How to Find an Honest Real Estate Agent (& Why It’s So Important)
Finding an ethical real estate agent is key when you’re navigating the complex world of buying or selling a property.
But unfortunately, while most agents operate with the highest standards of integrity and professionalism, a few bad apples can make it hard to know whom to trust.
Whether you're selling your family home or an investment property, knowing how to find an ethical real estate agent to assist can ensure you work with someone who truly has your best interests at heart.
Let’s find out how to find a real estate professional who not only ‘talks the talk’ but also ‘walks the walk’.
The importance of ethical real estate practices
First up: why do ethics matter?
Ethics in real estate are important when selling a home or property because the role of a real estate agent goes beyond mere transaction; it involves guiding vendors through one of the most significant financial decisions of their lives.
An ethical real estate agent ensures this journey is transparent, fair and devoid of any malpractices that could jeopardise your investment or peace of mind.
Not only that, but if an agent is willing to use unethical practices to get your home sold, how can you be certain they’re implementing ethical practices when it comes to dealings with you?
It’s a matter of trust – the old adage ‘do the right thing, even when nobody’s looking’ has never been so appropriate than when it comes to real estate.
Natalie Jones, Sales Director at We Connect Property, shares her perspective on the importance of ethics in the real estate profession.
"In this industry, trust is everything. Without it, neither sellers nor buyers feel confident in the process."
"Plus, honesty in real estate isn't just good ethics; it's good business,” she says.
“That’s because ethics-driven interactions today lead to trusted, ongoing relationships tomorrow - and greater success for both vendor and agent - which is what we all aim for."
So what are unethical practices in real estate?
Before you can identify an ethical real estate agent, it’s crucial to understand the tactics some unscrupulous agents use that cross the line.
Being aware of these practices equips you to ask the right questions, remain vigilant and steer clear of agents who might not have your best interests in mind.
Here are some tactics unethical agents may employ (and that you seriously want to avoid):
- Overvaluation of properties: Some agents inflate property values to tap into your enthusiasm and secure your listing; a tactic that can backfire by extending the time your property sits on the market and potentially lowering its final sale price.
- Underquoting to buyers: This strategy is designed to drum up more interest but can mislead buyers and sellers alike, skewing expectations, undermining the sales process and making it harder to sell your property in the long run.
- Manipulating sales data: Distorting sales data to make the market appear more favourable is a tactic that misleads sellers to have unrealistic expectations.
- Fabricating buyer interest: Like distorting sales data, agents claiming to have ‘ready buyers’ without tangible proof may be attempting to secure your listing through deceit.
- Lack of transparency / dual agency: Believe it or not, some agents secretly represent both the buyer and seller at the same time, which leads to major conflicts of interest. Any agent worth their salt should disclose this immediately if it occurs.
- Concealing fees: Ethical agents will be upfront about all costs, ensuring sellers are not blindsided by hidden expenses - either along the way or after their property sells.
"An ethical agent will always put their client's needs first, even if it means taking a longer path to the sale," Natalie points out.
She further explains that transparency about pricing, costs and the selling process is a hallmark of reputable service.
"If an agent can’t explain their fees, communication style or strategy clearly, that’s a huge red flag."
How to spot a bad or unethical agent (before you get sucked in)
As mentioned above, spotting an unethical agent involves being alert to red flags.
Things like poor communication, too-good-to-be-true promises, high-pressure tactics and a lack of transparency about fees and processes are all things to be aware of as you go through the process of selecting an agent.
How agents respond to your queries can tell you a lot about their ethics too.
Here are some of the most common warning signs that an agent may not be all that they seem:
• They have too many listings. They have more listings than seems reasonable - meaning your property may get ‘lost in the crowd’.
• Indifference. An agent should be excited and upbeat about the sale of your home and what it has to offer buyers. If they’re not, don’t kid yourself – it won’t suddenly develop later.
• Pushiness. Agents that try to push you in a direction you don’t feel comfortable with - even after you’ve expressed your feelings - is a big red flag. Put simply, an agent that that tries to convince you to run a campaign that just doesn’t feel right may not have your best interests at heart, and can indicate prioritisation of their commission over your needs.
• They don’t listen. If you’re not heard on day one, rest assured you won’t be as your journey progresses.
• No constructive criticism. A good, experienced agent wants to achieve the best results possible, so will offer ideas about how to make your home more appealing. No property is perfect, so if there are no suggestions, they’re probably not invested in your sale and may employ unethical tactics to get it sold and off their books quickly.
