A new housing market study from Zillow suggests many home sellers across the United States may have received lower sale prices because of dual agency transactions and off-MLS home listings.
According to the report, sellers involved in dual agency deals lost an estimated $1.49 billion over the past three years. At the same time, homeowners who sold properties privately without listing on the Multiple Listing Service (MLS) lost another estimated $1.36 billion.
The findings are drawing attention to how certain selling strategies may affect final home sale prices, especially in a market where affordability, inventory, and buyer demand continue shifting.
What Is Dual Agency in Real Estate?
Dual agency happens when the same real estate agent represents both the buyer and the seller in a transaction.
In theory, dual agency can simplify communication and speed up the transaction process. However, critics argue that it may create conflicts of interest because the agent is expected to negotiate for both sides at the same time.
Zillow’s analysis suggests that sellers in these situations often received lower sale prices compared to similar homes sold with separate buyer and seller representation.
The report estimated that sellers lost around $2,165 per home on average in dual agency transactions.
Why Dual Agency May Affect Home Prices
The study points to financial incentives as one possible reason sellers may receive lower prices during dual agency transactions.
When two separate agents are involved, commissions are typically divided between both sides. In dual agency deals, one agent may keep the full commission.
Because of that structure, some critics believe there may be less motivation to aggressively negotiate a higher price for the seller if closing the transaction quickly becomes the larger financial benefit.
While many agents follow professional standards and ethical guidelines, the report argues that the business structure itself may still influence transaction outcomes.
California Saw the Largest Seller Losses
According to Zillow’s research, California recorded the highest total losses connected to dual agency transactions during the study period.
Estimated seller losses included:
- California: $533 million
- Florida: $217 million
- New York: $146 million
- New Jersey: $115 million
Large housing markets with higher home prices naturally produced bigger dollar impacts.
States with active investment activity and strong population growth also saw significant numbers of dual agency transactions.
Off-MLS Listings Also Reduced Seller Returns
The study also examined homes sold outside the Multiple Listing Service, commonly called off-MLS or private listings.
According to Zillow, homeowners who skipped the MLS sold their homes for approximately 1.3% less than similar properties listed publicly.
Over three years, those reduced sale prices added up to an estimated $1.36 billion in losses for sellers nationwide.
The average seller loss for off-MLS properties was roughly $4,230 per home.
Why Public MLS Listings Matter
The Multiple Listing Service is the primary system real estate professionals use to market homes to buyers and agents.
Listing a property on the MLS typically increases visibility by exposing the home to:
- More buyers
- More agents
- More online platforms
- More competitive offers
When homes are marketed privately or off-market, fewer buyers may see the property, which can reduce competition and limit bidding activity.
In many cases, lower exposure can result in lower final sale prices.
Lower-Priced Homes Saw Bigger Pricing Penalties
The Zillow report found that sellers in lower-priced housing segments were affected the most by off-MLS transactions.
These homes typically sold for around 2.2% less than comparable publicly listed properties.
That pricing gap was significantly larger than the national average.
For many households, especially first-time sellers or middle-income homeowners, even small percentage differences can represent thousands of dollars in lost equity.
Communities of Color Experienced Larger Gaps
The study also highlighted uneven impacts across neighborhoods.
According to the report:
- Sellers in communities of color lost around 1.9% on off-MLS sales
- Majority white neighborhoods saw an average penalty closer to 1.1%
Researchers say these findings raise concerns about housing access, transparency, and equal opportunity in real estate transactions.
Fair housing advocates have long argued that broader public exposure through the MLS helps create more competitive and transparent housing markets.
The Pattern Appeared Consistently Over Multiple Years
One important part of Zillow’s findings is that the pricing penalties were not limited to a single year or unusual market period.
The same patterns appeared consistently throughout:
- 2023
- 2024
- 2025
That consistency suggests the issue may be structural rather than temporary.
Even as inventory levels changed and bidding wars cooled in some markets, sellers using dual agency or off-market selling methods still tended to receive lower prices.
Inventory Growth Did Not Eliminate the Gap
During the study period, many housing markets experienced rising inventory levels, especially in parts of the South and West.
Normally, larger inventory levels reduce buyer competition and soften bidding wars.
However, Zillow’s data showed that off-MLS listings still underperformed compared to publicly marketed homes despite those market changes.
This suggests that exposure and competition remain important factors in maximizing home sale prices even in slower housing conditions.
Private Listings Continue Growing in Some Markets
Despite the findings, private listings and off-market transactions continue expanding in some areas.
Some sellers prefer private sales because they believe the process offers:
- More privacy
- Faster closings
- Reduced public exposure
- Fewer showings
- Direct negotiations
Luxury markets in particular often see higher levels of off-market activity.
However, the report suggests that sellers should carefully weigh convenience against the possibility of receiving a lower sale price.
Real Estate Industry Debate Continues
The findings arrive as the real estate industry continues adjusting to major commission rule changes following legal settlements involving the National Association of REALTORS.
Many industry professionals are debating how transparency, commissions, and buyer representation should work moving forward.
Supporters of dual agency argue that experienced agents can fairly represent both parties while simplifying transactions.
Critics believe separate representation provides stronger negotiation protection for both buyers and sellers.
Home Sellers May Need to Compare Selling Strategies Carefully
Housing experts say sellers should fully understand the pros and cons of every listing strategy before putting a home on the market.
Questions sellers may want to ask include:
- Will the home appear on the MLS?
- How many buyers will see the listing?
- How is the agent compensated?
- Is there dual representation involved?
- What marketing plan will be used?
Understanding these details can help homeowners make more informed decisions before signing listing agreements.
Housing Market Conditions Are Changing
The report comes during a period of major transition for the U.S. housing market.
Higher mortgage rates, affordability pressures, and slower sales activity have changed buyer behavior in many regions.
As competition between sellers increases, pricing strategy and market exposure may become even more important.
Homes that receive maximum visibility often have a better chance of attracting multiple buyers and stronger offers.
Transparency Remains Important for Sellers
While every transaction is different, Zillow’s report reinforces the importance of transparency in the home-selling process.
For many homeowners, a property represents their largest financial asset.
Because of that, even modest differences in sale prices can have a meaningful impact on household wealth, equity growth, and future financial planning.
As housing market conditions continue evolving, sellers are likely to pay closer attention to how listing methods, representation structure, and marketing exposure affect final sale outcomes. For direct financing consultations or mortgage options for you visit 👉 Nadlan Capital Group.
