Dual agency pros, cons, and considerations

In most real estate transactions, there’s a buyer’s agent and a seller’s agent. However, certain circumstances allow the same agent to represent both the buyer and the seller. This is known as dual agency, and it is regulated differently depending on state laws.

Do dual agents benefit both the buyer and seller? How does this even work? We’ll dive deeper into the intricacies of dual agency to help you decide whether it’s      the right fit for you.

Key takeaways:

• Dual agency is when a single real estate agent represents the buyer and seller in a real estate transaction. This requires clear disclosure, and the agent must remain neutral during the transaction.
• A dual agent can simplify communication and speed up the transaction. However, it may reduce negotiation and can be hampered by potential conflicts of interest.
• Dual agency is illegal in several states. If interested, be sure to explore your local laws before moving forward with a dual agent.

What is dual agency?

Dual agency is when a single real estate agent – or sometimes a single real estate brokerage – represents both the buyer and the seller in the same real estate transaction.

Since both parties have different goals, dual agency will require clear disclosure and written consent in states where dual agency is allowed. A dual agent can’t advocate exclusively for one side and must remain neutral. The dual agent must also avoid offering advice that disadvantages one party in the transaction.

As Gennady Litvin, managing attorney of Moshes Law shares, “Dual agency changes the relationship because the agent is no longer acting as the exclusive negotiator for either the buyer or the seller. In New York, for example, a dual agent can participate only with informed written consent, and both sides should understand that the agent cannot provide the same undivided loyalty, negotiation strategy, and advocacy that a dedicated agent would provide.”

Potential dual agency benefits

A potential benefit of dual agency is simplified communication since one agent is coordinating both sides of the transaction. Some buyers and sellers even report that the process moves quicker when fewer people are involved.

Simplified communication and a potential faster transaction are both strong benefits to a buyer in love with a specific property and a seller looking to close quickly. Transparency can go a long way to expedite a real estate transaction if both parties are not seeking individual guidance or negotiation support. Any potential benefit, however, depends on individual comfort levels and state rules.

Potential dual agency drawbacks

While dual agency can feel convenient, it comes with meaningful limitations that buyers and sellers should understand prior to agreeing to the arrangement.

Jacqueline A. Salcines, P.A., explains that dual agency fundamentally changes the agent’s role. “Normally, if you have your own agent, that agent is supposed to look out for your best interests, help you negotiate, and give advice based on your goals. In a dual agency situation, the agent has to stay neutral. They cannot fully favor one side over the other or share private information like the lowest price a seller would take or the highest price a buyer would pay.”

Possible reduced advocacy and negotiation support: A core part of an agent’s role is to advocate for the client’s interests – whether that means helping a buyer structure a competitive offer or supporting a seller in evaluating pricing and terms. In dual agency, however, a single agent cannot favor one side over the other. That means they cannot:

• Suggest how high or low to price a home
• Recommend how much a buyer should offer
• Advise on negotiation strategies
• Push for terms that favor one party at the other’s expense

Instead, a dual agent must remain impartial. They can convey factual information, provide documents, and help manage the process, but they can’t take a strong negotiating stance for either side.

Limits on sharing information: Confidentiality rules are especially important in dual agency. A dual agent cannot share information from one party that could influence the other side’s position. For example, they cannot disclose:

• A buyer’s maximum budget
• A seller’s openness to certain concessions
• Motivation to move quickly
• Details that could affect pricing or leverage

Explain that these restrictions help protect both clients, but they also reduce the agent’s ability to guide the transaction with the same level of tailored insight they could offer in a traditional single-agency relationship.

Potential conflicts of interest: Because the agent represents both sides, their responsibilities must be carefully balanced. Even when everyone involved has the best intentions, the structure of dual agency can create moments where the agent cannot give the kind of personalized advice one or both parties may want. These limitations are not inherently negative, they’re simply part of how dual agency functions to protect both parties.

Why some clients choose dedicated representation instead

Many buyers and sellers prefer dedicated representation over dual agency because it allows them to receive full, individualized guidance throughout the transaction. With separate agents, each party can receive specific pricing and negotiation advice, confidential information can be used strategically, and advocacy is not limited by neutrality requirements.

Is dual agency illegal in certain states?

Dual agency is legal in many states, regulated or restricted in some, and prohibited in others. In states where dual agency is allowed, buyers and sellers must typically provide written consent before proceeding. If you are interested in dual agency, be sure to confirm that it is legal according to local laws and regulations before proceeding.

