How the Unbundling of Real Estate Services Is Redefining the Role of Agents
For nearly two decades, the real estate industry has been locked in a debate over whether technology will eventually make human agents obsolete. This ongoing conflict has frequently been framed as a battle of agents versus technology, full commission versus flat fees, and for-sale-by-owner (FSBO) transactions versus full-service representation. However, current consumer behavior suggests that this framing misinterprets what home buyers and sellers actually want.
Rather than seeking to eliminate agents entirely, consumers are increasingly looking for flexibility in the level of service they receive for their specific transactions. This shift is driving the unbundling of real estate services, a transition accelerated by the National Association of Realtors (NAR) settlement earlier this spring.
Consumer Data Shows Continued Reliance on Agents
Despite predictions that technology would lead to the demise of the traditional agent, historical data indicates that consumers are relying on professional representation more than in previous decades. Last year, only 5% of home sales were completed without any agent involvement, representing an all-time low. This is a significant decline from the 1980s, when FSBO transactions accounted for more than 20% of the market. Furthermore, 91% of home sellers chose to use an agent last year.
These figures indicate that home buyers and sellers are not rejecting professional assistance. Instead, the market is experiencing a quieter shift regarding how much assistance consumers want to purchase and which specific services they are willing to pay for.
The Shift Toward Unbundled Services
Real estate has historically remained one of the last fully bundled service industries. Traditionally, hiring an agent meant purchasing a single, inseparable package that included pricing strategy, Multiple Listing Service (MLS) access, marketing, negotiation, paperwork, and general advice, regardless of whether a client required every component.
Most other major service industries transitioned away from this model years ago. In travel, investing, and tax preparation, consumers can choose to manage tasks themselves, pay flat fees for specific advice, or hire full-service professionals for complex needs. Real estate has been slower to adopt this structure, largely because the transaction process remains highly complex.
The recent NAR settlement has accelerated this transition. Under the new terms, buyer-agent commissions must be negotiated individually rather than being silently integrated into the transaction, and sellers are no longer automatically required to cover these fees. This change has opened the door for alternative models, such as flat-fee MLS listings, hourly consultations, and à la carte services.
How the Changing Market Affects Real Estate Professionals
The unbundling of services presents different outlooks for real estate professionals depending on where they derive their value. Agents whose business models rely primarily on administrative tasks that technology can easily replicate—such as scheduling showings, generating comparable market analyses, and formatting paperwork—may face challenges as consumers seek cheaper alternatives for these specific duties.
Conversely, agents who specialize in high-value skills are expected to benefit from increased consumer choice. These skills include negotiation, managing high-pressure situations, applying local market knowledge that algorithms cannot replicate, and guiding clients through major financial decisions. When consumers can select and pay for individual services, the value of specialized expertise becomes more transparent.
This demand for transparency has led to the rise of alternative platforms like Ownli, a flat-fee real estate platform designed to offer predictable pricing rather than percentage-based commissions. Under traditional models, two identical transactions can cost vastly different amounts simply because of the sale prices of the homes. Emerging platforms aim to align costs with the actual work performed, offering consumers clearer insight into what they are paying for.
