Agency and The Lack of Professionalism
The premium, gold standard, first class level of service in the real estate business is “Agency”.
A consumer is entitled to the base level provided to all members of the public, plus two additional important items:
- statutory obligations set out in the Code of Ethics and REBBA, 2002, and
- common law agency duties.
These common law duties consist of the obligations of disclosure, obedience, competence, confidentiality, accounting and loyalty.
This seems great! The price is the same as inferior levels of service, so why are consumers not jumping in?
For some reason there is a lack of perceived value. In part, real estate associations have been troubled in the attempts to explain the service levels and instil confidence in the professionalism within the industry generally among the public. A public which is somewhat skeptical is an advertising challenge.
The real problem with selling the first class agency level of service is perceived value. Consumers don’t think it’s worth it. The general thought seems to be “….I may as well be on my own…”. Obviously, that’s not good.
This is a challenge to the real estate industry in its advertising efforts going forward:
- promote professionalism
- encourage agency relationships
- foster trust and confidence among consumers
Brian Madigan LL.B., Broker
If you are buying or selling in the GTA, either residential or commercial properties, buying from a builder, investing in a condo, or just require general advice about the market, then please give me a call.