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Real Estate News and Advice |
July 10, 2009 |
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Don't Stand For Unethical Behavior
by Blanche Evans
Virginia Association of Realtors' CEO Scott Brunner is on a mission -- to make Realtors realize that the bad reputation they have in the public's mind is a result of their own actions -- or tolerating bad behavior from colleagues. Not only has he and his board spearheaded a campaign to raise ethics awareness -- "The Code is Good Business" -- he's talking directly to Realtors. "Realtors are enraged that they have such a bad reputation in the public, but we remind them that their reputation is only as good as their slimiest colleague," says Brunner. "We have to hold each other accountable. If you have a problem with another agent's violation of ethics, just call the other broker and tell them what happened. It's not nailing your competitor, it's good business." That's why he's written an editorial, "What the best of us can do about the worst of us."
"Everywhere I go, Realtors bemoan their collective bad rep," writes Brunner. "In those consumer surveys, we're always ranked down there with used car dealers and journalists," sighed one dismayed broker at a recent gathering, and then she asked: "What can we do about that?" I coughed politely, cleared my throat, and gave her a piece of my mind. Well, not really. What I really did was mumble something trite about VAR's ongoing public relations efforts, then changed the subject. Afterward, though, upon reflection, I wished I had answered her question. I wish I had told her what I really think. "For a start," I wish I'd said, "You can stop acting like used car dealers and journalists -- chasing the money, cutting corners, playing opportunist, hiring any agent who can fog a mirror, and trying to skewer the competition. You can start putting the best interests of your customers and clients ahead of your own interests." Naturally, a look of righteous, crimson indignation would have appeared on her face. "I would never do those things," she would whisper, visibly wounded by my insinuation. "I don't doubt that at all," I would have replied. "But you tolerate it in other Realtors more than I'll bet you'll admit. How many times have you looked the other way rather than report illegal or unethical behavior, or rather than even coaching or mentoring the other agent to correct the bad (and often clueless) behavior? It's best not to rock the boat, you tell yourself, because you'll have to do business with that person again down the line. And in so doing, you completely overlook the impact of others' slimy behavior on your reputation." And then I might have told her a recent story or two … or three … . How about the one about the Eastern Shore buyer's agent who presents a contract he'd written -- not his first contract, mind you -- on which he manages to confuse himself as to whether he is the listing or selling agent. When the listing broker points out the poor fellow's error and suggests that, until he gets the hang of it, he should consider letting his broker review his contracts, the new agent demurs because, he tells the listing broker, "All my broker does is yell at me." Or how about the central Virginia broker who finds herself under threat of an ethics complaint by fellow brokers because she uses her refusal to engage in disclosed dual agency to her competitive advantage. Her purported crime? In explaining her aversion to dual agency, she tells prospective clients that she'll never do anything to put her own or others' interests above those of her client, and suggests that the prospect ask other brokerages if they can make the same claim. Her competitors seem to think that she's disparaging them in some way, when in fact, she's protecting her prospective client's interests. Or how about the Hampton Roads agent who brings a marginal buyer to a lender. The lender counsels the buyer that her chances of getting a comfortable loan would be much improved if she'd to take six months or so and pay off some debts and clear up some credit problems and then begin to look for the right home. At which point the huffy agent finds a subprime lender, squeezes her marginal buyer into a marginal loan, and calls the original lender up to tell her that she'll never bring her business again because the lender had nearly cost her a commission. And finally, how about Realtor® brokers who can't or don't supervise properly, and whose agents wreak havoc in your transactions. There are Realtors who avert their eyes when they see a predatory lending situation. There are Realtors who shoot from the hip in answering buyers' questions about a property, rather than getting the facts and Realtors who seem to be more focused on the commission check than on the customer service. And yes, Realtors who fail to hold their fellow Realtors accountable for the reputation of the collective profession. We talk a good game about ethics and professionalism in this business, but we don't consistently demand it of each other in the marketplace. We forget that our personal credibility and professional image is only as good as the behavior of the worst Realtor among us. Yes. That's what I wish I'd said: "You can't talk our way out of a situation you acted your way into." Change the behavior, and you'll change your image. It's a sobering point of view, especially now that many markets have turned from red hot to not. Competition is stiff, especially in view of the numerous new entrants into the real estate industry that are attempting to wrest power away from Realtors, from for-sale-by-owner sites to advertising sites such as Zillow.com. The press has been brutal toward the industry, castigating any attempts by the industry to protect itself and applauding every new company that cuts into Realtors' commissions or routes consumers into buying or selling housing without them. But, the solution is simple, Brunner maintains. Just follow the Code of Ethics and you can't go wrong. "The Code of Ethics translates into simple behaviors (returning phone calls; doing what you promise), which become part of your business practice. Your business practices become your reputation. People buy and sell real estate with people they trust. You cannot ask for trust; you can only earn it. The Code is a set of business practices that can help you earn the trust of your customers and prospects. How you act affects the way people perceive you. People may not remember what you say; they always remember how you make them feel." Editor's note: Whaddaya mean "journalists?" Published: April 4, 2007 Use of this article without permission is a violation of federal copyright laws. Related Articles:
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