Tuesday, May 15, 2007

A True Greater Good in the Real Estate Industry

There was a recent blog from a Realtor discussing the "Skyhook Theory" in real estate. He basically explained that this theory encompasses the principle of finding a greater good in the things we do--and that aspiring to do this makes us better people. While I earnestly believe and agree that finding the greater good in all things is the ideal way to be, the reality of the situation in the real estate industry, is that the greater good is generally neglected when it comes to consumers.

The greater good in the sense of the real estate industry is not just about touting superior service, because a higher level of service should go without saying. I believe that the greater good goes much deeper than that. It should be about ensuring equal footing for buyers and sellers alike. It should be about real estate professionals doing everything they can within their power to prevent either side from being exposed to dual agency--which is a conflict of interest.

It should mean that traditional real estate companies demonstrate a willingness to relinquish the age-old tradition of double dipping--which happens when one real estate company collects commissions from both sides of the same transaction. It should mean that the real estate industry, as a whole, be completely honest with real estate consumers about all available agency options--including Exclusive Buyer Agency.

Not so long ago, real estate was ruled by seller representation. This is no longer the case. The real estate industry is, and has been, transforming to a level playing field between buyers and sellers. As more consumers become aware of dual agency, they are realizing that it is not in their best interests to consent to it, because dual agency is a conflict of interest. The way buyers can be assured that an agent is truly working for them, is by hiring an Exclusive Buyer Agent, or an Exclusive Buyer Broker.

Until the real estate industry owns up to what is truly in the best interests of consumers, we cannot really begin to speak about a greater good in the real estate industry.