What's Happening?
A recent study by Zillow has highlighted significant financial losses for home sellers who engage in dual-agent transactions and private listings. Over the past three years, sellers in states like California, Florida, New York, and New Jersey have collectively
lost $1.5 billion. The study found that homes sold as private listings, which are not listed on a Multiple Listing Service (MLS), typically sold for 1.3% less than comparable MLS-listed homes, resulting in an average loss of $4,230 per sale. Dual-agent transactions, where one agent represents both buyer and seller, resulted in an average loss of $2,165 per transaction. The study analyzed approximately 15 million transactions from 2023 to 2025, excluding new constructions, foreclosures, and auctions. It suggests that dual agency shifts agent incentives, potentially disadvantaging sellers.
Why It's Important?
The findings of this study have significant implications for the real estate market, particularly for sellers who may be unaware of the financial drawbacks associated with dual agency and private listings. The losses incurred by sellers highlight the need for greater transparency and regulation in real estate transactions. The study's results could influence policy changes, as seen in Washington state, where a new law banning private listings will take effect in June 2026. This could lead to similar legislative actions in other states, aiming to protect sellers and ensure fair market practices. The financial impact on sellers also underscores the importance of informed decision-making when choosing how to list a property.
What's Next?
In response to these findings, there may be increased scrutiny and potential regulatory changes in the real estate industry. States like Illinois, Hawaii, and Connecticut are already considering legislation to restrict private listings. Real estate professionals and associations might also push for more education and resources to help sellers understand the implications of dual agency and private listings. Additionally, the industry could see a shift towards more transparent practices, with platforms like Zillow and Realtor.com working to enhance market visibility and reduce the prevalence of private listings.
