How to Spot a Real Estate Agent Who Is Working Against You Behind the Scenes

You are selling your home. You interview three agents. One tells you she already has a buyer lined up. She says it will be a fast, easy sale with no open houses and no hassles. Sounds great, right? Not so fast. What she may not be telling you is that she represents both you and that buyer at the same time. That is called dual agency, and in many states it is legal only if both parties sign a written consent. Too often, agents skip the permission, downplay the risks, or simply never mention it. The result: you get a worse deal, and the agent pockets both commissions.

Dual agency sounds harmless. The agent is just bringing two sides together. But in practice, the same person cannot negotiate vigorously for both the seller who wants a high price and the buyer who wants a low price. When the agent owes loyalty to both, she owes loyalty to neither. You lose your leverage. The agent’s incentive shifts from getting you top dollar to closing the deal fast. She might discourage you from countering a low offer, or she might tell the buyer that you are motivated and willing to come down. You never know what she is saying on the other side of the phone.

Worse, some agents practice what is called “undisclosed dual agency.” They hide the fact that they are working both ends. They claim to represent you exclusively while secretly feeding information to the buyer. This is illegal in every state, but it happens all the time. The agent might say, “I have a client who is very interested, but I can’t tell you anything about them.” Meanwhile, she is telling that client your bottom line, your moving deadline, and the fact that you are desperate to sell before your kids start school. That knowledge lets the buyer lowball you with confidence.

How do you protect yourself? First, always ask upfront: “Do you currently represent any potential buyers for my property?” If the answer is yes, ask for a written disclosure and a meeting with both parties. Insist on a “designated agency” agreement, which assigns a different agent from the same brokerage to each side. That way, you still have someone fighting for your interests. If the agent hesitates or says it is not necessary, walk away. A reputable agent will be transparent about their relationships.

Another dirty trick is the “pocket listing.” An agent takes your listing but does not put it on the multiple listing service (MLS). She keeps it in her back pocket, showing it only to her own buyers. She then acts as a dual agent and collects full commission. Meanwhile, your house gets less exposure and fewer offers. You end up selling for less than market value. The agent wins. You lose. Always confirm in writing that your listing will be placed on the MLS within 24 hours.

Then there is the “steering” scam. An agent who works for a brokerage that also has a mortgage or title company may steer you toward those services without telling you about better deals elsewhere. This is called a kickback or referral fee, and it is illegal under federal law (RESPA). But agents get around it by claiming they are just “recommending a trusted partner.” The truth is, they may be earning a finder’s fee that inflates your closing costs. Ask every agent: “What arrangements do you have with lenders, inspectors, or title companies? Are you receiving any compensation for referrals?” If they dodge the question, consider it a red flag.

Finally, watch out for agents who pressure you into a quick decision. They might tell you that another buyer is making an offer and you have to decide right now. That is a classic high-pressure tactic to prevent you from doing your own homework. In a dual-agency scenario, the so-called “other buyer” might not even exist. The agent is manufacturing urgency to get you to accept a lower price so she can close the deal and move on.

The bottom line: Real estate agents are not all bad, but the ones who hide conflicts of interest can cost you tens of thousands of dollars. Middle-class Americans, especially those aged 45 to 64 who are selling a home to downsize or buy a retirement property, are prime targets. You have equity. You have a timeline. And you have less tolerance for games. Do not allow an agent to represent both sides without your explicit, informed consent. Get everything in writing. Ask the hard questions. And if something feels off, fire the agent. There are plenty of honest ones out there. Your hard-earned money is too valuable to hand over to someone who is quietly working against you.