Do You Know Who Your Real Estate Agent Really Works For?

You hire a real estate agent to represent you, whether you are buying or selling a home. You assume that agent is legally and ethically on your side, negotiating for your best interests. But in many transactions, that assumption is quietly false. A practice called dual agency allows one agent or one brokerage to represent both the buyer and the seller in the same deal. It is legal in most states, but only under very specific conditions, and those conditions are frequently violated. When your agent is secretly working both sides of the table, you are not getting the loyalty you paid for, and the financial consequences can be severe.

The core problem is simple. A real estate agent’s job is to get the best deal for their client. A buyer’s agent should push the price down and uncover every flaw in the property. A seller’s agent should push the price up and present the home in its best light. Those goals are directly opposed. When one person claims to represent both sides, that person has a built-in conflict of interest. They cannot simultaneously negotiate the lowest price for you and the highest price for the other party. Instead, they usually try to close the deal as quickly as possible, because their commission depends on a sale happening, not on you getting a fair price.

Most homeowners in the 45 to 64 age range have been through a few real estate deals. You know that buying or selling a house is one of the largest financial decisions you will ever make. That is why this matters so much. A dual agent might steer you toward a higher offer even though you are the seller, or push you to waive an inspection contingency when you are the buyer. You might never know that the person giving you advice is also the person advising the other side. The worst part is that many agents do not clearly disclose this relationship, despite state laws requiring written disclosure before any confidential information is shared.

How does this happen in practice? Imagine you call a listing agent directly because you saw a for sale sign in front of a house you like. That agent already works for the seller. If you ask them to help you buy that same house, they become a dual agent. In many states, they can do this as long as they get your written consent. But the consent form is often buried in a stack of paperwork you sign without reading. Or the agent frames it as a benefit, saying they can “work things out” for both sides. That is nonsense. You are giving up your leverage.

Another common scenario involves same-brokerage dual agency. The buyer and the seller use different agents, but those agents both work for the same real estate office. Even though you have separate individuals handling your deals, the brokerage as a whole is legally considered a dual agent. The office shares commission, and in many cases, the managing broker has access to private information from both sides. Your agent might say, “We’re on different teams, so it’s fine.” That is often not true under state law. The conflict is still there, and you rarely get the full picture.

What should you watch for? First, read every disclosure form carefully before signing. If you see the words “dual agency,” “transaction brokerage,” or “limited representation,” stop and ask questions. Demand a written explanation of exactly who the agent represents. Second, never share your maximum budget or your lowest acceptable price with an agent until you have verified their representation in writing. A dual agent can use that information against you. Third, if you are selling, be wary of an agent who brings in their own buyer without another agent involved. That is a huge red flag for dual agency. You can refuse to allow it. In many states, you have the right to insist that the agent represent you exclusively, and that the buyer find their own representation.

The real danger is not just losing a few thousand dollars on negotiation. It is the loss of trust and the hidden costs that follow. A dual agent might steer you to accept a deal with hidden defects because they want the commission. You could end up with a house with foundation problems or a sale price far below market value. The National Association of Realtors has reported that dual agency is linked to lower sale prices for sellers and higher purchase prices for buyers. That is money directly out of your pocket.

You are old enough to know that no one works for free. When someone offers to represent both sides, ask yourself whose interests they are really serving. In a typical real estate transaction, the agent’s commission is usually 5 to 6 percent. A dual agent gets the entire commission from one deal, which is a strong incentive to close quickly and move on. Your job is to slow down, ask hard questions, and never sign a dual agency agreement unless you absolutely understand and accept the consequences. If an agent pressures you to agree without clear answers, walk away. There are honest agents out there who will represent you alone. Your home and your savings deserve nothing less.