Real estate marketplace inefficient, but works

Web 'ignites new thinking around old commission model'

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Every morning in the tiny fishing village of Pichidangui on the central coast of Chile, local residents line up and await the arrival of the morning catch. The boats dock; the fish are cleaned, sold and wrapped in newspaper. Within an hour, the small crowd dissipates.

The value chain in Pichidangui is simple–fishermen distribute fish to residents–an efficient and cost-effective marketplace with no middlemen or intermediary costs. Far more complex, the U.S. real estate value chain is also more expensive–10 percent or so of every sale.