Uncovering the Dark Truth Behind Self-Serving Real Estate Agents: How to Protect Yourself from Being Taken Advantage Of
As a homeowner, you may be considering buying or selling a property in the near future.
When finding a Realtor to help guide you through the process, it’s important to be aware of the self-serving bias that can exist in the industry. A self-serving bias refers to the tendency for Realtors to prioritize their own interests and well-being above those of their clients.
To avoid falling victim to a self-serving Realtors, it’s important to look for one who takes a consultation, coaching, and advisory approach to their work. This means that they will take the time to truly understand your needs, goals, and priorities, and will provide guidance and advice that is in your best interest. They will also be transparent and upfront about any potential conflicts of interest.
This behavior would be like a doctor prescribing a medication that they have a financial stake in, rather than the treatment that is most likely to be effective for the patient.
Self-serving bias can be found in many other industries as well, such as finance and automotive. Like if a financial advisor gave the stock and mutual fund advice based on their commission for selling their products versus what is best for your retirement plan. Or a car salesperson showing you cars with the highest commissions instead of a car that is the best deal and best fit for your needs.
To truly serve as a fiduciaries to their clients, Realtors should prioritize the client’s interests above their financial gain and take a more long-term, client-centered approach.
This may mean that the Realtor might recommend a lower-priced property that is a better fit for the client, or that they might take more time to find the right property, even if that means the sale takes longer to close.
It means a Realtor must give advise to a seller that may result in taking longer before the home is listed but will result in a higher price for the seller. Realtors with self-serving bias only care about the sell. A fiduciary care about the client’s best interest first and because they do a good job they make a commission.
It’s important to note that hiring the wrong Realtor can cause harm to their clients in various ways, such as providing inaccurate or incomplete information about a property, pressuring them into making a decision, ignoring their needs and wants, or failing to communicate effectively.
As a homeowner, it’s important to be aware of these potential pitfalls when working with a Realtor, and to choose one who prioritizes your best interests and provides a transparent and honest service. By doing so, you can ensure that your buying or selling experience is a positive one.
The single most important decision you have to make when it comes to selling your home is, What Real Estate Team to hire for the job of selling your home.