Dual Agency Costs Sellers $1.49B, $2,165 Lost Per Sale
Zillow finds sellers lose $2,165 per dual-agency home sale, totaling $1.49 billion since 2023, while eight states ban the practice outright. Dual agents risk conflicts by representing both buyer and seller but can speed closings and enable commission rate negotiations.
1. Analysis of Dual Agency Costs
Zillow’s data shows that sellers forfeit an average of $2,165 on each dual-agency transaction, with cumulative losses reaching $1.49 billion since 2023. This figure underscores the financial impact of a single agent representing both buyer and seller in the same deal.
2. State Regulatory Landscape
Eight states—Alaska, Colorado, Florida, Kansas, Maryland, Oklahoma, Texas and Vermont—prohibit dual agency entirely, while most other states permit it subject to written disclosure. The varied regulatory environment influences where consumers can and cannot choose dual agency.
3. Advantages and Disadvantages
Dual agency can streamline transactions through a single point of contact and may allow for commission negotiations, potentially lowering fees. However, the inherent conflict of interest means agents cannot fully advocate for either side without compromising the other’s position.
4. Implications for Zillow and Market
Highlighting these cost disparities may drive more sellers and buyers to seek transparent representation and leverage Zillow’s platform tools to compare agent arrangements. Increased awareness could boost demand for services that help clients avoid dual-agency pitfalls.