A Breach of Ethics?

I spoke with a number of ForSaleByOwner.com customers from various markets this week, and was alarmed at the number of people who have had the shared experience of real estate agents not acting in the best interest of buyers. What's going on, it seems, is that agents are increasingly not showing FSBO listings to their clients, even if such listings fall under the parameters and price range sought by them. This is even happening in situations where the "for sale by owner" has put their home on the M.L.S. and has advertised that they would pay a commission to an agent who brings a buyer.

Incredibly, such housing discrimination is not considered an illegal practice. It is, however, against the National Association of Realtor's code of ethics. The first code list under its Duties to Clients and Customers reads as following:

"When representing a buyer, seller, landlord, tenant, or other client as an agent, REALTORS^® pledge themselves to protect and promote the interests of their client." (click here to read NAR's Code of Ethics)

Agents who refuse to show FSBO listings are engaging in a deceptive practice that's far from protecting and promoting the best interests of their clients, who undoubtedly wish to see all homes on the market. Rather, they are trying to protect the interests of those agents & brokers who view FSBOs as a threat to their livelihood.

Let me be clear that there are many quality real estate agents who do indeed show their clients homes that are being sold "for sale by owner." It's the minority of agents that are doing otherwise, and their acts threaten to tarnish the reputation of all Realtors throughout the industry.

Nationwide, it's estimated that FSBO listings account for more than 20% of all listings on the market. For agents to ignore such a large segment is not only anti-consumer. It's impeding the sale of homes that is so critical to the healing of the current housing crisis.