Zillow data reveals costly real estate conflict of interest

May 26, 2026 - 00:59

A new analysis of Zillow data has exposed a widespread practice in the real estate industry that could be costing home sellers thousands of dollars. The conflict of interest centers on dual agency, a situation where a single real estate agent represents both the buyer and the seller in the same transaction.

According to the data, homes sold through dual agency tend to sell for significantly less than those where the buyer and seller have separate representation. Researchers found that sellers in dual agency deals often walk away with a lower final price, sometimes by as much as two to three percent less than comparable properties. On a median-priced home, that difference can easily exceed ten thousand dollars.

The core problem is that the agent's fiduciary duty is split. While the agent is legally required to get the best possible price for the seller, they also have a duty to the buyer to secure the lowest price. Critics argue that this inherent conflict often leads to a compromise that favors the agent's own commission over the seller's profit. The agent gets paid either way, but the seller loses out on potential equity.

Industry watchdogs have long warned about this practice, but the Zillow data provides concrete evidence of its financial impact. For sellers, the takeaway is clear: insist on separate representation. While dual agency might seem convenient, the numbers suggest it is rarely a good deal for the person selling the home.