Selling with one agent on both sides cost home sellers $1.49 billion over three years

Rhea-AI Summary

Zillow (NASDAQ:Z) released research showing U.S. home sellers in same-agent dual agency deals were estimated to lose $1.49 billion from 2023–2025, while off-MLS listings cost sellers $1.36 billion, typically 1.3% or about $4,230 less than comparable MLS-listed homes.

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News Market Reaction – Z

On May 14, the day this news came out, Z closed 3.01% below the previous close.

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Market Context

This announcement details Zillow’s analysis of more than 15 million transactions, estimating seller ...

Analysis

This announcement details Zillow’s analysis of more than 15 million transactions, estimating seller losses of $1.49 billion from dual-agency deals and $1.36 billion from off-MLS sales over three years. It underscores ongoing concerns about transparency, particularly for lower-priced homes and communities of color facing penalties up to 2.2%. In context with recent market and rent reports, investors may watch how such findings influence listing practices, consumer behavior, and potential policy or industry responses.

Key Figures

Dual-agency seller losses: $1.49 billion Off-MLS seller losses: $1.36 billion Off-MLS price penalty: 1.3% +5 more

Dual-agency seller losses

$1.49 billion

Combined loss over three years for same-agent dual agency sellers

Off-MLS seller losses

$1.36 billion

Combined loss over three years for off-MLS listings

Off-MLS price penalty

1.3%

Typical discount versus homes listed on the MLS

Loss per dual-agency home

$2,165

Estimated loss per home in dual-agency transactions

Lower-tier seller loss

2.2%

Typical loss versus similar homes listed on the MLS

Communities of color loss

1.9%

Typical penalty in majority people-of-color neighborhoods

Majority white loss

1.1%

Typical penalty in majority white neighborhoods

Transactions analyzed

15 million

Number of home sales analyzed from 2023 to 2025

Historical Context

5 past events · Latest: May 06

5 events

1. May 06

   Q1 2026 earnings

   24h Move

   -1.9%

   Reported higher revenue, positive net income and EBITDA margins for Q1 2026.

2. May 06

   Housing market report

   24h Move

   +2.3%

   April report showed rising inventory and stalled sales amid higher mortgage rates.

3. May 05

   Platform collaboration

   24h Move

   +2.3%

   Announced listing collaboration with Realtor.com to expand Preview listing reach.

4. Apr 23

   Market speed analysis

   24h Move

   -3.3%

   Analysis of how quickly homes sell and the share going above list price.

5. Apr 21

   Rent relief report

   24h Move

   -2.4%

   Report on slowing rent growth and improved renter affordability versus income.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

dual agency, multiple listing service (mls), fiduciary duty, zestimate, +4 more

8 terms

dual agency financial

"Home sellers in same-agent dual agency transactions — where one agent represented both buyer"

Dual agency occurs when the same advisor, broker, or firm represents two parties with opposing interests in a transaction—such as a seller and a buyer, or a company and its investor. It matters to investors because one person balancing both sides can create conflicts of interest that may affect price, disclosure, or the fairness of deal terms; think of it like a referee who is also coaching one of the teams, making impartial judgment harder.

multiple listing service (mls) technical

"Sellers who listed privately — not on the Multiple Listing Service (MLS) — lost nearly as much."

A multiple listing service (MLS) is a shared database that collects and displays securities available for trading across different brokerages or exchanges, like a common catalog that shows what’s for sale, at what price, and by whom. For investors it matters because MLS-type systems improve transparency, help buyers find the best price and increase the pool of potential sellers and buyers, which can lower trading costs and boost liquidity.

fiduciary duty regulatory

"buyer they represent, regardless of whether doing so is in the best interest of the seller they have a fiduciary duty to protect."

Fiduciary duty is the legal and ethical obligation of someone who manages money or makes decisions on behalf of others to act honestly, loyally, and in the best financial interest of those people. Think of it like a trusted guardian managing a household budget who must put the family's needs ahead of their own; for investors, it reduces the risk of conflicts of interest, mismanagement, or self-dealing and helps protect their assets and returns.

zestimate technical

"Zillow started with the Zestimate a full three months prior to sale."

An online automated estimate of a residential property's current market value calculated from public records, user-submitted details, and algorithmic models. Think of it like a quick, computerized appraisal or a car's Kelley Blue Book price: it gives a fast snapshot of what a house might sell for. Investors use it as a preliminary signal of housing market trends, comparable values and demand, but it should be checked against professional appraisals and local knowledge.

zillow home value index technical

"adjusted the Zestimate using movements in the Zillow Home Value Index at the ZIP code level."

