Real Estate Brokers Can Change the Future of Real Estate – Here’s How

Restoring honor to the real estate profession requires a collective effort from broker-owners, leaders, and individual agents. 

I think brokers need to take some key actions that, in my view, should be taken to enhance the profession’s reputation and promote ethical practices.

First, we should no longer outsource our ethics or standards to NAR, the states, or, God forbid, Zillow. 

Second, we have to take an interest. 

Third, we must stop treating our agents as numbers and non-people because they are 1099 contractors and not employees.  

Frankly, we treat agents worse than employees. We expect them to pay us while offering nothing because we hold their licenses.

Here are 10 actionable steps every broker-owner should take to help turn the tides of the industry and make a better business model for all involved parties. 

1. Establish and Enforce the Real Estate Code of Ethics

Broker owners and leaders should establish clear and comprehensive ethical guidelines that outline the expected behavior of all agents within their organizations. These guidelines should address issues such as honesty, transparency, fair dealing, and adherence to all applicable laws and regulations.

Listen, you can make meetings mandatory. You may not be able to tell someone to be at work at 8 a.m. if they’re not traditionally employed, but you can still have standards. 

A meeting is something doable, and it is something a professional will make time to attend when it’s required. You can hold your agents accountable for attending a meeting. Not all agents can hold themselves accountable, so that’s where you come in to help them learn and grow. You’re a mentor; that’s your job. 

If they don’t like your standards, they can hang their licenses elsewhere. 

2. Provide Training and Continuing Education for Real Estate Agents

Broker-owners should provide comprehensive training and continuing education opportunities for their agents to ensure they are up-to-date on industry knowledge, legal requirements, and ethical practices. 

This training should cover topics such as fair housing laws, conflict of interest avoidance, proper disclosure obligations, and, most importantly, any changes to licensing law. That’s exactly why I’m doing this guide – it’s an important thing for all agents to know about. 

3. Ensure Agents Understand Fiduciary Responsibilities

Brokers must be able to ensure agents understand their fiduciary responsibilities and how they relate to fair compensation. 

The agency defines the legal relationship and fiduciary duty in real estate between agents and their clients, while compensation outlines the financial arrangement for the agent’s services. 

Both agency and compensation are essential components of the residential real estate brokerage business, ensuring that agents act in the best interests of their clients and are fairly compensated for their work. In a perfect world, these align. 

4. Center a Workplace Culture Around Accountability and Transparency

Why does accountability and transparency matter?

All good brokers should encourage open communication, provide clear channels for reporting ethical concerns, and promptly address any complaints or allegations of misconduct. 

This not only helps your agents do their best work, but it also protects you from potential issues that could arise if agents don’t know what they’re doing. 

5. Embrace Integrity and Client-Centric Values

To be perfectly frank, if you’re not already emphasizing the importance of integrity and client-centric values within the organization, you’re doing it wrong.

I recommend encouraging agents to put their clients’ interests first, prioritize honest and transparent communication, and avoid any actions that could compromise the trust of their clients. 

6. Have a Reward System

Everyone loves being told they’re doing a great job – and taking the time to recognize your best agents is going to work in your favor. 

Publicly recognize and reward agents who demonstrate exceptional ethical conduct. 

This could involve highlighting their achievements, providing incentives, or nominating them for industry awards. Remember: The goal is to support and retain good people; we need to do everything we can to achieve this. 

7. Collaborate with Industry Organizations 

We saw what happens when our industry standards and best practices fall by the wayside and aren’t valued as highly as they should be. The NAR lawsuit opened many eyes to the deeper issues within our business – but we can fix it. 

I suggest making a point to work collaboratively with industry organizations, such as the National Association of Realtors (NAR), to promote ethical standards and best practices across the industry. 

We should all agree to support initiatives that enhance professionalism, transparency, and consumer protection. It’s in our best interest. 

8. Be a Champion for Consumer Protection

We always aspire to do what’s best for our clients. Therefore, all brokers should strive to champion consumer protection measures that safeguard the interests of buyers and sellers.

I think it’s important to support legislation that promotes fair disclosure practices, combats fraud, and ensures that consumers have access to accurate and reliable information. Ideally, you should be able to articulate the value of an exclusive buyer-agency agreement. 

9. Educate the Public

We know the ins and outs of the real estate industry – but our clients don’t. That’s why I think it’s so important for brokers and agents to commit to educating the public about the importance of ethical real estate practices and how to identify and avoid potential scams or unethical behavior. 

Provide resources and guidance to consumers to help them make informed decisions when buying or selling property – and get the facts on your websites. 

10. Build Your Business For Today AND Tomorrow

There’s nothing easy about being in real estate. So many people get the wrong impression of what we actually do. There’s a lot of misleading information. However, you need to focus on running your business so it has the chance to be successful today and in the future. 

This is a big ask; it has never been easy to accomplish in any industry. Owning a business is always harder than you think it’s going to be, but doing the right thing pays off. 

By implementing these measures, real estate broker-owners and leaders can play a crucial role in restoring honor to the profession, fostering a culture of ethical conduct that prioritizes the best interests of clients and upholds the integrity of the real estate industry.

Final Thoughts

Here’s a tough pill to swallow: We don’t do well by ourselves. 

The last four years have proven as much; we lost our ability to relate to customers and clients and each other. The fallout is negative public perception and lawsuits like this.

Realtors® should be held to a higher standard – and brokers even higher than that.

It’s time to take back what is ours and assume our responsibility and rightful place at the center of this transformation. 

We are entering the golden age of the new real estate professional. It’s time to get with the times and be prepared to move our profession into the future through whatever means are necessary.