Ethics in Real Estate
The real estate industry is one of SoloProtect’s top verticals that have a need for the lone worker protection that we supply. Because we are constantly interacting with realtors, we have gotten to know many of their areas of concern and interest within the industry. Something that we often hear come up with realtors is the issue of ethics. Real estate business is primarily based on trust and realtors need to develop an ethical culture. This culture is essential in building strong working relations between a realtor and clients. It is also important to building and growing a real estate business. While the National Association of Realtors NAR) provides a Code of Ethics to abide by, ethics are not always seen to as they should be.
Adopting a healthy culture of ethics will help build a solid relationship with clients and grow a business with an excellent reputation. Selling and buying real estate are major, life changing events that demand utmost trust. Property buyers and sellers love to work with someone they can trust and who works in their best interest. The national body of Realtors is committed to promoting Realtor ethics and urges its members to uphold good work ethics.
Reasons why integrity is lacking in the real estate industry
- Real estate sale and purchase often involve colossal amounts of money. Many real estate agents and firms in this industry would not like to see changes introduced that would affect the flow of money.
- Since real estate agents control the industry, it is challenging to introduce any meaningful changes or reform the sector. Realtors are happy with the status quo and would love things to remain the same.
- In many instances, consumers rely on real estate agents to furnish them with information and advice because they lack the knowledge to do so on their own. This can allow realtors to take advantage of their lack of experience and can end up costing them thousands of dollars.
Below are major areas of ethical concern for realtors to focus on.
Realtors must be fair and honest when advertising and accepting new clients
Communication with the public needs to be open, truthful and honest. Misrepresenting facts or claiming another realtor’s work is wrong. Realtors should not deny services to members of the public based on skin color, sex or nationality. However, it is acceptable to offer bonuses and prizes to clients who choose their services.
Realtors have a duty of care to clients
Realtors who are members of NAR are required to promote the interests of their customers. This means they are obligated to treat all parties honestly and justly. A realtor should endeavor to put the client’s interests first at all times. This means searching thoroughly through inventory and revealing any relevant information to the customer to enable them to make an informed decision. This rule should be followed through regardless of any risks to possible profits.
Realtors should always be truthful with all parties involved in a transaction
Making true revelations to all parties in a transaction is important. This includes clients, other real estate agents, and their customers. A realtor should not mislead a client on the real value of property or the savings they make by using their services. Relevant facts should not be concealed, and exaggerations should not be done. Disclosing details such as a buyer’s credit records and providing all necessary paperwork are all very important.
A realtor should provide all pertinent information and reveal important factors regarding a property as well as deals of the transaction. The revelations should be made in good faith to both buyer and seller. Should any suspicions or questions arise then the real estate agent should investigate and find answers. This way, realtor ethics or real estate values will serve both sellers and buyers well.
While it is easy to sometimes get caught up in business and success, be sure to always be thinking about and adhering to the actions listed above. To learn how SoloProtect helps realtors with worker safety, visit www.soloprotect.com/us.