Imagine hiring a lawyer. Now imagine that same lawyer also represents the person suing you. Both of you signed paperwork saying it was fine. Both of you were told the lawyer would be fair. But somewhere in the back of your mind, you know the structure itself is broken. That is dual agency in real estate.
This video explains dual agency in plain language, covering what sellers need to know before signing any listing agreement.
What is dual agency in real estate?
Dual agency occurs when a single real estate agent or brokerage represents both the seller and the buyer in the same transaction. In California, this is legal with written consent from both parties. The agent is required to disclose the dual relationship and obtain signatures acknowledging it.
On paper, the agent agrees to treat both sides fairly and maintain confidentiality for each client. In practice, that is a difficult balancing act. The agent knows the seller's bottom line and the buyer's maximum budget. They know who is under more time pressure. They know who will bend and who will not. Holding both sets of information while serving both parties creates a structural tension that paperwork cannot resolve.
Why do nine U.S. states ban dual agency?
Alaska, Colorado, Florida, Kansas, Maryland, Oklahoma, Texas, Vermont, and Wyoming have all concluded that the inherent conflict in dual agency is serious enough to prohibit or sharply restrict it. These states looked at the same question every seller should ask: can one agent truly protect both sides of a negotiation?
The reasoning is straightforward. A seller's agent has a fiduciary duty to get the highest possible price. A buyer's agent has a fiduciary duty to get the lowest possible price. One person cannot fully serve both objectives simultaneously. Something gives. And the something that gives is usually the seller's leverage, because the agent's financial incentive is to close the deal, not to hold firm on price.
International markets have reached similar conclusions. The United Kingdom, British Columbia, and Quebec all restrict dual agency in various forms. Serious regulators looked at the conflict and decided structure matters.
How does dual agency affect your negotiation as a seller?
When your agent also represents the buyer, the negotiation dynamic shifts. Your agent cannot advocate aggressively for your price because they also have a duty to the buyer. They cannot share your flexibility on timing or price because that information is confidential. But they know it. And that knowledge, even subconsciously, changes how they advise both parties.
The most common result is a smoother transaction. Sounds good until you realize "smoother" often means the seller gave more ground than they needed to. The agent's incentive in dual agency is to get both sides to agree, not to push for the best outcome on your side.
What is the alternative to dual agency?
Hire an agent whose business model makes dual agency impossible. The Sellers Only Agent™ model does not represent buyers. There is no second client relationship. There is no dual agency disclosure to sign. The conflict does not exist because the structure prevents it from existing.
Represented buyers bring their own agent and negotiate normally. Unrepresented buyers can view the property and submit offers, but they are customers, not clients. The sellers-only agent's loyalty, confidentiality, and negotiation posture remain on the seller's side throughout the entire transaction.
What should I ask my listing agent about dual agency before signing?
Three questions:
- "Do you represent buyers?" If the answer is yes, dual agency is structurally possible in your transaction.
- "What happens if someone you are already working with as a buyer wants to make an offer on my home?" This reveals whether the agent has a plan or will simply ask you to sign a dual agency disclosure.
- "Would you be willing to refer the buyer to another agent to avoid dual agency?" If the answer is hesitant, consider what that hesitation reveals about where their incentives sit.
You can learn more about how the sellers-only alternative works at ConnorWithHonor.com.
Does avoiding dual agency cost the seller more?
No. In many cases, it costs less. When your agent's negotiation posture is fully aligned with your side, they are more likely to hold on price, push back on excessive repair requests, and protect your net proceeds. The financial benefit of undivided advocacy often exceeds any perceived convenience of a single-agent transaction.
Combine that with a $17,000 fixed fee on the listing side and the math becomes very clear. You pay less for representation. You get stronger advocacy. The conflict is removed by design.
Related Reading
What Is a Sellers-Only Agent and Why Would I Want One? Do I Still Have to Pay the Buyer's Agent After the NAR Settlement? SellersOnlyAgent.com: The Seller's AgentFrequently Asked Questions
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