One of the things I’ve observed over decades in real estate is this: Too many in our industry accept “what is” as “what should be.” The rules, the processes, the forms, the practices: Because they exist, it’s assumed they’re right. But what if they aren’t?
What if some, even most, of what we take for granted in our business was built for someone else’s benefit, not yours, not your clients’?
I’m not saying everything is wrong. I’m not even saying anything is wrong. While I personally believe a lot of questionable real estate industry standards should be changed, that’s me, not you.
The point is to train your mind to challenge. To ask uncomfortable questions. To see yourself not as a follower of what exists, but as a challenger of what could be better. And if you conclude that everything is as it should be, that’s fine.
Very few in our industry become true thought leaders. Why? Because they don’t lead how others think, change perspectives or effect positive change. Consumers respect leaders.
I’m not going to suggest conclusions for you. I am going to give you seven real estate “standards” to question. With each one, ask yourself: Is this really best for consumers? Is it really best for me and our industry? If not, what would be better?
7 questionable real estate industry standards
1. MLS: tool or trap?
Should MLSs be an optional tool for selling homes or a mandatory process that every seller and listing agent is forced to use? Do mandatory participation rules, like the Clear Cooperation Policy, truly serve sellers and agents or were they enacted to be a trap that keeps the MLSs and NAR relevant?
2. Recruiting frenzy vs. selective excellence
Should real estate firms focus on agent quality over agent quantity, hiring carefully to protect consumers and brand reputation, or keep incentivizing agents to recruit anyone with a license. Which path is better for consumers and for our industry?
3. Zillow’s leads
Should portals that display our listings (like Zillow) be allowed to divert buyers interested in those homes to agents who pay for leads? Or should buyers be connected directly to the actual listing agent who knows the property best?
4. ‘Fairness’ and transparency
Do we owe buyers full transparency about a listing’s days on market and price adjustments? Is that really fair, or does it result in a marketplace that gives buyers an edge while punishing sellers? The only industries that mandate time disclosure are food and medicine; and only because it’s important to protect our health.
5. The buyer agent dilemma
Should sellers feel obligated to pay buyer’s agent commissions to attract showings and offers? Does it best serve buyers when their agent is paid by their negotiating adversary, the seller?
6. The fixed commission
Is it “fair” to charge a fixed-percentage fee (5 percent, 6 percent or whatever) regardless of the sale price, time involved or marketing spend? Or is it simply tradition, carried forward without question? In the alternative, is it fair that we aren’t paid a nickel when sellers change their mind about selling, switch agents for no good reason or simply won’t accept fair offers?
7. 1 marketplace or many?
Do buyers deserve to see all listings in one place for convenience? Or should sellers and their listing agent be free to market homes however and wherever they choose? Would unfettered marketing freedom lead to competition among home search portals that benefits sellers, buyers and our profession?
The bigger point
These aren’t “answers.” They’re invitations.
Invitations to stop being a standard follower and start being a standard challenger.
Did I write these questions in an unbiased way? No. In transparency, I’m trying to influence your thinking to see our industry in a way I believe best balances fairness among those we serve.
Because here’s the truth: What’s best for consumers is always what’s best for our industry. And when you put yourself on the side of challenging for better practices, better transparency and better outcomes, you not only elevate your business, you elevate the whole profession.
So here’s my challenge to you: Don’t accept things because that’s how they’ve always been done. Don’t believe in rules just because they’re written. Don’t let tradition dictate your future.
Instead, question everything, including these seven real estate industry standards. That’s how we make it better for everyone.
