5️⃣Centralized Control

Centralized systems dominate traditional real estate transactions by involving banks, government registries, and large real estate firms to manage and authenticate deals. In the U.S. alone, nearly 87% of homebuyers use a real estate agent or broker, showing the heavy reliance on intermediaries in the process.

These entities exert significant control over transactions, often adding layers of bureaucracy and driving up costs. Here are a few examples of major centralized controllers in the real estate industry:

🏘️ Zillow Group: As one of the largest real estate marketplaces, Zillow has been criticized for its influence over property listings and market data. By controlling access to a vast amount of real estate information, Zillow can influence market trends and consumer decisions, giving it significant power in the industry.

🏘️ National Association of Realtors (NAR): The NAR is a powerful trade organization that represents real estate agents and brokers in the U.S. It has been accused of anti-competitive practices, particularly in maintaining the traditional commission structure. The NAR’s policies can make it difficult for alternative business models to gain traction, reinforcing the dominance of established agents and brokers.

According to a study by Deloitte, nearly 30% of real estate professionals see the lack of transparency in property data as a critical issue. This controlled access to information creates barriers for buyers and sellers, who must depend on intermediaries to obtain essential data, ultimately making the process less efficient and more costly 🚨