Adapting Real Estate Broker Compensation Models for 2026

Introduction: The Post-Settlement Landscape for Real Estate Brokers

Trust has always been the invisible currency in real estate, but as we move toward 2026, transparency is rapidly becoming its measurable counterpart.

The National Association of REALTORS® (NAR) settlement has accelerated long‑brewing shifts in how real estate brokers structure compensation, present value, and manage risk. The settlement, with core practice changes effective August 17, 2024, removed offers of compensation from MLS fields and placed new emphasis on written buyer representation agreements and explicit negotiation of fees.What the NAR settlement means for home buyers and sellers (4) These changes are colliding with affordability concerns, rising operating costs, and rapid technology adoption—forcing brokers to rethink compensation models from the ground up.

This is exactly the environment where payment discipline, operational efficiency, and risk controls matter more than ever. This is also exactly why services like Bankshot exist—to help real estate brokerages, title companies, and property managers move high‑value funds quickly and securely so compensation models work in practice, not just on paper.

Decoupling Commissions: What the NAR Settlement Means for Broker Compensation

The NAR settlement fundamentally decouples buyer broker compensation from mandatory MLS offers, shifting the conversation about “who pays whom” squarely to the negotiation table with buyers and sellers.

According to NAR’s own guidance, listing brokers and sellers may still offer compensation to buyer brokers, but they can no longer advertise that offer in the MLS; instead, compensation must be communicated off‑MLS and negotiated directly.What the NAR settlement means for home buyers and sellers (4) Consumer‑facing resources are already underscoring that commissions are fully negotiable, that sellers often pay both listing and buyer agent commissions, and that structures can vary significantly by market.Who pays real estate commission and closing costs (5)

How compensation conversations are changing

In practical terms, compensation is becoming a discrete negotiation item instead of an assumed norm. Realtor.com explains that:

• Total commissions often range around 5–6% of the sale price, historically paid by the seller and then split between listing and buyer brokers.

• Post‑settlement, buyers may directly negotiate to pay their own broker, request seller concessions, or structure a hybrid depending on lender and local rules.Who pays real estate commission and closing costs (5)

A case study from the Nashville market shows these shifts quickly moving from theory into practice. Local brokers now emphasize explicitly negotiable commissions, transparent explanation of services, and more tailored fee structures.Nashville real estate commission changes 2025 (7) This pattern is a useful preview for brokers nationwide: compensation will increasingly be judged against clearly articulated value.

Implications for brokerage revenue planning

Top brokerages already operate in a highly competitive and consolidated environment. RealTrends’ 2025 Verified Brokerage Rankings highlight how transaction sides and volume are concentrated among a relatively small group of firms such as Compass, eXp Realty, and Anywhere Advisors, which continue to grow via scale and acquisitions.RealTrends Verified 2025 brokerage rankings (1)

In a world where commission offers are less standardized and more directly scrutinized by consumers, margin pressure moves upstream to the brokerage P&L. To preserve profitability, brokers will need:

• More flexible commission menus for agents and clients.

• Tighter control of payment flows and commission disbursements.

• Lower back‑office friction and payment costs—exactly the types of costs that digital platforms like Bankshot are built to reduce.

Table 1: Key structural shifts from the NAR settlement

Mandatory Buyer Representation Agreements: New Compliance and Disclosure Requirements

One of the most operationally significant changes is the requirement for written buyer representation agreements in many contexts, particularly where MLS rules or brokerage policies now mandate them.

NAR explains that as part of its practice changes, buyer brokers must enter into written agreements with buyers that specify the broker’s compensation and services, reinforcing that compensation is negotiable and can be paid by buyers, sellers, or a combination.What the NAR settlement means for home buyers and sellers (4) This mirrors long‑standing regulatory expectations at the state level, where real estate commissions emphasize documented agency relationships, disclosure of duties, and transparent compensation.

