 Home Buyers
Tips Archive
Ethics And The Agent
Yes. In each state, the licensing procedure includes
a code of ethics. In addition, agents who are members of the National Association of
Realtors are bound by that organization’s code of ethics.
Your agent cannot do the following:
- Make false promises to you or “substantially”
misrepresent a property.
- Represent both you and a seller in a deal, without your
written consent.
- Deposit your money in a manner violating code requirements,
for example., in his name rather than in that of his supervising broker.
- Accept compensation for your deal from anyone except his
supervising broker.
- Discriminate against you because of race, color, religious
creed, sex, ancestry, national origin, or physical handicap.
Although some agents engage in pressure tactics, or
“salesmanship”, few cross the line into unethical behavior. To do so could
mean loss of license.
What are the most common types of unethical, or
borderline, practices?
Most of the unethical behavior comes from ignorance, often
caused by inexperience. Not depositing your money in exactly the prescribed manner
is an example.
Some unethical behavior stems from lack of communication
with the buyer. For example, if you see a house with one agent, you cannot go back
to that house with another agent. However, if the latter agent doesn’t know
you’ve been there, he won’t know he is violating the code by accompanying you.
The best agents avoid such tactics and let the house sell
itself. But even the best may drop a phrase or two to nudge you along toward a
decision. Here are a few:
“If I could, I’d buy this house myself.”
“Remember, other buyers are looking at it, too.”
“Interest rates are going up. Don’t hold
off too long.”
“We can make out an offer back at my office, and have
it to the seller by 4 p.m.” You haven’t even said you want it.
“How big shall we make the deposit?” You
haven’t even said you want to make one.
“Yes, but don’t you remember how big the basement
is?” The “yes, but” deflects your attention from a problem you just
brought up.
Don’t be nudged into a decision before you are ready.
Unless the market is tight, sleeping on a possible offer is a good idea….
You will have to gauge the personality of your agent.
For a very sensitive agent, one outburst may be enough to damage your relationship,
regardless of whether you are in the right. Most agents, however, are thick-skinned
enough to take one or two outbursts.
To avoid blowups, reach agreement in the beginning on what
you expect of your agent.
Any time, for any reason. Even if you just don’t
like the agent’s personality….
Yes. Do it through the agency manager, however.
Ask the manager to meet with your old agent and desired new agent, and explain that
you want to switch. The manager will probably work out a split commission deal for
the two agents, should your new agent help find a house….
This Tip was excerpted from:
How To Buy A House by Cyrus A. Yoakam, Stackpole Books, 1988
ISBN # 0-8117-2252-X
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