Other than politics, it’s hard to imagine another industry that relies so heavily on false narratives. As a matter of fact, the real estate industry rates only steps behind its political brethren in terms of publishing storylines not necessarily aligned with reality.
Ever stand in a room of realtors while someone from NAR speaks of the “Code of Ethics” like it was some ancient Holy Scripture to be addressed in only hushed and revered tones? My Code of Ethics “class” consisted of; checking in, sitting down at a table and playing with my phone for 30 minutes while someone droned on about being the “Best of the Best”. Now is this representative of the nation? I hope not. But, NAR sells their “Code of Ethics” as the industry’s, “Guiding Light”. Yet, anyone who has ever attended a Code of Ethics “meeting” knows it’s hardly that.
Much of our industry’s guidance comes from the registration and use of a capital letter. Tens of millions of dollars have been spent implementing and maintaining this strategy. Why? Judging from what has been written; to create a storyline of differentiation, representation and brotherhood. This narrative, crafted by very masterful writers, is inspiring on many levels but paints an idyllic world where the vast majority of those who the message is intended for, find funny. For a small yearly membership fee, you too can be considered as one the “Best of the Best” and be allowed to use a capital “R” when referring to yourself in written literature. Of course “differentiation” can always be purchased, but if everyone is forced to buy, is it really being different?
Some false narratives almost seem conspired. Many years ago I was told by an E&O salesman that 1 in 3 real estate sales people will be faced with an E&O claim at some point in their career. Recently, at a luncheon with 6 other area Brokers, I asked the table to discuss their E&O issues. I got crickets! Over a century of collective experience with thousands of transactions and none of us personally knew of a single instance of an E&O claim. Yet the fear of an E&O claim is oddly ingrained into every agent.
What could a real estate agent, filling out a pre-approved legal form could do that would cause an E&O litigation? Aside from flat out illegal activity, which wouldn’t be covered by insurance anyway, there is no reasonable scenario where an agent would unknowingly stumble into a situation where it would cause someone bankruptcy or jail time. It simply doesn’t happen.
The E&O narrative is false and yet fiercely defended. Sure, it only costs agents $30-$40 a year. But, considering NAR’s membership rolls exceed a million, that’s what some people would call real money. Why has this, dispelled by fact, predatory practice been allowed for decades? Money is surely part of it, but the “idea” of having E&O insurance fits into a narrative that positions the realtor on a similar professional status as lawyers, and accountants. Ever been in an agent discussion group when a peer bemoans the fact Realtors don’t share the same respect as lawyers, doctors and architects? Actually, it happens all the time.
Imagine if Delta Airlines said, flying United Airlines increases your chances of death. In a competitive environment this doesn’t happen because facts matter, but more importantly this doesn’t happen because the competition will call BS. The real estate industry has no BS caller.
Agents have debated full-time versus part-time for decades. Yet, today we have far too many agents still painting part-timers in the same Trump-like broad brush; “They’re lazy losers!” And, unfortunately, like our political brethren, without any stewardship, the spreading of falsehoods and negative selling seems to have become as important to the real estate industry as it has become to politics.
Ever read the comment section at the bottom of an online article? If the article strays from the traditional industry norms, threatening language and negative falsehoods will surely follow. For many, it appears, being a realtor is akin to performing in a high-wire act. Yes, there are jobs where lives do hang in the balance, but, real estate isn’t one of them. In our area, much like the national average, there is a core of full-time professionals, but the lion’s share of all real estate transactions are between housewives/househusbands, mostly part-time, filling out pre-approved legal forms for properties that have been sold dozens of times previously. The trade of real estate isn’t as life threatening as many paint it to be. Yet, the danger narrative is persuasive throughout our community.
So, the group chartered with setting our direction as an industry is off in the weeds selling their narrative. The insurance conglomerates, the protectors of our industry, have been selling us dubious products with their fear tactics for decades. And, apparently with the tone we have for each other, agents, both large R and little r alike, have been watching way too many political ads.
Lest anyone think the narrative is going to get better any time soon, remember Rupert Murdoch has recently entered the U.S. real estate market. If Mr Murdoch has taught the world anything in his nearly 110 year career; it’s if he is involved, reality isn’t.
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