• Disorganisation. If they’re not on top of details, or turn up late for meetings, can you imagine how they’ll treat potential buyers, manage important deadlines and remember what they’ve promised?
• Terrible communication. In real estate, quick and clear and concise communication is key to a successful outcome. A good agent should be accessible throughout the process, answer your calls and get back to you in a timely manner. No dilly-dallying. No diversion tactics. Plus, there should never be any sugar-coating when relaying messages, even if the news is bad or uncomfortable.
• Dishonesty or ‘hazy promises’. Always compare an agent’s fees and contract conditions against those of other agents - although some may seem cheaper upfront, there might be more than a few missing inclusions that wind up costing you much more in the end.
So how can vendors protect themselves against falling victim to unethical agents?
Protecting yourself from falling into an unethical vendor / agent partnership means doing a little homework. That’s because finding a professional who values ethics as much as you do is crucial.
Here are four things you can do to ensure you're teaming up with the right agent:
- Do your research.
Find out roughly what your property is worth before you start the process. Online resources like realestate.com.au are good sources of information when you want to know what’s happening in your local area and the market overall. Go in armed with some idea of what you think you’d like to see happen. Ill-informed = easily convinced.
Natalie highlights the importance of being aware of the local real estate market conditions.
"Knowledge is power, and a good agent understands this. An honest agent will be happy – motivated, even - to share market insights with you, answer any questions and explain what the answers may mean for your property.”
- Research and Interview multiple agents to find the best fit.
Start with extensive online investigation. Look for agents with positive reviews, strong local market knowledge and a transparent track record. And don’t shy away from asking for references - a trustworthy agent will be proud to share the experiences of their past clients.
Natalie suggests starting with a thorough background check.
"Look up the agent’s past listings, read online reviews, and, most importantly, meet them face-to-face. You want someone who’s not just selling a property but is committed to selling it the right way."
She also stresses the importance of asking for references. "A good agent has a trail of satisfied clients. Don’t hesitate to ask for - and actually call - these references.
“Most importantly, don’t settle on the first agent you meet. Comparing different agents can highlight disparities and guide your choice.”
- Clarify all terms of your agreement before signing anything.
Be clear on every detail and understand the fine print within any agreement an agent presents.
From commission to marketing fees, make sure there are no surprises. Get everything in writing, and look out for clauses about exclusivity, duration and obligations - having documentation is crucial for accountability.
"Never sign anything you don’t fully understand,” Natalie advises.
“An ethical agent will walk you through each section of your agreement and explain every part, ensuring you’re informed and comfortable before moving on."
- Set clear expectations for communication and updates.
An ethical agent operates with complete transparency, and regular updates are a sign of a committed agent. They should clearly explain their strategy for selling your property, have a clear plan for keeping you informed and be upfront about any potential conflicts of interest.
The journey to find an ethical real estate agent might seem daunting, but ensuring you partner with a professional who respects ethical standards is crucial for achieving a positive, and successful, real estate experience.
By staying informed, asking the right questions, watching out for warning signs and setting clear expectations, you can form a partnership that not only achieves your property goals but does so with the highest ethical standards.
Remember, genuine agents want you to feel confident and informed throughout your selling or buying process – and the right one can make all the difference.
"An honest and ethical agent makes the journey not only successful, but transparent and stress-free. So take the time to find someone who is truly going to represent your interests with integrity,” Natalie concludes.
-------
If you’d like some expert guidance and support, we’re ready and waiting to help.
And if you’re just getting started, or looking for more valuable property selling, buying or investing tips, tricks and hints? Check out these other handy articles on our blog:
And for all the very best property selling, buying or investing advice, why not connect with us?
We Connect Property are your local property market specialists with over 21 years’ experience in selling, buying and managing property in southern Adelaide - check out our 5 star Google reviews to find out what our happy clients think!
Give us a call on 0403 799 983 today, or drop a line to sales@weconnectproperty.com.au - we can’t wait to chat!
To stay connected with everything real estate, follow us!
Facebook | Instagram | TikTok | LinkedIn | YouTube
Or connect with us today for more information : Connect Now
We Connect Property - your Adelaide real estate & property management specialists.
DISCLAIMER: All recommendations made by We Connect Property are general in nature and not to be relied upon as legal or financial advice. To ensure accuracy, we always strongly recommend seeking independent, professional advice tailored to your specific situation before making any investment or financial decisions.