Dual agency is currently illegal in the following states:

• Alaska
• Colorado
• Florida
• Kansas
• Maryland (unless you sign a document giving permission to the real estate agent)
• Texas
• Vermont
• Wyoming

How does the commission work with dual agency?

Usually, the seller pays the commission in a real estate transaction, although commission structures vary by brokerage and market. In a dual agency arrangement, one agent (or brokerage) typically receives the full commission since there is no second agent involved.

To ensure that expectations are transparent, buyers and sellers should discuss commission structure with their agent in advance.

What is a dual agent vs. a designated agent?

Similar to the common mix-up of a real estate broker and agent, a dual agency and a designated agent may sound similar, but these roles actually perform different functions. A dual agency is where one agent represents both parties, while a designated agency occurs when two different agents from the same brokerage each represent one side.

Imagine both the buyer’s and seller’s agents work for the same brokerage. Unlike a dual agency where one agent must remain neutral, a designated agency allows for individual advocacy. The buyer and seller both have their own agents to negotiate on their behalf. The designated agency also requires disclosure and is regulated differently by state, so be sure to explore your state laws.

Is working with a dual agent the right decision for you?

Before deciding whether dual agency is the right fit, it can help to think through a few key considerations. Think about the following questions and how they relate to what you want out of your home buying experience:

• How much individual guidance do you want? Dual agents must stay neutral, which can limit the personalized advice they can offer during negotiations or pricing discussions.
• How comfortable are you navigating certain decisions on your own? If you want detailed support on offer strategy, counteroffers, or evaluating terms, having your own agent may feel more reassuring.
• Does the convenience of working with one agent outweigh the limits on advocacy? Some buyers and sellers appreciate streamlined communication, while others prefer having a professional fully focused on their side of the transaction.

Zachary D. Schorr, Esq. notes that dual agency “makes the most sense with experienced buyers and sellers who understand the process and are comfortable making their own decisions, particularly in straightforward transactions or competitive markets where efficiency and deal certainty matter.” However, he adds that separate representation is typically safer in “more complex or high-stakes transactions, for first-time participants, or anytime strong, independent advocacy and negotiation are important.”

Special considerations for buyers

Working with a dual agent can feel convenient for buyers, especially if you discover a home you love through the listing agent or haven’t yet chosen your own representation. In some situations, buyers appreciate having a single point of contact who already understands the home, the seller’s timeline, and the basic details of the transaction.

However, if buyers want detailed guidance, coaching through negotiations, or help interpreting the details of a property or offer strategy, it may be more valuable to have an agent who represents only the buyer.

Special considerations for sellers

Sellers may find dual agency appealing because it may simplify the logistics of coordinating showings, questions, and offers. If the listing agent already knows the home well, extending their role to include the buyer’s side may feel like a natural next step.

Dual agency may be a better fit for sellers who prioritize convenience and feel comfortable making negotiation decisions themselves. On the other hand, if maximizing advocacy or having a strong supporter during the offer and counteroffer stages feels essential, then finding a dedicated agent may provide more peace of mind.

FAQ about dual agency

Does a dual agent get paid more?

A dual agent may receive the full commission because there isn’t a second agent involved. Commission structures can vary by market and brokerage, so it’s important to understand the commissions arrangement up front before entering a dual agency.

Can a dual agent negotiate for me?

A dual agent cannot negotiate in a way that favors one side over the other, but they can facilitate communication, share factual information about the market, and help manage paperwork. If you want more tailored negotiation support, single-agent representation may be a better fit.

Does dual agency affect the overall price?

A dual agent must remain neutral, so they can’t advise either party on offer amounts, pricing strategy, or negotiation tactics. This doesn’t automatically raise or lower the price, it simply moves the responsibility of those decisions to the buyers and sellers without the individualized guidance they might receive from a dedicated agent.

The bottom line: Dual agency requires careful consideration

Dual agency offers convenience to both the buyer and seller while also limiting the level of individual advocacy available. If you’re considering dual agency, reflect on your comfort level, local regulations, and the complexity of your real estate transaction.

There’s no right or wrong when it comes to choosing between a dedicated agent or a dual agent. What’s important is to consider what matters most to you during the homebuying journey and make a choice that supports that path.

If you want to be ready to proceed when the right house comes along, start the mortgage process today.

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