6 Startups Disrupting Traditional Real Estate Agent Models

A recent legal ruling has reshaped the real estate industry, challenging the traditional commission structures of real estate agents. The National Association of Realtors (NAR) settled lawsuits alleging inflated commissions, leading to new rules that offer sellers more flexibility in how they pay agents. Despite these changes, only 6% of sellers opted for for-sale-by-owner (FSBO) listings in 2024, while 86% of buyers still used agents, according to NAR data.

Key Startups Revolutionizing Home Selling

1. Galleon

• Model: FSBO marketplace resembling Craigslist for homes.
• Savings: Potential savings of $30,000+ by avoiding 6% commissions.
• Features: Free listings, with premium options ($299-$899) for professional photography, legal support, and offer management.

2. Listwise

• Model: Agent-matching platform where sellers set commission preferences.
• Process: Agents bid for listings, competing on fees and services.
• Benefit: Transparent pricing and tailored agent selection.

3. Off-Markt

• Concept: Instagram-like app for off-market home listings.
• Unique Angle: Homeowners control their property’s narrative with photos and videos.
• Agent Access: Agents pay $50/month to connect with potential sellers.

4. Redy

• Incentives: Agents compete with cash bonuses and competitive commissions.
• Success Story: One seller saved nearly $10,000 across two transactions.

5. Ridley

• Innovation: AI-powered tools for FSBO sellers, including listing drafting and photographer booking.
• Cost: One-time fees of $999-$1,999 for legal support.

6. Turbohome

• Salaried Agents: Agents earn salaries, not commissions.
• Buyer Benefits: Flat fees ($5K-$10K) with refunds up to $35K on a $1.5M home.

Industry Impact

These startups reflect a growing demand for cost-effective, transparent alternatives to traditional real estate transactions. While agents remain dominant, platforms like these empower sellers and buyers to explore new models. For more on the legal changes, read NAR’s settlement details.