State oversight and professional standards

The Ohio Division of Real Estate and Professional Licensing offers a representative view of how states oversee the profession. It outlines that state commissions regulate licensing, investigate complaints, and can impose sanctions ranging from fines to license suspension when brokers fail to meet statutory and ethical duties.Regulating real estate professionals (3)

Education providers and risk‑management carriers consistently identify breach of duty, misrepresentation, and failure to disclose as top complaint categories. Pinnacle Real Estate Academy notes that many complaints arise when agents do not clearly explain agency relationships, conflicts of interest, or material facts, leading to claims of negligence or misrepresentation.Most common complaints filed against real estate agents (9)

Documentation as both shield and differentiator

CRES Insurance, which insures brokers against professional liability, similarly reports that common lawsuit triggers include:

• Failure to disclose known property defects.

• Miscommunication about transaction terms.

• Breach of fiduciary duties such as loyalty and care.

• MLS‑related errors in listing details.Common complaints that lead to litigation (2)

Structured buyer representation agreements help mitigate these risks when they:

• Clearly define duties (advocacy, negotiation, property search, transaction management).

• Spell out compensation, including how it will be handled if a seller does or does not contribute.

• Confirm that buyers understand how and when their broker is paid.

For brokers, this is where payment operations and documentation intersect. If a brokerage promises a particular fee structure, it must then execute accurate, timely, and auditable commission payments. This is exactly why services like Bankshot exist: to connect contractual compensation models to secure, traceable fund flows that satisfy clients, agents, and regulators.

Table 2: Compliance touchpoints in buyer representation

Brokerage Models in Transition: Flat Fees, Graduated Splits, and Performance-Based Compensation

As compensation decouples and transparency increases, brokerage economic models are entering a period of experimentation.

RealTrends’ 2025 rankings illustrate how some large firms are scaling through agent count and transaction sides, while others compete on productivity and higher volume per agent.RealTrends Verified 2025 brokerage rankings (1) That strategic diversity is mirrored in compensation structures, which increasingly include:

• Flat‑fee models: Agents pay a monthly or per‑transaction fee and retain most of the commission.

• Graduated splits: Higher‑producing agents earn more favorable splits as they hit volume thresholds.

• Performance‑based bonuses: Brokerages tie additional incentive pay to customer satisfaction, compliance metrics, or team performance.

Lessons from local adaptation

The Nashville case study provides a micro view of how brokers are re‑tooling offers. Local commentary describes:

• More explicit menu‑style options for listing and buyer services.

• A wider range of commission percentages depending on service level and marketing investment.

• Increased focus on explaining to consumers what each fee covers, especially in a high‑competition urban market.Nashville real estate commission changes 2025 (7)

For real estate brokers, this reinforces a key point: compensation models are now a branding tool. The way a firm charges—whether traditional split, fee‑based, or hybrid—must align with its value proposition, training programs, marketing resources, and technology stack.

Operationalizing new models with better payments

Any shift in compensation design creates added complexity in commission disbursement—multiple splits, team overrides, referral fees, and vendor payments (e.g., marketing reimbursements, transaction coordinators). Manual checks and fragmented payment workflows make it hard to keep up.

This is exactly why services like Bankshot exist: to give brokerages, title companies, and property managers a centralized way to receive earnest money, manage commission disbursements, and route funds to multiple parties quickly and securely, often in under a day.Bankshot payments overview (5) Faster, more transparent payments make innovative compensation structures easier to explain and easier to trust.

Profitability Pressures: Navigating Rising Costs and Housing Affordability

While compensation models are evolving, macro‑level pressures are increasing. NAR’s survey of more than 4,500 real estate executives found that:

• 56% cited housing affordability as a top concern.

• 36% pointed to rising operating costs.

• 35% were concerned about local economic conditions.Real estate firms cite affordability and rising costs (6)

Despite this, 38% of firms expected profitability to increase over the next two years, suggesting leaders believe they can adapt through efficiency, technology, or strategic repositioning.Real estate firms cite affordability and rising costs (6)

Where compensation meets cost control

For real estate brokers, these findings imply a dual mandate:

1. Design compensation that attracts and retains productive agents.
2. Control non‑commission expenses aggressively.

Key cost categories where brokers are responding include:

• Office footprints: Many firms are rightsizing physical space in favor of hybrid models.