Zillow Home Value Index is Zillow’s smoothed, algorithm-based estimate of the typical single-family home value for a neighborhood, city, or metro area that blends recent sales and listing data while reducing short-term swings. Investors use it as a quick indicator of housing market trends—like a rolling average price tag—because shifts can signal changing demand, mortgage and credit risk, local consumer wealth, and potential impacts on real estate returns.

arms-length transactions financial

"excluded new construction homes, foreclosure sales, auction sales, non-arms-length transactions, bank/corporate"

An arms-length transaction is a deal made between independent parties who act in their own self-interest and have no special relationship that could sway the price or terms. Think of it like buying a used car from a stranger at market price rather than getting a family discount: it helps investors trust that the reported price and terms reflect fair market value and aren’t distorted by hidden ties or conflicts of interest.

foreclosure sales financial

"excluded new construction homes, foreclosure sales, auction sales, non-arms-length transactions"

A foreclosure sale is the public auction or resale of property that a lender takes back after a borrower fails to make required payments, similar to a bank selling a repossessed car to recover what it’s owed. Investors watch these sales because they can reveal distressed assets sold at discounts, and trends in foreclosure activity can signal credit stress in real estate markets that affects property values, mortgage-backed securities and bank balance sheets.

quitclaims regulatory

"bank/corporate/government acquisitions, invalid quitclaims and outlier sale prices"

A quitclaim is a legal transfer where a person or company gives whatever ownership interest they have in property to another party without promising the interest is clear or free of problems. For investors, a quitclaim can move assets or rights onto or off a company’s balance sheet quickly but carries title or liability risk because the giver makes no guarantees—think of handing over a car 'as‑is' without any warranty.

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New Zillow data finds sellers consistently lose when their home is hidden from buyers or when one agent holds both sides of the deal

• Home sellers in same-agent dual agency transactions — where one agent represented both buyer and seller — lost a combined $1.49 billion over three years, according to a new Zillow analysis.
• Home sellers who listed off the MLS lost a combined $1.36 billion over three years, typically selling for 1.3% less than sellers who listed publicly.
• The price penalties from dual agency and off-MLS listings have appeared in every year Zillow has analyzed, showing a consistent pattern of harm.

SEATTLE, May 14, 2026 /PRNewswire/ -- Home sellers who sold to a buyer represented by the same agent lost a combined $1.49 billion over the past three years, according to new Zillow® research. Sellers who listed privately — not on the Multiple Listing Service (MLS) — lost nearly as much. In both cases, the agent has a financial reason to put their own and their brokerage's interests ahead of the seller's. And in both cases, the data shows sellers pay the price in what may be the largest financial transaction of their lives.

When one agent represents both the buyer and the seller, that agent's economic incentives shift. The additional commission earned by pushing a seller's price up is generally modest, while the potential cost of selling to another buyer and splitting the commission with another agent is significant. That dynamic can incentivize certain agents to close a deal with a buyer they represent, regardless of whether doing so is in the best interest of the seller they have a fiduciary duty to protect.

"Sellers deserve an agent whose only job is to get them the best possible price, and a listing that every buyer in the market can see. When either of those things is missing, the data keeps telling us that sellers lose," said Mischa Fisher, chief economist at Zillow. "Buyers searching without the right connections never even see the homes they're being shut out of. It's a velvet rope system designed to enrich brokerages, and sellers are subsidizing it."

The estimated loss per home from sellers in dual-agency transactions was about $2,165. Aggregate dual-agency losses were largest in California, where sellers in dual-agency deals lost an estimated $533 million over the study period. Florida sellers lost $217 million, New York sellers lost $146 million and New Jersey sellers lost $115 million.

The same pattern holds for off-MLS listings. Sellers who chose not to ever list their homes on the MLS — keeping them hidden from a swath of buyers — typically sold for 1.3% less than MLS-listed sellers, losing a combined $1.36 billion over three years. The typical loss was roughly $4,230.

"I can't tell you how many buyers I've worked with who see a privately-listed home only after it's been sold, and tell me they would have paid tens of thousands of dollars more for that house. It's discouraging for buyers to do everything right, only to find out homes were hidden from view all along," said Cory Tanzer, a Chicago-based agent with Option Premier. "From my experience, it's been clearly proven that the way to get the best price is through maximum exposure. Anyone who tells you otherwise probably has a different motive than what's best for their clients."

The off-MLS price penalty hit sellers in the lower price tier the hardest, who typically lost 2.2% compared to sellers of similar homes listed on the MLS. The harm also fell unevenly by neighborhood. Sellers in communities of color — neighborhoods where the majority of households are headed by people of color — typically lost 1.9%, compared to 1.1% in majority white neighborhoods.

Neither finding appears to be a short-term anomaly. Both price penalties existed in the data for all the study years of 2023, 2024 and 2025. That persistence is notable given that rising inventory over the study period has given buyers more options and made bidding wars less common — conditions that would be expected to narrow the off-MLS penalty, in particular.

Both findings point to the same underlying principle. Whether a home is hidden from some or all buyers or negotiated by an agent with divided loyalties, when the housing market is less transparent and less competitive, American home buyers and sellers bear the cost.

Methodology
Zillow analyzed more than 15 million transactions from 2023 to 2025, with about 6.8 million and 6.2 million meeting our strict inclusion criteria for evaluating dual agency and private listing effects, respectively. Of the home sales that were analyzed, dual agency transactions accounted for 4.7% of the sample, while private home sales accounted for 1.9%.

