Sellers Lose over $2K on Typical Dual Agency Transaction: Study

Why It Matters

The findings highlight how conflicted representation and hidden listings erode seller equity, prompting calls for greater transparency and stricter agency rules in the U.S. real‑estate market.

Key Takeaways

• Sellers lost $1.49 B in dual‑agency deals from 2023‑2025.
• Off‑MLS listings cost sellers $1.36 B, about 1.3% lower prices.
• Average per‑home loss: $2,165 (dual) vs $4,230 (off‑MLS).
• California saw the biggest dual‑agency loss at $533 M.

Pulse Analysis

Zillow’s new report quantifies the hidden cost of dual agency, a practice where a single broker represents both buyer and seller. By reviewing over 15 million transactions, the study reveals that sellers on average surrender $2,165 per home when their agent doubles as the buyer’s representative. The financial incentive for agents to capture both commissions creates a subtle conflict of interest that can depress sale prices, especially in high‑volume markets like California, where the aggregate loss topped $533 million.

Off‑MLS listings—often marketed privately or withdrawn from the public MLS—exert a similar drag on seller proceeds. The analysis shows a 1.3% price penalty, translating to roughly $4,230 per home, and a total industry loss of $1.36 billion over three years. These hidden listings limit buyer exposure, reduce competition, and disproportionately affect lower‑priced homes and communities of color, amplifying equity gaps in the housing market. The trend persists despite rising inventory, suggesting that limited visibility, rather than buyer demand, drives the discount.

For industry stakeholders, the data underscores the need for policy interventions that promote full‑market disclosure and prohibit conflicted representation. Real‑estate platforms, brokerages, and regulators may consider mandating separate representation or enhanced disclosure for dual‑agency and private listings. Such measures could restore competitive bidding, improve price outcomes for sellers, and address equity concerns highlighted by the study. As the market evolves, transparency will likely become a decisive factor in maintaining consumer trust and maximizing transaction value.