By Jack Wilkinson
2002 President of the Marin Association of REALTORS®
Jack Wilkinson, GRI, is a 29-year member of the Marin Association of REALTORS®. He is a certified instructor of all phases of real estate education, a trainer of the required ethics introduction for MAR and contributing editor of the newly required real estate course, “Blueprint for Success” published by Kaplan Professional Schools.
It is an excepted law of ethics that punishment in the Court of Conscience, unlike Courts of Law, lessens with each repeated and unrebuked offense.
Joseph S. Auerbach
Article 1: REALTORS® protect and promote their clients interests while treating all parties honestly.
A friend of my just listed his house for sale and he gave me a little tour, asked what I thought of the price and this market.
I asked where the price came from and he mentioned that it was his brokers recommendation.
“Of course, the higher it sells for the more the broker makes”, he commented.
I asked what the commission was and he replied five and a half (5.5%) percent.
Well, I could not comment on the price as I have no real idea of the values in his neighborhood. It seemed reasonable to me. But what bothered me was his comment that the price was driven by the commission dollars to the agent and not the best interests of the seller. I know the agent that listed the property, and while I have never done a deal with that agent, my personal knowledge leads me to believe that the agent will only work for the best interest of her the client. The price is determined by the market not the commission.
I asked what the split was being offered and he said 50/50, as I had expected.
What caught my attention was his underlying belief that the REALTOR® would put the commission before his best interests. He assured me that he didn’t really think that, but it was a consideration.
Standard of Practice 1-3 REALTORS®, in attempting to secure a listing, shall not deliberately mislead the owner as to the market value.
I talked about how having a property on the market a long time, particularly in this market, is a sure sign that its over priced and not in anyone’s best interest. Further, if it were overpriced by $25,000 dollars the agents take would be about $600.00. Now, I don’t mean to dismiss that as nothing, but the price issue means far more to him than to the agent.
My reason for bringing this to your attention is two fold:
A. The code of Ethics Article 1 says, in part, we”…protect and promote the interests of the client…”
B. I have always told my real estate students that if you always work only for the best interests of the client you will have a long and fruitful career and avoid lawyers.
It may not be in our best interests as far as money is concerned. If it comes to your best interest vs. the clients’ best interests it may be best to remove yourself from the situation. However, you can only do this if doing such will not do harm to the client.
Remember, we really do operate in the court of conscience. The REALTOR® Code of Ethics is our road map.
