Dual Agency

· 2 min read
Dual agency is when one real estate agent (or brokerage) represents both the buyer and seller in the same transaction — and it’s as tricky…

Dual agency is when one real estate agent (or brokerage) represents both the buyer and seller in the same transaction — and it’s as tricky as it sounds.

Imagine hiring a lawyer who also represents the person suing you. That’s essentially dual agency. One agent is supposed to get the buyer the lowest price while also getting the seller the highest price. Those goals directly conflict.

Dual agency is legal in most states, but eight states ban it outright, including Alaska, Colorado, Florida, Kansas, Maryland, Texas, Vermont, and Wyoming.

How Does Dual Agency Happen?

The most common scenario: you attend an open house without your own agent, love the home, and ask the listing agent to write your offer. Now that agent represents both sides. It can also happen when two agents at the same brokerage are involved — called “designated agency” in some states.

The agent must disclose dual agency in writing, and both parties must consent. But consent doesn’t mean it’s a good idea.

Why Most Buyers Should Avoid It

In a dual agency arrangement, the agent becomes a neutral facilitator. They can’t:

  • Tell you the seller would accept a lower offer
  • Advise you on how much to offer
  • Share the seller’s motivation for selling
  • Advocate for your interests over the seller’s

On a $350K home, the difference between skilled negotiation and neutral facilitation could be $10,000–$20,000. That’s real money you’re leaving on the table.

Watch out for: Agents who push dual agency by suggesting you’ll save on commissions. Even if the agent reduces their total fee, you’re losing independent representation in the biggest purchase of your life. The commission savings rarely offset poor negotiation outcomes. Get your own buyer’s agent.

Is dual agency ever a good idea?

Rarely. The one scenario where it’s defensible: you’re an experienced buyer, the deal is straightforward, and the agent agrees to a significant commission reduction that benefits you directly. Even then, you should have a real estate attorney review the contract independently. For most buyers — especially first-timers — the risks outweigh any savings. Check our glossary to understand other agency relationships and use the mortgage calculator to know your numbers before engaging with any agent.