Entrepreneurship, innovation, and real estate were a part of Derek Eisenberg’s DNA. He grew up in a family of homebuilders and entered the real estate industry straight out of grad school. He began appraising in the 1990s and later joined several private property sale databases known as the Multiple Listing Service, or MLS, in Mid-Atlantic and New England states.
During the dot-com boom, Derek launched Continental Real Estate, a totally online brokerage offering flexible, cost-effective services. Customers could choose entire full-service packages or choose only the specific services they needed.
As Derek explained, “A traditional broker might only sell a Cadillac, whereas we sell a stripped-down Chevy with crank windows, no AC and only an AM radio and let customers add the options they want.”
Derek hoped to expand into all 50 states. Standing in the way, however, were several states’ requirements that brokers maintain physical offices within their borders—a completely antiquated condition as modern technology makes local offices unnecessary. These laws were mere protectionism, meant to protect in-state incumbents by discouraging market entry and blocking intrastate online services by out-of-state competitors. The result was fewer realtors and higher consumer prices. In West Virginia alone, Derek had to pay about $2,000 a year for an in-state presence, and the cost only compounded with each state he added to Continental’s reach.
West Virginia’s physical office requirement wasn’t just outdated. It was unconstitutional. It denied both Derek’s opportunity to do business and West Virginians’ opportunity to access innovative, cost-saving services.
Represented by Pacific Legal Foundation free of charge, Derek defended his right to earn a living in West Virginia, free of the government’s unjust economic protectionism.
He challenged a similar requirement in Nevada to contest its burdensome law that unfairly separated people from opportunity.
What’s At Stake?
- Subjecting entrepreneurs like Derek Eisenberg to burdensome conditions simply because of geographic location is discriminatory and denies opportunities for both entrepreneurs and consumers alike.
- Requiring businesses to have a brick-and-mortar office in order to operate is protectionism, pure and simple.
