Imagine hiring a contractor to remodel your kitchen, and the first thing out of his mouth is how terrible the last guy’s work was — before he’s even shown you what he can do. You wouldn’t feel reassured. You’d wonder why he’s spending more time tearing someone else down than building himself up.
The same dynamic plays out in real estate every day. When agents cut ethical corners to win business, the damage doesn’t stay contained. It erodes consumer trust in the entire profession. And in a post-settlement landscape where public scrutiny of agent value has never been higher, that erosion is something the industry can’t afford.
7 unethical things agents do to compete
Here are the unethical behaviors that are still far too common and why they need to stop.
1. Trash-talking the competition
This is the low-hanging fruit of unethical behavior, and it’s everywhere. Agents who disparage other agents — at listing presentations, in buyer consultations, even on social media — aren’t demonstrating confidence. They’re demonstrating insecurity. The professional move is always to let your competence speak for itself.
When a potential client asks why they should choose you, the answer should never begin with why they shouldn’t choose someone else.
2. Inflating market values to win listings
This one is a slow-motion disaster. An agent tells a seller their home is worth $50,000 more than comparable data supports — not because they believe it, but because they know the seller will choose the agent who delivers the highest number.
The listing sits. Price reductions follow. The seller loses time, momentum and trust. Meanwhile, the agent got what they wanted: the sign in the yard.
Telling a client what they want to hear isn’t service. It’s a transaction built on a lie — and the client always pays the price. The damage extends beyond one deal, too. Every overpriced listing that languishes on the market reinforces the consumer perception that agents care more about getting the listing than getting results.
3. Dual agency without full transparency
Dual agency is legal in many states, but legal and ethical aren’t the same thing. The problem isn’t dual agency itself — it’s agents who minimize or obscure what it means to the client. When both sides of a transaction are represented by the same agent or brokerage, clients deserve a thorough, plain-language explanation of what they’re giving up. Too often, the disclosure is buried in paperwork rather than delivered as a genuine conversation.
4. Steering buyers away from certain properties
This takes many forms, some subtle and some not. An agent who steers clients away from listings with lower buyer-agent compensation, or away from certain neighborhoods based on personal biases rather than client criteria, is violating both fair housing principles and their fiduciary duty.
Your job is to present options that match your client’s needs — all of them — and let the client decide. The moment your guidance is shaped by what’s best for your paycheck rather than what’s best for your client, you’ve crossed a line that no amount of sales skill can erase.
5. Office exclusive – non-MLS listings
Then there’s the question of office-exclusive listings — properties marketed within a brokerage rather than being shared on the MLS. These get a bad rap, and sometimes deservedly so when agents use them purely to double-end a deal without regard for the seller’s interests. But when handled with full transparency, exclusive listings can genuinely serve certain clients.
Some homeowners value privacy, want tighter control over showings or prefer the simplicity of one agent managing the entire transaction from start to finish. The keyword is “informed.” If a seller fully understands the potential trade-offs — fewer showings, a possibly lower sale price, reduced market exposure — and still chooses this route, that’s their right. It’s their home.
What crosses the ethical line is when agents steer sellers toward exclusives without clearly explaining what they’re giving up or when the motivation is the agent’s commission, rather than the client’s preference. Get it in writing. Document the conversation. And make sure the decision belongs to the homeowner, not your bottom line.
6. Misrepresenting property conditions
Whether it’s downplaying known defects, using misleading photos or using creative language to obscure real problems, misrepresentation is one of the fastest ways to destroy trust — and invite litigation. The agent who describes a property with a crumbling foundation as having “character and potential” isn’t being creative. They’re being dishonest. Disclose early, disclose fully and let the market respond to the truth.
7. Favoring in-house offers over fellow MLS members
One of the most corrosive practices in the business happens behind closed doors during the offer process. Some listing agents quietly favor offers from within their own brokerage — or their own buyers — over those submitted by fellow MLS members.
It shows up in subtle ways: downplaying the strength of an outside offer, nudging the seller toward the in-house deal by reducing their own commission to “sweeten” the numbers or failing to present competing offers with equal enthusiasm and objectivity in a timely manner.
In some cases, outside agents never even get a return phone call. The seller thinks they’re getting the best deal. In reality, they’re getting the deal that benefits their agent the most. Every offer deserves to be presented fairly, fully and on its own merits — regardless of which brokerage it came from.
The moment a listing agent puts a thumb on the scale in favor of their own company’s offer, they’ve abandoned their fiduciary duty to the seller and undermined the cooperative system that MLS membership is built on.
This is why it’s best, from a legal standpoint, among other reasons, for a listing agent to allow the buyer’s agent to present their own offer with the listing agent present.
Why this matters now
In a market where consumers are demanding more transparency, more professionalism and more accountability, agents who operate with genuine ethical standards have never had a bigger competitive advantage.
It isn’t a sacrifice when you’re the agent who:
- Tells the truth about pricing
- Discloses fully
- Never badmouths a competitor
- Puts the client’s interest ahead of your own commission
It’s a business strategy that compounds over time through referrals, reputation and repeat business.
The agents who cut corners may win a deal today. The agents who hold the line will build a career. The market is watching and so are the clients. Make sure what they see is worth trusting.
Darryl Davis is the CEO of Darryl Davis Seminars. Connect with him on Facebook or YouTube.
