A new Zillow survey found that nearly 9 in 10 agents believe independent representation is good for buyers — but less than two-thirds think it helps agents.
Most real estate agents believe buyers benefit when they receive independent representation, a new survey found — but agents still need to make a living, and they’re aware that dual agency is in their own financial interest.
Independent Representation
The online survey was unbranded and sent to agents regardless of their affiliation with the portal, according to Zillow. Findings were based on responses from 366 active real estate professionals across the U.S.
The vast majority of agents (88%) said independent representation benefits buyers, while an even higher share (89%) said buyer agreements are good for consumers.
Access to all available property listings, having a choice in which agent to hire, and the ability to negotiate fees were also largely considered to be in a buyer’s best interest, with 86%, 81%, and 77% of agents agreeing, respectively.
Agent Interests
When asked whether those same practices benefited agents, however, sentiment was more mixed.
Respondents appeared to be keen on buyer agreements — 86% said they were good for agents — just 61% said they believe independent representation is in the agent’s best interest.
They also believed that access to all listings benefits agents, with 70% in agreement, but only 52% considered a buyer’s ability to choose who represents them to be a plus for agents.
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A mere 46% said fee negotiation is in the agent’s interest.
The dividing line: alignment breaks down on practices that directly affect agent compensation or control, including the right to choose, the right to negotiate and the right to see all available homes, Zillow‘s report noted.
This divergence — specifically around independent representation and a buyer’s ability to choose their agent — suggests some agents may be conflicted when weighing their client’s interests against their own.
Zillow pointed to a study by the Journal of Housing Economics that argued agents in dual agency transactions have an incentive to close a deal quickly, and that can potentially cloud their judgment despite their fiduciary duty to act in their client’s best financial interest.
A separate analysis Zillow released in May found that sellers typically lose over $2,000 in dual agency transactions, highlighting the potential drawbacks of such arrangements.
Agent Motivations
Despite having mixed views on how buyer agency practices may benefit their bottom line, “agents know what good representation looks like, and I believe that most are motivated primarily by doing right by their clients,” Mischa Fisher, Zillow Chief Economist, said.
There is no substitute, though, for an informed buyer who knows what to choose a great agent.