• Marketing and lead generation: Shifting toward digital channels with clearer ROI.

• Back‑office processes: Automating accounting, compliance tracking, and payments.

Digital payment tools are a tangible lever. Bankshot, for example, is built specifically for high‑liability real estate funds—earnest money, commissions, property‑management payments—and aims to reduce payment processing costs by up to 70–90% compared to traditional methods, while moving funds in roughly a day instead of multiple days.Bankshot platform benefits (6) For brokers under cost pressure, the ability to lower bank fees, overnight shipping, and manual processing hours directly supports profitability.

Table 3: Profitability levers for brokers in a changing commission environment

Technology and Tools: Leveraging AI and Digital Platforms for Competitive Advantage

Any discussion of 2026 broker compensation models must include technology adoption, because how brokers work increasingly influences how they can afford to pay—and be paid.

NAR’s 2025 survey on AI and digital tools found that:

• 79% of REALTORS® use e‑signature platforms.

• 75% use social media tools daily.

• 52% use drone photography or videography.

• 46% use AI‑generated content.

• 42% use AI tools at least weekly or daily.REALTORS embrace AI and digital tools (10)

These figures underscore that technology is no longer a differentiator—how well it is integrated is.

From marketing tech to money‑movement tech

The PwC/ULI “Emerging Trends in Real Estate 2026” report notes that industry leaders are investing in operational technology that streamlines workflows, improves data visibility, and supports new business models.Emerging Trends in Real Estate 2026 (8) For brokers, that increasingly includes payment platforms that:

• Accept multiple payment types (ACH, wires, checks) within a unified interface.

• Provide real‑time tracking and status visibility for all parties.

• Support audit trails for compliance and trust‑account management.

This is the gap Bankshot is designed to fill in the real estate ecosystem—simplifying how earnest money, commissions, and other high‑value funds move between buyers, sellers, brokerages, and title companies, without forcing firms into generic, consumer‑grade payment systems.Bankshot payments overview (5)

Aligning tech strategy with compensation strategy

For real estate brokers, three practical questions help align technology and compensation:

1. Does our tech stack support the compensation models we want to offer? If you are experimenting with performance‑based bonuses or team structures, you need reporting and payment capabilities to match.

2. Are we using technology to reduce friction in how agents get paid? Faster, predictable payments are a recruiting tool, especially for top performers.

3. Can we demonstrate to clients how our technology supports the value behind our fees? Secure digital payments, clear timelines, and real‑time status updates make it easier to justify professional compensation in a transparent market.

Risk Management: Avoiding Litigation and Maintaining Professional Standards

As brokers rework compensation, they cannot lose sight of a sobering constant: the same complaint categories keep driving litigation and disciplinary action.

CRES Insurance highlights that many lawsuits against brokers arise from:Common complaints that lead to litigation (2)

• Failure to disclose known issues about a property.

• Miscommunication or inaccurate statements about terms, timelines, or conditions.

• Breach of fiduciary duty in pricing, negotiation, or loyalty.

• MLS errors that misrepresent material facts.

Pinnacle Real Estate Academy’s training materials echo this list, emphasizing that breach of duty, misrepresentation, conflicts of interest, negligence, and failure to disclose are the most common complaint themes.Most common complaints filed against real estate agents (9)

How compensation changes can increase risk—if unmanaged

New commission structures and buyer‑paid models can inadvertently raise the stakes if not carefully documented. For example:

• A buyer agreement that vaguely describes how the broker will be paid could lead to disputes if the seller contribution differs from expectations.

• Complex team splits or referral fees handled informally may create conflicts of interest if not disclosed.

• Trust‑account errors or delays in disbursing commissions can attract regulator scrutiny.

