Enhance Credibility with the Consumer

Public trust is hard-earned and elusive. Professionals such as politicians, advertising executives, telemarketers, lawyers, and sales professionals—including insurance and real estate agents—often face distrust and skepticism from consumers regarding their intentions.

Recent high-profile class-action lawsuits have further tarnished the real estate industry’s reputation. These lawsuits accused the industry of colluding to inflate commission rates, limit competition, and undermine transparency. The accusations, accepted by a jury and amplified by national media, have significantly altered the consumers’ perception of real estate agents.

Additionally, rule changes driven by these lawsuits—such as decoupling commissions between seller’s agents and buyer’s agents—have increased confusion and, according to many, reduced transparency.

It is essential that consumers clearly understand the value of using a real estate professional and are fully informed about the services they are paying for. To regain consumer confidence, the real estate industry must shift from an agent-centric approach and place the consumer at the forefront. Transparency, particularly in how buyer agents are compensated, must be prioritized. Demonstrating ethical practices and embracing reforms that enhance accountability are critical steps in rebuilding credibility.

A public awareness campaign, like the “Got Milk?” campaign, could help. Just as it reminded consumers of milk’s importance in everyday life; the real estate industry could benefit from a “Got Representation?” campaign. This would highlight the value of professional representation in buying or selling a home. Consumers need to understand the roughly 180 tasks involved in an average real estate transaction and the financial and legal pitfalls they face without expert guidance.

Brokers and agents should actively educate consumers, especially first-time homebuyers, on affordability, the homebuying process, and the benefits of homeownership. Brokerages can also leverage this opportunity to create clear, client-focused buyer representation agreements. With everyone focusing on transparency, integrity, ethical practices, and exceptional representation, the perception of real estate professionals—and the value they offer—will improve.