"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."
"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 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."
""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."
Home sellers represented by the same agent as the buyer lost a combined $1.49 billion over three years. Sellers who listed privately, not on the MLS, lost a combined $1.36 billion over three years. In typical cases, off-MLS listings sold for about 1.3% less than publicly listed homes. The price penalties associated with dual agency and off-MLS listings appeared in every year analyzed, showing a consistent pattern of harm. The incentives in dual agency can shift because the additional commission from pushing a higher price is generally modest, while the potential cost of not selling to another buyer and splitting commission with another agent can be significant. Hidden listings reduce buyer access and can prevent sellers from achieving the best possible price.
Read at Boston Condos For Sale Ford Realty
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