Zillow Data Shows Dual Agency Costs Sellers $1.49B Since 2023
Zillow’s analysis finds sellers lose an average of $2,165 per home sale in dual-agency transactions, totaling $1.49 billion in missed value since 2023. Eight states prohibit dual agency, while other jurisdictions allow it with disclosures and potential benefits like faster closings at the expense of negotiation leverage.
1. Zillow Analysis Reveals Seller Losses
Zillow’s internal data shows home sellers forfeited roughly $2,165 per transaction when using dual agency, aggregating to $1.49 billion in missed value since 2023.
2. State Regulations on Dual Agency
Dual agency is banned in Alaska, Colorado, Florida, Kansas, Maryland, Oklahoma, Texas and Vermont, while other states permit it under written disclosure requirements.
3. Pros and Cons for Buyers and Sellers
Dual agency can streamline communication and potentially reduce commission, but it creates a conflict of interest that may undermine price negotiations and maximal sale proceeds.
4. Implications for Zillow’s Marketplace Services
These findings could drive Zillow to enhance transparency tools and introduce commission negotiation features to bolster user trust on its platform.