Emerging business models following the NAR settlement agreement

The landmark settlement agreement reached by the National Association of Realtors (NAR) has ushered in significant changes within the real estate industry, particularly in business models and operating tactics. The settlement, intended to enhance transparency and foster fair competition, requires buyers and their agents to agree on the agent’s pay in writing and bars offers of buyer-agent pay on the MLS. It prompts a reevaluation of traditional business practices and is likely to drive new models in real estate as consumer expectations shift.

Editor’s note (November 2026): This article was published on May 15, 2024, before the settlement’s practice changes took effect on August 17, 2024. The questions at the end of this article explain what changed.

We have identified several key models that can capitalize on the increasing bargaining power of buyers and sellers. We would also like to hear from readers about how they expect the settlement agreement to affect their businesses in the medium to long term. Please share your thoughts through our contact form or call us at (410) 768-2300.

Model 1: self-service with professional support

This model blends do-it-yourself steps with professional expertise. It offers a balanced solution for buyers who are comfortable using technology and handling some parts of the buying process themselves, but who still need specialized legal and financial advice. It could particularly appeal to a well-informed, proactive segment of the market that values independence but recognizes the complexity of real estate transactions.

1. Self-Service Tours: In this model, buyers tour properties on their own, using online platforms to schedule visits or lockbox systems that let them access properties at their convenience. This approach suits the modern buyer’s desire for flexibility and control over the home-buying process and reduces reliance on real estate agents for arranging and conducting tours.
2. Legal and Title Expertise: After selecting a home, buyers engage a law firm for contract review, drafting and negotiation, and a title company for the title search and settlement. These professionals make sure the contract is legally sound and the buyer’s interests are well protected. This phase benefits from the specialized knowledge of attorneys, who can navigate complex legal terrain more effectively than traditional real estate agents.
3. Valuation and Due Diligence: These firms can also offer or coordinate professional valuation services to help the buyer make a sound investment. This might include detailed market analysis, property history reviews and third-party appraisals. The title company’s involvement helps make sure the title is clear and that any liens or encumbrances are dealt with before the buyer proceeds.
4. Negotiation Support: Professional negotiators or attorneys could assist with negotiations, working to secure the best possible deal for the buyer. This could be particularly helpful in complex situations, such as those involving multiple interested parties, commercial investments or unique properties that do not fit typical valuation models.

Model 2: full-service real estate concierge

The full-service real estate concierge model positions the agent not just as a facilitator of transactions but as a vital partner in the entire process. It adds considerable value to traditional real estate services in order to justify higher fees. Rather than presenting the buyer or seller with itemized fees, the concierge approach allows lump-sum charges in exchange for exceptional service and partnership.

1. One-Stop Shop: In this model, real estate agents or agencies become full-service providers, acting much like a concierge for new homeowners. This approach goes beyond the traditional roles of showing homes and negotiating deals. Agents help with virtually every part of the move, from the day a property goes under contract to the moment the buyer moves in. Services could include setting up utilities (electricity, water and internet), scheduling and overseeing inspections, arranging repairs or renovations, and even helping with interior design or furniture placement.
2. Enhanced Client Experience: By offering a broad range of services, agents can give buyers a seamless transition and greatly reduce the stress and logistical headaches that often come with buying a home. This model could be particularly attractive to first-time buyers, busy professionals and relocating buyers who may not have the time or local knowledge to manage these tasks themselves.
3. Brand Differentiation: This expanded service offering can set an agency apart in a crowded market. Providing a full suite of services under one brand makes the agency more attractive and increases client loyalty and referrals. The convenience of a single point of contact for every part of the home-buying process can be a major selling point.
4. Revenue Opportunities: Each additional service is a potential revenue stream. Some services might be included in a standard commission, while others could be offered for a separate fee, creating multiple sources of income. Partnerships with service providers (such as utility companies, contractors and furniture stores) could also yield referral fees or negotiated discounts that benefit both the clients and the agency. Under RESPA section 8, though, an agency may not accept a fee or anything of value for referring settlement services such as title, mortgage or settlement work.
5. Market Expansion: The full-service model allows agencies to reach additional markets, such as luxury real estate, where buyers expect a high level of service, or corporate relocation, where companies want a complete solution for moving employees efficiently.

Model 3: subscription-based brokerage services

When pricing is based on time and services rather than outcomes, buyers and sellers may better understand the value their agent provides, and the agent’s incentives line up more closely with the client’s.

Subscription-based brokerage services are a relatively new but rapidly evolving business model in real estate. Instead of the traditional commission, the client pays a recurring fee for ongoing real estate services. Here is how these services work, and why they may represent part of the future of real estate transactions. These relationships rely on three key elements:

1. Service Structure: Subscription-based brokerages provide a set of services for a monthly or annual fee rather than a commission based on the sale price. These services can include access to listings, personal consultations with agents, market analysis reports, and help with buying, selling or renting property. Clients can choose from different tiers of service, each with a different level of support, and select the plan that best fits their needs and budget.
2. Customization and Flexibility: A key advantage of this model is that it can be tailored. Subscribers choose how much guidance they need, from basic support to full management of their real estate transactions. This flexibility particularly appeals to savvy consumers who do not need full-service help but still want expert guidance and tools.
3. Continuous Relationship: In traditional models, a client’s dealings with a real estate agent revolve around a single transaction. The subscription model builds a continuing relationship between the client and the brokerage. That relationship can build trust and provide consistent support, which makes it well suited to clients who buy and sell often, such as investors and developers.

Conclusion

Each of these three models offers an alternative business structure that creates value in a different way from the traditional 3%–6% commission. As in any industry undergoing disruption, there is substantial opportunity for real estate firms that adopt the most effective elements of these models to grow their market share. We expect these models to keep evolving over the next 5–10 years as the market adjusts.

NAR settlement questions from Maryland buyers and sellers

What changed for home buyers and sellers after the NAR settlement?

The settlement’s practice changes took effect on August 17, 2024. Offers to pay a buyer’s agent can no longer be posted on the MLS, and an agent working with a buyer must have a written agreement with that buyer before touring a home. The agreement has to state the agent’s pay as a clear amount or rate, and commissions remain negotiable.

Who pays the buyer’s agent now?

The buyer and their agent settle that in their written agreement. A seller can still agree to pay some or all of it, for example as a term of the sales contract, but the offer can no longer be made through the MLS. Owners selling on their own can read about our For Sale by Owner support.

Can I buy a home in Maryland without a real estate agent?

Yes. Maryland does not require a buyer to use a real estate agent. Without one, it is wise to have a Maryland attorney review or draft the sales contract, and a title company search the title and handle the settlement. This is the self-service model described in this article. Read who picks the title company in a Maryland purchase.

What does a title company do at a Maryland settlement?

It searches the land records to confirm the seller can pass clear title, issues title insurance, pays off existing mortgages and liens, holds and pays out the settlement funds, and records the new deed in the land records of the county where the property is. In Maryland an owner’s title policy is optional, and its premium is paid once, at settlement. Read more about residential settlements.