The Real Estate Industry’s Reputation

Ethical Real Estate Agents

All you have is your Reputation in this Real Estate Business.  

You can not survive for any length of time unless you are Professional, Ethical and Above Board in all of your Dealings with Buyers, Sellers and other Agents.

 

Here’s an interesting take on The Real Estate Industry’s Reputation:

Ethical Real Estate AgentsIn a Canadian market with more than 100,000 Realtors, competition is fierce. And it’s no secret that real estate salespeople have less than stellar reputations. Despite that fact that business is proceeding as usual in the relatively strong 2016 real estate market, ignoring the importance of reputation has consequences that can be fatal to a sales rep’s career.

The temptation to cut corners in real estate representation can be overwhelming. In addition to the recent stories coming from Vancouver about shady assignment deals, we’ve all heard horror stories about phantom offers, manipulating clients in bidding wars and the practice of poaching clients. Where there’s big competition, the threat to quality rises.

According to a recent survey, trustworthiness and reputation are important factors for clients when choosing a salesperson, along with knowledge, management, sales and marketing skills, and finally, ability to deliver results.

Real estate salespeople come in many stripes. According to Statistics Canada, the average annual income is $52,800. Only 41 per cent of salespeople earn $50,000 and over, while 25 per cent earn less than $20,000.

Whether Realtors want to improve their performance or protect it, they must put a good reputation at the top of their list. The challenge is to make them understand why they should when so much money is still trading hands. Many professionals take the “whatever it takes, ends justify all” attitude.

While this may sometimes secure a commission or get a client the home they want, it often ends up hurting both salesperson and client.

The Harvard Business Review validates the view that reputations matter greatly. “Firms with strong positive reputations attract better people. They are perceived as providing more value, which often allows them to charge a premium. Their customers are more loyal and buy broader ranges of products and services. Because the market believes that such companies will deliver sustained earnings and future growth, they have higher price-earnings multiples and market values and lower costs of capital. Moreover, in an economy where 70 per cent to 80 per cent of market value comes from hard-to-assess intangible assets such as brand equity, intellectual capital and goodwill, organizations are especially vulnerable to anything that damages their reputations,” says the Review.

Yet the perception that real estate salespeople and brokers have bad reputations lingers. One common reason is that when the cat’s away, the mice will play. Some people will get away with what we let them get away with.

Another is well intentioned: Many salespeople, through no fault of their own, fail to understand the real value that quality brings to the profession: they’re too busy being lured by the cash from a deal, money in the pocket, food on the table. While this is understandable, the situation is a bit like people voting for a candidate whose policies will actually hurt them in the long run.

The Real Estate Council of Ontario (RECO) says the No. 1 cause of complaints is miscommunication and non disclosure. Only 46 per cent of complaints to RECO resulted in regulatory action, which makes working with a less-than-reputable salesperson all the more dangerous. What must be done?

Builders know the value of reputation, because they’re in it for the long haul. Ramtin Sotoadeh of RS Homes highlights the connection between longevity and reputation for agents: “Any business including RSH couldn’t have survived for 32 years if it didn’t have a long standing reputation.” Transparency is the information age’s benchmark for success: “Honest agents may not be able to compete in the short term, but… in the long term, they will prevail.”

source:  Penn Jaydan REM on-line.com

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