After the recent lost case for collusion, I don’t see the industry understanding the writing on the wall, and is doubling down.
More agents and brokers are fear-mongering about buyers not getting represented because they can’t afford them. Yes, they can’t afford the current commission rates but that doesn’t mean they can’t afford something reasonable. Also, it is not like they were looking out for their interests or the interests of sellers as obvious from the lawsuits and recent verdict.
The industry is more worried about their revenues and profits versus ethics, good practices, and the public. The reason why they lost touch is because they forgot what this industry is about. They forgot who we are supposed to be which is agents.
Our job is not to sell or complete a transaction even though nearly every agent and broker I have ever talked to has said the job is to facilitate the transaction and get the sale done. This explains their preoccupation with commissions as it is tied to a sale.
Agency creates a legally binding relationship between the agent and their client. Because of agency, real estate agents are to act in their client’s best interest and owe an ethical and fiduciary responsibility to the client and not to the transaction. Only then can an agent be able to advise a client of what is in their best interest which can be or not to start or complete a transaction.
But if one is told the opposite and is paid only if a transaction is complete then one is not an agent but a salesperson. The salesperson has no fiduciary interest or responsibility to the client only that the sale is made to get paid.
MLS should not have commissions visible and bonuses for agents should not be allowed to influence behavior. Only the best interests of the client matter and that is what an agent is truly paid for. He/She is paid for obedience, loyalty, disclosure, confidentiality, accounting, and reasonable care, not the sale.
#marylandrealestate #nar #realestateindustry #homebuying #homesales #dmvrealestate #dcrealestate
