Microsoft/Fox's new business proposition to take content off Google and put it on Bing. It's a great example of the concept. Where in the Microsoft/Fox plan is there anything to do with doing something better or competing based on creating a better product? More telling, like the realtor, it doesn't even occur to them that they should offer this or that anyone would want it.