5,279,888
Article 1 Standard Practice 1-3
"Realtors in attempting to secure a listing, shall not deliberately mislead the owner as to the market value."
One might argue that if an agent has told a seller the price is wrong and the seller still wants to list the house at the higher price that the agent's obligation has been satisfied. But the act of taking on the overpriced listing can also be construed as deliberate agreement that the price is viable and thus misleading to the seller that it's achievable. If an agent truly believes a listing is grossly overpriced, why not stand behind the convinction?
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Teri Pacitto
Westlake Village, CA
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Alan May
Evanston, IL
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Kathleen Daniels, Prob...
San Jose, CA
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Sandy Padula & Norm Pa...
, CA
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Ron and Alexandra Seigel
Carpinteria, CA
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Dan & Laurie Pittsenba...
Bellingham, WA
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Bob "RealMan" Timm
Minot, ND
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Jeff Pearl
Lovettsville, VA
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Lyn Sims
Schaumburg, IL
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David M. Dwares
Fort Lauderdale, FL
1,096,480
I'm with you Greg. If the seller wants to list at a certain price, and the broker advises in writing that seller acknowledges they are offering a price beyond the current market, it's the sellers freaking property and they can do what they want.
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Debe Maxwell, CRS
Charlotte, NC
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Ryan Huggins - Thousan...
Thousand Oaks, CA
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Greg Cremia
Nags Head, NC
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Ron and Alexandra Seigel
Carpinteria, CA
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Candice A. Donofrio
Fort Mohave, AZ
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Dan & Laurie Pittsenba...
Bellingham, WA
5,460,042
If you are a Realtor®, in the Code of Ethics & Standards of Practice, Article 1, 'Duties to Clients and Customers,' "REALTORS®, in attempting to secure a listing, shall not deliberately mislead the owner as to the market value."
It's not about listing at 'their price' but, about 'buying the listing.'
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Kathleen Daniels, Prob...
San Jose, CA
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Ryan Huggins - Thousan...
Thousand Oaks, CA
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Richard Weeks
Dallas, TX
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Nina Hollander, Broker
Charlotte, NC
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Ron and Alexandra Seigel
Carpinteria, CA
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Dan & Laurie Pittsenba...
Bellingham, WA
5,452,649
Just be honest! The next step is up to you and the seller!
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Debe Maxwell, CRS
Charlotte, NC
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Sandy Padula & Norm Pa...
, CA
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Dan & Laurie Pittsenba...
Bellingham, WA
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Candice A. Donofrio
Fort Mohave, AZ
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Bob "RealMan" Timm
Minot, ND
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Doug Dawes
Topsfield, MA
489,048
There is the Code of Ethics and then there is one's own personal ethics. It's up to each of us to determine if our own ethics are more or less restrictive than the NAR Code of Ethics.
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Ryan Huggins - Thousan...
Thousand Oaks, CA
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Debe Maxwell, CRS
Charlotte, NC
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Nina Hollander, Broker
Charlotte, NC
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Dan & Laurie Pittsenba...
Bellingham, WA
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Bob "RealMan" Timm
Minot, ND
1,868,448
I have also heard that agents 'leading along a seller' at an elevated price just to get the listing is also an ethics violation. I don't care what number violation it is.
After all the ethics courses you have to take in your state, you don't know?
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Nina Hollander, Broker
Charlotte, NC
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Debe Maxwell, CRS
Charlotte, NC
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Ron and Alexandra Seigel
Carpinteria, CA
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Dan & Laurie Pittsenba...
Bellingham, WA
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Bob "RealMan" Timm
Minot, ND
1,252,228
There is nothing that violates our Code of Ethics. Many in Real Estate believe we should be market makers, not market sellers. We are to advise our clients. In the end, the client makes the decision.
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Debe Maxwell, CRS
Charlotte, NC
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Greg Cremia
Nags Head, NC
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Dan & Laurie Pittsenba...
Bellingham, WA
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Bob "RealMan" Timm
Minot, ND
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Doug Dawes
Topsfield, MA
3,416,322
It is not unethical to list a home what the seller wants. There are occasions i am at a listing appointment, i let the know what the value is based on what has sold and they have a higher price in mind. I like to ask how they arrved at that price. I will take a listing and let the seller know if no offers in 2 weeks we need to adjust the price to where it the comps say it should. I even have them sign a post dated price reduction. Some listings i walk away from when the sellers is not reasonable on price.
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Debe Maxwell, CRS
Charlotte, NC
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Greg Cremia
Nags Head, NC
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Dan & Laurie Pittsenba...
Bellingham, WA
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Bob "RealMan" Timm
Minot, ND
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Doug Dawes
Topsfield, MA
5,774,095
Greg,
Unethical is overstating the issue. If you present a CMA and the seller has a fixed idea of where the price should be, and an agent takes it at that price, it is not unethical. My clients may do that with a clear understanding that the price reduction will happen if the home does not sell in X number of days. If that kind of agreement is not agreed upon, then they move on...There is nothing wrong with that. A
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Nina Hollander, Broker
Charlotte, NC
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Debe Maxwell, CRS
Charlotte, NC
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Greg Cremia
Nags Head, NC
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Bob "RealMan" Timm
Minot, ND
469,575
First don't confuse "Ethics" and "Justice". Ethics are actions or inactions that one takes on himself, as an individual, to enhance his survivial. Both as an individual but also as a human being living amongst other human beings on a planet with limited resources. Justice is what happens when someone can't keep their own ethics in. The group takes action to put the ethics "in" on the guy who can't or won't keep his own ethics in.