State regulators, like those overseeing the Ohio market, investigate such issues and can impose discipline ranging from reprimands to license revocation.Regulating real estate professionals (3)

Practical risk‑management steps for brokers

To reduce exposure while navigating new compensation models, real estate brokers can:

• Standardize written buyer and seller agreements that clearly describe services and fees.

• Implement regular training on disclosure, fiduciary duties, and MLS data integrity.

• Use digital systems that create verifiable logs of communications, signatures, and payments.

• Centralize earnest money and commission flows in secure platforms with clear audit trails—this is exactly why services like Bankshot exist, to turn high‑liability, high‑value payments into predictable, well‑documented processes.

Strategic Outlook: Positioning for Success in a Transparent, Negotiable Market

Looking toward 2026, a few themes emerge from the data and trends:

• Compensation will remain negotiable and more visible to consumers, making value communication central to brokerage strategy.Who pays real estate commission and closing costs (5)

• Scale and specialization will both matter. Large firms highlighted in RealTrends rankings will keep leveraging volume, while niche brokerages compete on expertise, service, and technology.RealTrends Verified 2025 brokerage rankings (1)

• Technology adoption will deepen, especially around AI, workflow automation, and payments.REALTORS embrace AI and digital tools (10)Emerging Trends in Real Estate 2026 (8)

• Profitability will hinge on operational discipline, not just top‑line growth, as affordability and cost pressures persist.Real estate firms cite affordability and rising costs (6)

For real estate brokers, the path forward involves:

1. Re‑designing compensation models to reflect post‑settlement realities, local market norms, and firm strategy.

2. Embedding compliance and documentation into buyer/seller agreements and day‑to‑day workflows.

3. Investing in targeted technology—including specialized payment platforms like Bankshot—that directly support faster, more secure, and more transparent handling of commissions and earnest money.

4. Treating risk management as a growth enabler, not just an expense, by reducing complaint‑driven distractions and protecting reputation.

The firms that thrive in 2026 will not necessarily be those with the flashiest split chart, but those whose compensation, operations, technology, and risk controls all line up into a coherent, trustworthy experience for clients and agents.

Moving Forward: Next Steps for Broker-Owners and Leaders

If you are leading a brokerage today, three concrete actions can help you adapt your compensation model while strengthening your position in this new landscape:

• Audit your current agreements and payment flows. Confirm that buyer and seller documents reflect post‑settlement norms, compensation is clearly described, and payment processes match what’s promised.

• Model alternative compensation structures (flat fees, graduated splits, performance components) using realistic assumptions about affordability, costs, and agent productivity informed by industry research.Real estate firms cite affordability and rising costs (6)

• Upgrade your payment infrastructure so earnest money, commissions, and other disbursements are fast, secure, and easy to track—areas where Bankshot is specifically built for the real estate, title, and property‑management ecosystem.Bankshot payments overview (5)

As the industry moves deeper into a transparent, negotiable, and tech‑enabled era, compensation models will keep evolving. The brokers who win will be those who pair thoughtful compensation design with modern payment tools and rigorous professional standards, giving both clients and agents clear reasons to stay.

References

1. RealTrends Verified 2025 Brokerage Rankings – Top Brokerages by Sides, Volume, and Growth

2. CRES Insurance – Real Estate Broker Beware: Most Common Complaints That Lead to Litigation

3. Ohio REALTORS – Regulating Real Estate Professionals

4. National Association of REALTORS – What the NAR Settlement Means for Home Buyers and Sellers

5. Realtor.com – Who Pays Real Estate Commission and Closing Costs in 2025

6. National Association of REALTORS – Real Estate Firms Cite Housing Affordability and Rising Costs as Biggest Challenges

7. Nesting in Nashville – Nashville Real Estate Commission Changes 2025

8. PwC / Urban Land Institute – Emerging Trends in Real Estate® 2026

9. Pinnacle Real Estate Academy – The Most Common Complaint Filed Against Real Estate Agents

10. National Association of REALTORS – REALTORS Embrace AI and Digital Tools to Enhance Client Service, NAR Survey Finds