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Should we tell it like it is? A question of ethics and ethos.

By
Real Estate Agent with Century 21 Elite Performance

Many argue that it's our responsibility to try and keep the public calm during this market, and not to further assist in rocking the proverbial boat when it comes to telling folks what kind of numbers are truly happening in any given area. Focusing in on sales price to list price ratios rather than doing the homework and pulling property histories to see what homes originally listed at and ended up selling for as one example. Some conjecture to say that it's our moral obligation not to further create panic thus driving property values down even futher.  Indeed that argument is coupled with shades of accusation that go on toward price fixing, making it seem even more to the detriment of all, espcially those who are ethically responsible.  Over zealous sales representatives who manipulate numbers in their favor are not Realtors.  But if Tony were able to fully disclose his sins to Carmella and their marriage become stronger than ever, then are there really any absolutes?

But ofcoarse.  I think the kind of arguements made for NOT "telling it like it is," as listed above are weak, and I think favor that of Realtors who are not ethically responsible.  How are consumers on the selling side for example going to make an informed decision when determining a value for their home if we don't lay out all of the facts?  For that matter, how are buyers going to make informed decisions on what to make as an offer based upon stats and comps?  I think it is important to "tell it like it is," in Real Estate, in fact I think it is our ethical responsibility.  It doesn't have to be presented with doom and gloom, it's just fact.  "These are the numbers, now... what do you want to do?"

Comments (13)

Sharon Harris
Keller Williams Keystone Realty - Hanover, PA
Realtor
Very nicely put. You give as all a postive spin on this market..
Mar 13, 2008 10:10 AM
Ellie Viray
Deasy Penner Podley - Pasadena, CA
Realtor, GRI
Jon - Your are right.  Like you say, it doesn't have to be all doom and gloom.  Give the truth, it's just the truth.
Mar 13, 2008 10:26 AM
Jon Higgins
Century 21 Elite Performance - Springboro, OH
ABR
Thanks Sharon and Ellie! 
Mar 14, 2008 05:54 AM
Monika McGillicuddy
Berkshire Hathaway HomeServices Verani Realty - Hampstead, NH
Southern NH & the Seacoast Area
Tell it like it is...but try and keep it positive, In my market it is picking up so no doom and gloom for me.
Mar 14, 2008 10:56 AM
Jeff Sorg
Portland, OR
  • Standard of Practice 1-3

  • REALTORS®, in attempting to secure a listing, shall not deliberately mislead the owner as to market value.
    Mar 15, 2008 12:06 PM
    Karen Turney
    Homesmart - Phoenix, AZ
    Phoenix Real Estate
    I believe in ethical behavior and telling the truth, but that's what helps me sleep at night.  I suppose a lack of scruples can make anyone more money.  I'm not sure I believe in karma, but when I die and go to heaven I am holding an open house for ethical realtors.  There we will punish all unethical realtors and send them to purgatory or some other place of darkness..   Well I can dream.....
    Mar 19, 2008 04:51 PM
    Katherine Anderson
    Coldwell Banker Hobin Realty, LLC - Hampton & Rye, NH, USA - Exeter, NH
    Managing Broker
    Jon, it's so important to give our clients, and potential clients a true and honest evaluation of the market.  I see that Jeff mentioned the Standard of Practice 1-3 from the CoE.  It's a shame, but we actually use this in our listing presentation because there are so many agents out there that are still "buying" their listings by giving the seller an untrue valuation, so we warn consumers that this is a practice that they should beware of. Monica... yes, we are seeing an upturn here at the seacoast as well... yay!!!   BTW Jon ... I'm originally from Centerville, Ohio ... so just wanted to say hi as a fellow Buckeye!  :-)
    Mar 20, 2008 02:46 AM
    Rich Quigley
    Chicago, IL
    Very well stated, Jon. Sometimes the facts are not pretty, but it is our responsibility to be 100% honest with our clieints.
    Mar 22, 2008 02:26 AM
    Trey Thurmond
    BCR Realtors - College Station, TX
    College Station , Texas Homes

    Great take on things...but  I still have to look at the past to understand the future..Some very innocent and honest businesses including banks got hurt in the 80's . Example: some banks were perfectly solvent, but because their numbers were slightly down the media played the case as if they were broke thereby creating a run on the bank , thereby causing the bank to actually become so insolvent they had to shut down.

    Our obligation is to tell the truth and All the facts that materially effect business. They facts have to be real and not just second hand info, gossip or conjecture. I like to see things like the written word, numbers, and statistics when helping clients make decisions. I try to leave the media out of discussions.

    Mar 22, 2008 02:36 AM
    Jon Higgins
    Century 21 Elite Performance - Springboro, OH
    ABR
    I want to thank each and every one of you for your interesting perspectives on this blog.
    Apr 05, 2008 04:32 PM
    Jon Higgins
    Century 21 Elite Performance - Springboro, OH
    ABR
    I want to thank each and every one of you for your interesting perspectives on this blog.
    Apr 05, 2008 04:32 PM
    Bill Schwent
    Casa Tierra Realty - Santa Fe, NM
    Santa Fe Broker

    Jon,

    Jeff Sorg's comment was only partly correct.  What I see more often is incompetence.  The listing broker does not know what the market is doing and lists the property too high. 

    Article 11
    The services which REALTORS® provide to their clients and customers
    shall conform to the standards of practice and competence which are
    reasonably expected in the specific real estate disciplines in which they
    engage; specifically, residential real estate brokerage, real property
    management, commercial and industrial real estate brokerage, real
    estate appraisal, real estate counseling, real estate syndication, real
    estate auction, and international real estate.

    So, the Realtor is still inviolation of the Code but has not deliberately misled the client.  Actually, incompetence can be and often is the bigger problem.

    Apr 06, 2008 02:00 PM
    Vicki Lloyd
    The Lloyd Realty Group - San Diego, CA
    (619)452-9798, Real Estate San Diego California
    I believe in being honest about the values of properties, but really need to work on the delivery of the news.  When you tell someone that their home is not worth what they hoped it was, it is important to be gentle!  I never want to hurt someone's feelings, but more often than not, I come across as way too blunt.  When another agent gets the listing at $25k - $50K above what I estimated, it really galls me to watch as they eventually reduce it and it sells where I told them it would.  I think the best way is to tell them "It's probably going to sell for somewhere between $xxx and $yyy, but I'll do my best to get you $ZZZ."
    Apr 06, 2008 04:08 PM