Every major industry has a moment when the old model breaks. Something new has to take its place.
For real estate, that moment was 2024.
The NAR settlement didn't just change how commissions work. It exposed what anyone who has ever bought a home already knew: the system was never really built for buyers.
Follow the Money
The traditional real estate model is built around the transaction. Agents get paid when deals close. Sites like Zillow and Realtor.com make money when buyers click through to agents — which means their incentive is to generate clicks, not to help you find the right home. Lenders get paid when mortgages fund.
Every incentive in the system points to one thing: getting you to buy a house as fast as possible.
That's fine if you're ready. It's a disaster if you're not.
A buyer two years away from being financially ready to purchase doesn't generate revenue for anyone in the traditional model. So the industry ignores them. Or worse, it rushes them. It shows them listings they can't afford, connects them with agents who will work them for six months and then move on, and feeds them optimistic affordability numbers. All designed to get them to the closing table before they're truly ready.
The result? Buyers who are anxious, confused. They're convinced the only way to get through this is to find someone they trust and do whatever that person says.
That trust is the most valuable thing in real estate. And the industry has spent decades exploiting it.
The Conflict Of Interest
Nobody in the industry wants to say this out loud: the buyer's agent, as traditionally structured, has a conflict of interest.
The buyer's agent is supposed to represent the buyer. But the buyer's agent gets paid more when the buyer pays more. They get paid faster when the deal closes faster. They get paid nothing if the buyer decides to wait.
This doesn't mean buyer's agents are bad people. Most of them genuinely want to help. But the incentive structure is broken. It produces predictable outcomes.
The 2024 NAR settlement forced buyers to sign representation agreements and negotiate compensation directly. For the first time, buyers have to consciously decide what they're paying for and whether it's worth it.
That is a good thing. But it only works if buyers understand the process well enough to make that decision.
What Buyers Need
Before a buyer is ready to hire a professional, they need three things:
First, they need to understand the real math. Not the optimistic calculator math. The actual math — closing costs, reserves, debt-to-income ratios, the true cost of homeownership beyond the mortgage payment.
Second, they need to understand the process. What happens in what order. What they can negotiate. What they can't. What a good agent actually does versus what a mediocre one does.
Third, they need to understand their own situation. What kind of buyer are they? What's their actual timeline? What are their non-negotiables?
The industry doesn't build tools for this. It builds tools for agents to capture leads, for portals to sell advertising, and for lenders to pre-qualify borrowers.
No one was building a tool that was genuinely, structurally on the buyer's side.
Why ARRO Exists
ARRO is built around a simple premise: buyers in control make better decisions, have better experiences, and ultimately become better clients for the brokers who serve them.
We start with the math. We give buyers a Readiness Score — a brutally honest timeline that tells them exactly when they will be ready to buy, and what they need to do to get there.
Then we give them a roadmap. Step by step, in plain language, without a sales pitch. We help them understand the process, organize their progress, and build the knowledge they need to make good decisions.
And when they're ready? We introduce them to the right broker. Not the one who paid the most for their zip code. The one who is the right fit for their specific situation, their personality, and their timeline.
We don't take referral fees. We don't tax the transaction. We charge brokers a flat subscription because we believe the right model is one where everyone's incentives are aligned.
The industry has a buyer problem. We're fixing it.
Actionable Steps
Assume the system is not protecting you. Until you hire a dedicated buyer’s broker, everyone you talk to in a real estate transaction represents the seller’s interests, not yours.
[Build your own team. Don’t just use the inspector or the title company the listing agent recommends. Use directories like the American Society of Home Inspectors](https://homeinspector.org) to vet your own independent professionals.
Take control of the process. The industry creates artificial urgency to get you to close. If a deal feels rushed, step back. Use ARRO to understand exactly where you are in the home buying process so you never feel pressured.
Frequently Asked Questions
If the system is broken, why do most people still use it?
Because there hasn’t been a real alternative. The traditional model is deeply entrenched, and most buyers don’t realize how it works until they’re already in the middle of a transaction. The 2024 NAR settlement is starting to change this by forcing buyers to consciously negotiate and agree to compensation terms upfront.
What is the 2024 NAR settlement and how does it affect buyers?
The National Association of Realtors reached a settlement in 2024 that changed how buyer’s agent compensation works. Previously, seller’s agents typically offered a portion of their commission to buyer’s agents as part of the MLS listing. Under the new rules, buyers must negotiate their agent’s compensation directly and sign a representation agreement before touring homes. This gives buyers more transparency and more control.
Does the buyer always pay the buyer’s agent?
Not necessarily. The buyer negotiates compensation directly with their agent, but the seller can still agree to cover all or part of that cost as part of the transaction. What changed is that this negotiation now happens explicitly and upfront, rather than being baked invisibly into the listing commission.
What is dual agency and why is it a problem?
Dual agency is when the same agent represents both the buyer and the seller in a transaction. It’s legal in most states but structurally problematic — an agent cannot fully advocate for both sides of a negotiation simultaneously. In practice, dual agency often means neither party gets full representation.
How do I find a buyer’s broker who actually works for me?
Start with referrals from people who recently bought in your target area. Interview at least two or three candidates. Ask specifically about their track record representing buyers (not just their total transaction volume). And use ARRO to find brokers who are vetted and matched to your specific situation.
Haj Khalsa is the founder of ARRO, Creative Acorn, and HANGTIME — a Santa Fe-based outdoor lifestyle brand. He is also a rock climber, telemark skier, and dad.