May 22, 2026
Say you’re getting ready to list your home. Your neighborhood is still a sellers’ market, albeit a cooling one. You’re talking to real estate agents and notice they have a box to tick if you want to allow dual agency — a transaction in which one agent represents both buyer and seller.
This practice presents a potential conflict of interest, which is why it’s regulated or even banned in some states. According to a Zillow analysis, the dynamic “can incentivize certain agents to close a deal with a buyer they represent rather than negotiate hard for the maximum sale price.”
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Zillow found sellers miss out on an estimated $2,165 in a dual-agency home sale. Add that up and it amounts to $1.49 billion in lost sales value since 2023.
On the other hand, the dual agent may be incentivized to prioritize the seller over the buyer to get a higher closing price — and therefore a higher commission.
“A dual agent cannot strongly advocate for one side without compromising their role with the other,” according to Redfin.
There are eight states where dual agency is banned outright: Alaska, Colorado, Florida, Kansas, Maryland, Oklahoma, Texas and Vermont. Most other states, including California and New York, allow it with written disclosure.
So are there any upsides to dual agency?
Advantages of dual agency
Dual agency could naturally arise if you’re listing with an agent who happens to represent another home that you’re interested in. Similarly, that home might be represented by a different agent but one from the same brokerage.
It might make sense in some scenarios, such as when the buyer and seller already know each other (say, parents selling the house to their adult child) and have already agreed on terms. It could also be an option for highly experienced investors and savvy negotiators.
There’s less back-and-forth between agents with dual agency, which could make for a potentially faster sale.
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“With a single point of contact, scheduling showings, drafting paperwork and moving the transaction forward can feel simpler for both buyer and seller,” according to Redfin
Dual agents earn the full commission upon the home sale so it may be possible to negotiate a smaller commission. Commissions — generally split between the listing agent and buyer’s agent — range between 5% and 6% of the home’s sale price and are generally the seller’s largest closing cost. Negotiating that cost down could be a tremendous saving.
But it’s possible to negotiate other closing costs, too, even without a dual agent.
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How to reduce your closing costs — even without a dual agent
Aside from the cost of the property itself, closing costs include all costs associated with the sale, including:
- Agent commissions
- Attorney fees
- Home inspections
- Title searches
- Recording costs
- Messenger fees, and more
Those can add up, ranging between 2% and 7% of a home’s sale price, according to Realtor.com. That could represent $8,980 to $31,430 on a $449,000 home.
Sellers will receive documents from their agent that outline estimated closing costs, but you can get an idea by plugging your numbers into an online closing cost calculator, like the one from Fannie Mae, to help you budget.
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You can also negotiate closing costs.
“Most closing costs are negotiable,” Leah Layman, a real estate agent in Augusta, Georgia, told Realtor.com. “Do not let the agents or vendors convince you otherwise.”
For example, a buyer could request that the seller cover a portion of the buyer’s closing costs. This, of course, depends on whether it’s a buyer’s or seller’s market.
This is where an agent with strong negotiation skills — who isn’t representing the other party — can come in handy.
Meanwhile a seller could sell their home ‘as is,’ which means the buyer is responsible for any repairs that arise during the home inspection. Or, a seller could forgo a listing agent altogether and sell the house themselves to cut down on commission and closing costs.
However, the Zillow analysis found that sellers who listed off the Multiple Listing Service (MLS) themselves typically sold for 1.3% less than those who listed publicly.
Overall, it’’s generally a good idea for buyers and sellers to get an agent — but preferably one representing just them in the transaction.
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Vawn Himmelsbach is a veteran journalist who covers tech, business, finance and travel. Her work has been featured in publications such as The Globe and Mail, Toronto Star, National Post, CBC News, Yahoo Finance, MSN, CAA Magazine, Travelweek, Explore Magazine and Consumer Reports.
