Realty Times March 23, 2006

Disturbing Internet Trends in Real Estate
by Jim Crawford

The Internet is an often discussed aspect of our current age, but it can be often misunderstood. For many of us in real estate, the internet has allowed us to realize the potentials of earnings beyond what we made years before. We can work faster and smarter.

The Internet affords peace of mind to the owner of the site because marketing is now 24/7, 365 days a year and is fully global in its reach. But the internet is also abused -- by those that use its anonymity to take what it not theirs.

What follows is a list some of the most common abuses the real estate industry sees on the internet:

  • Branded Sites: Websites entirely about an agent, but that lack information about state, office, or office address. These "all about me!" sites aren't in compliance with licensure laws.

  • Blind Sites: There are no agent names, contact information, etc. You can contact the owner of the site by form or email only. These are also not in compliance with licensure laws.

  • Exclusive Territories for Real Estate Leads: These are leads that are sold to agents or brokers, and unfortunately these sites can prey on novice agents who think that the majority of leads will turn into sales.

  • Internet Mortgage Companies: This can be a prime area for mortgage fraud: undisclosed relationships, referral fees, RESPA violations etc.

  • Buyer Rebate Companies: Rebates are promised if you use the services of a company, but the fine print limits the amount of homes that can be viewed. Perhaps you can receive a 1 percent rebate of total commission, but if you view more than say -- 5 homes -- the rebate is limited to a dollar amount usually no more than $500!

  • Active Listings that are Already Under Contract: Some agents keep a listing marked as "active" to attract more buyers on the MLS -- even if they listing is already under contract. This will usually result in fines from the MLS board if found.

  • Plagiarism: This is using someone else's words, ideas, phrases, scripts, etc without their specific permission.

  • Linking to Another Realtors Website Without Permission: Websites are linking to other agents websites, and placing links to their site on their own web pages. They may pass off as if they have the right to do this because they claiming they're really a search engine.

    The solutions to some of the ethical issues I've mention in this article are in the awareness of those in the industry. A strong standard of ethics and principles will ensure that the consumer can put full faith and trust in each and every agent. Where the misuse of MLS data is occurring, it needs to be brought to the attention of those that can effect change. Where we have jurisdiction or access to our local, state REALTOR boards we should be able to file a grievance to air out the issues.


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