Dual-agency transactions were defined as having the same individual agent represent both the buyer and the seller.

Private listings were defined as sales that appeared to be marketed privately and submitted to the MLS only after a purchase contract was in place. To classify these sales, Zillow identified sales that were reported pending or closed with at most one day active and with a buyer and seller represented by the same agent or by agents within the same brokerage office.

Zillow also parsed off-MLS transactions, which were never published to the public MLS after being privately listed. Zillow further narrowed these "off-MLS" transactions into a much smaller set — those with a previous sale in the MLS, which allowed us to verify property details. Only this subset among off-MLS transactions was included in the analysis.

In both sets —private listings and validated off-MLS transactions — Zillow excluded new construction homes, foreclosure sales, auction sales, non-arms-length transactions, bank/corporate/government acquisitions, invalid quitclaims and outlier sale prices (below $10,000 or above $10 million).

To determine the impact of listing strategy on the sale price, Zillow started with the Zestimate a full three months prior to sale. If a home was listed at this time, it was excluded (validation was conducted to ensure this exclusion was not driving results). To strip out the effect of market-level price movements during this three-month period, Zillow adjusted the Zestimate using movements in the Zillow Home Value Index at the ZIP code level. The ratio of the sale price to the Zestimate-based expectation was then taken. The median of this ratio was compared between listing groups: dual-agent transactions compared to transactions with separate agents, and the on-MLS listings compared to the private listings and validated off-MLS listings.

The estimated total net loss to sellers uses the shares of dual-agency sales and private listings in our sample and the median percentage losses on the total transaction value for all homes in the sample. Due to estimation at the median, subcategory totals may not sum to the parent total. The exclusion of transactions that do not meet our standards for data completeness means the reported values are an underestimate of the full degree of harm nationally.

About Zillow Group
Zillow Group, Inc. (Nasdaq: Z and ZG) is reimagining real estate to make home a reality for more and more people.

As the most visited real estate app and website in the United States, Zillow connects hundreds of millions of consumers with innovative technology, trusted agents and loan officers, and seamless digital solutions. With industry-leading tools and resources, Zillow supercharges real estate professionals so they can grow their businesses and deliver exceptional client experiences. For renters and housing providers, Zillow offers not only a robust marketplace but a set of end-to-end products and services to streamline applications, leases, payments and more.

Zillow's ecosystem spans the entire home journey — from dreaming and shopping to renting, buying, selling and financing.

Zillow Group's affiliates, subsidiaries and brands include Zillow®, Zillow Premier Agent®, Zillow Home Loans®, Zillow Rentals®, Zillow® New Construction, Trulia®, StreetEasy®, Out East®, HotPads®, Follow Up Boss®, ShowingTime®, dotloop® and Zillow® Closing.

All marks herein are owned by MFTB Holdco, Inc., a Zillow affiliate. Zillow Home Loans, LLC is an Equal Housing Lender, NMLS #10287 (www.nmlsconsumeraccess.org). © 2026 MFTB Holdco, Inc., a Zillow affiliate.

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SOURCE Zillow

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What did Zillow (NASDAQ:Z) find about dual agency home sale losses from 2023 to 2025?

Zillow estimated that U.S. sellers in same-agent dual agency transactions lost about $1.49 billion from 2023–2025. According to Zillow, the typical seller in these deals received roughly $2,165 less than similar homes sold with separate agents representing buyer and seller.

How much did off-MLS listings cost home sellers in Zillow’s May 14, 2026 report on Z?

Zillow estimated off-MLS home sales cost U.S. sellers a combined $1.36 billion over three years. According to Zillow, these homes typically sold for 1.3%, or about $4,230, less than comparable properties listed on the MLS and fully exposed to buyers.

Which states saw the largest estimated seller losses from same-agent dual agency in Zillow’s Z analysis?

Zillow’s analysis estimated the largest aggregate dual agency seller losses in California at $533 million from 2023–2025. According to Zillow, estimated losses were $217 million in Florida, $146 million in New York and $115 million in New Jersey over the same period.

How were lower-priced homes and communities of color affected in Zillow’s May 2026 MLS research on Z?

Zillow found off-MLS pricing effects were stronger for some groups. According to Zillow, lower price-tier sellers typically lost 2.2%, while sellers in communities of color lost about 1.9%, compared with roughly 1.1% losses in majority white neighborhoods when not fully listed on the MLS.

What share of U.S. sales involved dual agency or private listings in Zillow’s 2023–2025 Z study?

Zillow reported that dual agency transactions made up about 4.7% of analyzed home sales between 2023 and 2025. According to Zillow, private home sales, which were briefly or privately marketed before MLS entry, accounted for roughly 1.9% of the study sample.

What methodology did Zillow (Z) use to estimate dual agency and off-MLS price impacts?

Zillow analyzed more than 15 million transactions from 2023–2025, using the Zestimate three months before sale as an adjusted benchmark. According to Zillow, it excluded new construction, foreclosures, auctions and other atypical or incomplete records to isolate effects of dual agency and listing strategy.