Dual Agency: How Your Real Estate Agent May Be Working Against You

You’re selling your home. You’re buying your next one. You want a smooth transaction, and the real estate agent on the other side seems competent and friendly. Then they suggest they can “represent both sides” – you and the buyer – to save everyone time and money. It sounds convenient. It sounds efficient. It can also cost you thousands of dollars and leave you legally blind to the worst deal of your life.

Dual agency is precisely what it says: one agent or one brokerage represents both the seller and the buyer in the same real estate transaction. In many states it is legal, but only with written disclosure and informed consent from both parties. The catch is that informed consent is rarely informed. Agents gloss over the reality that once they become a dual agent, they cannot give either side full loyalty. They cannot negotiate on your behalf in the way you expect. They cannot tell you the seller’s bottom line or the buyer’s true maximum offer, because that would betray the other client. So the agent becomes a glorified messenger, shuffling paperwork while your most important financial decisions are made in the dark.

The risk is not theoretical. When you hire a seller’s agent, that person has a fiduciary duty to you: to get the highest price, best terms, and full disclosure of any defects. When you hire a buyer’s agent, that person owes you the lowest price, full market intelligence, and unbiased advice about the property. A dual agent owes both duties simultaneously – which is impossible. The moment you reveal your absolute bottom line, the agent cannot use it to your advantage because they must also protect the other side. The result is a transaction that settles somewhere in the middle, often closer to the price that benefits the agent’s commission, not your pocket.

Middle‑class Americans in the 45‑64 age bracket are especially vulnerable here. You may be selling a family home to downsize or buying a retirement property. These transactions often involve significant equity or savings. You may trust an agent you’ve worked with before, or an agent who seems to have the best interests of both parties at heart. But trust is exactly what dual agency exploits. The agent collects a double commission – sometimes 5% or 6% of the sale price instead of splitting it with another agent. That can mean tens of thousands of dollars flowing to one person who has promised to look out for two opposing interests.

Watch for the red flags. The first is when your listing agent suggests they also represent the buyer. They may claim it makes the deal “easier” or that they already know the buyer well. Second, look at the brokerage. Some large firms have a policy where agents inside the same company cannot represent both sides, but others encourage it. If your agent works for a brokerage that also employs the buyer’s agent, you may be in a form of “designated agency” – where two agents from the same company are supposed to work independently – but that arrangement still reduces competition and can create pressure to close the deal fast. Third, pay attention to how much information the agent shares with you. If they avoid giving you comps on similar sales, or they steer you away from a home inspection, or they seem eager to accept a low offer without countering, question it. That is not a neutral messenger; that is a conflicted advisor.

What can you do? Before you sign any listing agreement or buyer representation agreement, ask point blank: “Will you ever act as a dual agent in this transaction? Under what circumstances?” If the agent says “only if you agree,” ask for a written explanation of exactly what duties they will and will not perform. Better yet, insist on a clause that prohibits dual agency entirely. Many states allow you to reject dual agency in writing. If an agent refuses to agree, find another agent. There are plenty of ethical, single‑sided agents who want your full loyalty.

Also, never sign a dual agency disclosure form on the spot. Take it home. Read it. Understand that once you sign, your agent becomes a facilitator, not an advocate. You lose the right to confidential strategy. You lose the right to have your agent point out weaknesses in the other side’s position. And you likely lose thousands of dollars that could have stayed in your pocket or gone to a better home.

Dual agency benefits the agent far more than the client. For middle‑class homeowners, a real estate transaction is often the biggest financial move you will make. Do not hand over your leverage to someone who is paid to be neutral. Demand an agent who works solely for you, and treat dual agency as the conflict of interest it truly is. Your future retirement, your equity, and your peace of mind depend on it.