Some Real Estate Agents Are Unethical. Here’s How to Protect Yourself.
In my years of practicing real estate, I’ve unfortunately seen my share of unethical real estate agent behavior in the industry. And not just the kind that makes you shake your head. I’m talking about real estate agents acting in their own best interest rather than their clients’ and sometimes to the client’s financial and emotional detriment.
I’ve always said that one of the structural faults in our profession is the commission-based model. Most agents work hard, care deeply, and want what’s best for the buyer or seller. But sometimes, personal motivation takes over. I call it commission breath. You’ve probably encountered it before. It’s that feeling you get when the person across from you is more focused on closing the deal than on doing the right thing.
Sometimes, commission breath is obvious. Other times, especially with seasoned agents, it’s masked behind a smooth, persuasive exterior. But regardless of how it presents itself, it’s never okay.
A situation recently came to my attention where a buyer was clearly misled by their agent. The agent allegedly told the buyers the sellers would cover a certain closing cost but never actually put that agreement in writing. The agent may have done this to avoid renegotiation or to make the buyer feel locked in. That is not only unethical but potentially a violation of the National Association of Realtors’ Code of Ethics.
If you ever feel like your agent is being dishonest, here’s what I recommend:
Talk to them first.
Give them a chance to explain. Miscommunication does happen. But if you get evasiveness or more spin, that’s a red flag.
Contact their broker.
Every agent works under a managing broker. Brokers are responsible for supervising their agents and may take misconduct very seriously.
File a complaint.
If necessary, you can report unethical behavior to your local real estate association. Every local board has a grievance process, and the best ones follow through with real consequences.
This kind of unethical real estate agent behavior is why so many people have a negative perception of real estate professionals. It’s a shame, because the vast majority of agents I know are ethical, hardworking, and focused on serving their clients. But it only takes a few bad actors to cast a long shadow.
If you’re hiring a real estate agent, take the time to interview more than one. Ask how they handle conflicts of interest. Ask how they get paid and what motivates them. Pay attention to how they make you feel. If something feels off, it probably is.
And if you’re ever in a situation where you feel misled by an unethical real estate agent, you don’t have to go it alone. I’d be happy to connect you with a trustworthy, ethical real estate professional in your area, someone who will guide you with transparency, advocate for your best interests, and earn your trust the right way.
