Collapse of Information Arbitrage Core Business Model
#1For most of real estate agency's history, agents monetized an information asymmetry: they had MLS access, neighborhood pricing knowledge, and relationship networks that buyers and sellers lacked. Zillow's 2006 launch began eroding this asymmetry, and by 2024 AI-powered AVMs from Zillow, CoreLogic, HouseCanary, and Quantarium have reduced on-market property valuation error to under 3%, on par with or better than average agent CMAs on standard suburban properties. Public MLS access via Realtor.com, Zillow, and Redfin now delivers near real-time listing data to any consumer, eliminating the exclusive access premium agents historically charged for.