Will Real Estate Agents Lie to Close the Deal?

Sep 28, 2022
5 min

Your clients might have an urge to find houses for sale by owner to avoid working with real estate agents now. To be the best Realtor® California has ever seen, you must follow a strict code of ethics. This means, when there’s property for sale, the client is the agent’s priority.

Your client shouldn’t learn how to buy a house on their own because they worked with a dishonest real estate agent.

Sticking to the ethical code that was created by the National Association of Realtors® is important to maintaining an agent’s moral integrity. Without it, the industry will get filled with low value agents trying to make a quick buck.

The Real Estate Agent Code of Ethics

The National Association of Realtors® changed the industry in 1913 when they developed a code of ethics. By doing so, they solidified the ethical duties and responsibility that agents uphold in their profession.

The goal of the code of ethics is to create cooperation among real estate agents to further meet the client’s best interest.

The NAR® code of ethics is used as a moral compass for agents. Even going as far as to say that agents “...connote competency, fairness, and high integrity resulting from adherence to a lofty ideal of moral conduct in business relations. No inducement of profit and no instruction from clients ever can justify departure from this ideal.” Agents must put aside the idea of earning a few extra dollars to stay true to their moral integrity.

Why Agents Stretch The Truth

Those who are loyal to the real estate agent’s mission will respect the client’s best interest and work for them. Unfortunately, a few agents will stretch the truth with the client.

The reason why agents mislead a seller or buyer is because they’re desperate to earn their commission. Most of the time, the agent will try hyping up their client when finding homes for sale in California. They do this by promising fantastic - but unattainable - deals on their home.

This is to excite the client so they will hire the agent.

The agent will be desperate for clients depending on their current level of success and the size of their clientele network.

If the agent is unsuccessful in their career, they’ll have more desire to manipulate the truth. The same goes for an agent with a small network. When they hype up their client, they’re trying to grow the amount of connections they have.

You can avoid this low status agent behavior by committing to the NAR® code of ethics.

Difference Between Truth and “Untruth”

Deciphering the difference between truth and “untruth” can be complicated for the client. Telling the truth is always the best policy.

This allows clear, unaltered, real information to be exchanged between the client and agent.

When an agent chooses to lie or give false information, they’re being untruthful. For example, an agent might tell a client to raise the price of their home to create a sense of excitement towards the agent.

The client will be more inclined to work with someone who could make them more money.

Agents know this and will leverage this desire in their favor. When agents sugarcoat information as a way to be more marketable, they are being deceptive.

As an agent, you should always be supporting and honest to your client.

Always play fair in real estate. Being dishonest and corrupt in your business is a great way to lose your license, but it’s also a morally irresponsible characteristic for a person.

The California Association of Realtors® and Ethics Violations

The California Association of Realtors® (CAR) handles investigation into any ethics violations. This means brokerages are investigated when an agent has committed an action deemed immoral or unethical.

Agents sign with the brokerage, so the actions of the real estate agent reflect that of the brokerage.

When unethical behavior is reported, CAR undergoes an extensive process investigating the report. Depending on the severity of the report, CAR could warrant the suspension or revocation of the perpetrating agent’s license.

Putting the Client First

When you put your client first, everyone will notice.

Practicing clear, transparent communication is an effective way to show the client you respect their time and business. When you are open, honest, and communicate your goals, they will reward you with their loyalty.

You should also keep your word. Holding yourself accountable to provide quality service is important to building trust between you and your client. If you promise to sell their home after raising by $50,000, you should do everything in your power to do so.

Agents can build strong relationships when they are honest with their clients. When they do, there’s immeasurable returns.

The Perks of Being an Honest Agent

When you practice honest habits as a real estate agent, you’ll earn a larger network of clients.

This happens because people want to work with you. When a client finds a real estate agent they trust, they’ll most likely hire them for future deals or recommend them to a friend and family. A successful real estate agent grows their network quickly through referrals.

Avoid falling into the vicious circle of dishonesty by holding yourself accountable to being an honest agent. Doing so will decrease the incentive to lie or tell “untruths” to future clients. As a result, your network will grow - so will your commissions!

Every week, we release in-depth videos to help viewers become successful real estate agents on our CA Realty Training YouTube Channel. Also, if you enjoyed reading this article, we would love if you could share it with a friend who you think would get something out of it.

Sep 28, 2022
5 min