The Internet is redefining how customers approach real estate, increasing competition and putting pressure on real estate agents who have had exclusive access to such information and last year made $63 billion in commissions.

Redfin, which launched its online real estate brokerage in February, lets consumers scan aerial photos, view past sales data and sell or buy homes on the Web. In a typical home sale, the seller pays a 6 percent commission; 3 percent goes to the listing agent and 3 percent to the buyer's agent. Redfin keeps 1 percent of its share of the buyer's commission and refunds 2 percent to its clients.

The Internet is making it easier for home buyers and sellers to see what properties are selling for and even what they're worth, information long considered the expertise of real estate agents.

Online real estate sites like Seattle-based Zillow.com and Kirkland-based Homepages.com let customers view aerial photos of homes, access recent sales of similar homes and get school and crime data. After spotting their dream home on Redfin, the Wolfs drove out to visit. Redfin Chief Executive Glenn Kelman noted that most sellers who hire a listing agent expect them to show houses. Taking suggestions from Wolf and other clients, Redfin recently added a $250 service for a home tour with an agent if clients want.

Riss said full-service companies like Coldwell offer an edge, particularly in hot real estate markets like Seattle, where homes sell quickly, often with multiple offers.

ZipRealty's homebuyers do extensive online research, but are connected to full-service agents when they're ready. Redfin is still a small player. By comparison, Coldwell's 1,600 real estate agents in the Northwest complete about 1,400 real estate deals a month.

By M. Sese
http://realestatepress.org