Hey Cary!
We used bank transfers a couple of times in 2007 & 2009 and each time the cost was $50+ and the process at the bank tedious and (compared to Paypal) seemed rife with potential for screw-ups. I hope to never do that again. I now will only reserve a place if they either take deposit via credit card, Paypal, or will accept cash on arrival.
We use Homeaway frequently, VRBO occasionally, and this year for the first time, Airbnb. Airbnb has now been co-opted by traditional apartment/cottage owners as another way of listing their properties. Just click on "entire property" (or something like that) to filter out single rooms or couches from the list.
Just last month we found a cottage we wanted on the west coast of Ireland via Homeaway. We messaged the owner who gave us the details including the deposit via bank transfer. We then responded that we wanted to rent the property but would prefer another method of deposit "because bank transfers are very expensive in the USA" (apparently they are not so expensive elsewhere). She responded that she had heard similar complaints from other American guests and she would accept our promise that we would arrive as planned and simply take cash on arrival. While I would have preferred some money on the table to feel like were more "officially" the renters of that property, her reservation calendar on the web site now shows our dates blocked off as taken and we will be in frequent email contact with her as our dates get closer to June. Negotiations like this are much easier when you have 4-5 properties you feel like you can choose from and be equally happy. One of them is bound to have the ability to avoid bank transfers. You might consider offering to cover the 3% Paypal fee if they set up an account (I wish they all did!).