An article on MarketWatch today described how a Realtor® was refusing additional offers on a property because he wanted to maintain his “dual agency” and the higher commission that would result if his buyer made the deal. What struck me about the article wasn’t the account of one agent’s unethical behavior. No, what was most interesting and troubling came from the comments which were biased against Realtors by a 4 to 1 margin.
I like to read the comments on articles or blog posts because they often provide more information than the article itself. What the article’s comments told me is that the public has an extreme distrust of Realtors®; and while I know that the story is only dealing with one “bad apple,” those commenting expressed almost universal disdain for real estate professionals, using terms such as: rip off, low-life, self-serving, and shysters. The comments also expressed the belief that even those agents who are reported to the NAR for unethical behavior are rarely punished.
While I understand that the great majority of agents are honest, hard-working, and ethical, my opinion is unimportant. It’s the general public that must be convinced, and that will only happen when agents consistently report those who are violating NAR rules or are being dishonest. Sure it’s distasteful to report an associate, and many are uncomfortable being judgmental; but to ignore illegal or unethical behavior is to allow negative public impression to fester. Doing so hurts us individually and as an industry.
Finally, the article pointed out that many consumers truly don’t understand how “agency” works and are unsure who their agent is representing, and NAR studies support this finding. Surveys have shown that 2/3 of buyers were not told who their agent represented during the first meeting, an oversight with the potential to cost a buyer thousands.
I strongly support Realtors® and have expressed that opinion many times, most recently in a post entitled, I Support Realtors For Selfish Reasons. It seems to me, however, that Realtors can improve the public perception of their industry by taking a few simple steps; by vigorously following their Code of Ethics and helping to insure that their associates do the same.
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