Ok enough soapbox. To me there are many many places to refer to. In our state our Agency Law pamphlet has several points:
In the "Duties of a Broker Generally" paragraph b) To deal honestly and in good faith.
So there's that one.
Under the Seller's section it mentions .... taking no action the is detrimental to the seller's best interest.... (again that's seller's best interest).
So whether or not its "Ethical" would depend on the agents motivations and actions. Is he being true to himself and what he believes to be ethical or does he know he's misleading a seller just to get a listing (being selfserving). Or stated another way - if one takes an over priced listing because the seller wants to list at that price is different than an agent intentionally and knowingly falsely telling a seller his home is worth much more just to get the listing (you know, intentionally lying/misleading).
I'll go check the Realtor Code of Ethics just to see if there's anything there. But again a "Code" of ethics would only be code as longs as it is not enforced. Once enforced, it's no longer a code but a rule or law and it's justice not ethics (in my opinion).
If you simply wanted a Code item Nina Hollander gave you the best one. Any deliberate misleading is fairly obvious by most to be a nonsurvival activity in the long run.
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Debe Maxwell, CRS
Charlotte, NC
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Bob "RealMan" Timm
Minot, ND
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Ron and Alexandra Seigel
Carpinteria, CA
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Candice A. Donofrio
Fort Mohave, AZ
1,713,581
It's a movable feast.
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Debe Maxwell, CRS
Charlotte, NC
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Nina Hollander, Broker
Charlotte, NC
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Bob "RealMan" Timm
Minot, ND
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Dan & Laurie Pittsenba...
Bellingham, WA
5,584,178
you were not misleading them to get the listing....you told them where it should be.... no code violation.
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Ron and Alexandra Seigel
Carpinteria, CA
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Dan & Laurie Pittsenba...
Bellingham, WA
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Candice A. Donofrio
Fort Mohave, AZ
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Debe Maxwell, CRS
Charlotte, NC
930,848
What Nina said. And agents aren't always correct in determining value. Sellers, appraisers and agents come up with different values for the same property all the time.
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Debe Maxwell, CRS
Charlotte, NC
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Nina Hollander, Broker
Charlotte, NC
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Dan & Laurie Pittsenba...
Bellingham, WA
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Bob "RealMan" Timm
Minot, ND
2,838,137
Don't know about "codes" to your question but "results" is my standard
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Debe Maxwell, CRS
Charlotte, NC
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Sandy Padula & Norm Pa...
, CA
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Dan & Laurie Pittsenba...
Bellingham, WA
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Bob "RealMan" Timm
Minot, ND
921,504
This is a question with a really good purpose.
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Greg Cremia
Nags Head, NC
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Dan & Laurie Pittsenba...
Bellingham, WA
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Bob "RealMan" Timm
Minot, ND
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Lyn Sims
Schaumburg, IL
1,534,364
The NAR ethics class I took for the NAR requirement, said that "knowingly taking an overpriced listing, that you know will not sell at that price, simply to have a listing and with the hope/intention of getting price reductions later" was buying the listing and a violation of article 1, section 1-3.
I don't see this as being applicable if you think the home is worth 800 and the seller thinks it's worth 840 and you agree to take the listing. I think it's applicable if you know it's worth 800 but you tell them it's worth 840.
I don't see your example in the question as being a violation.
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Nina Hollander, Broker
Charlotte, NC
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Debe Maxwell, CRS
Charlotte, NC
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Greg Cremia
Nags Head, NC
6,654,273
Nothing unethical as long as the seller knows what is going on, the unethical part comes in when an agent misleads the seller and claims that they can get the higher price.
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Bob Crane
Stevens Point, WI
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Greg Cremia
Nags Head, NC
1,762,404
Be honest and explain the potential of overpricing at list. If they still insist, you can choose to walk away or take the listing. There's nothing unethical in that. It may not be a wise decision to take an overpriced listing, but who hasn't done that?
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Debe Maxwell, CRS
Charlotte, NC
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Greg Cremia
Nags Head, NC
8,116,618
The problems arise when the sellers claim they were mislead.
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Nina Hollander, Broker
Charlotte, NC
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Debe Maxwell, CRS
Charlotte, NC
1,748,877
Interesting compilation of conflicting opinions here. I like Richie Alan Naggar 's response the best
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Debe Maxwell, CRS
Charlotte, NC
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Bob "RealMan" Timm
Minot, ND
5,981,875
2,115,836
You're only breaking the code of ethics if you lead the seller to believe that their listed price isn't unreasonable.
I think the argument can be made that "agreeing" to list at that price is tacit approval that there's some possiblity that you might be able to attain a sale price somewhere near that price.
So, if you think the property is worth $350,000, and the client has asked you to list for $375,000 I think you're okay... assuming that you've explained the the seller that you believe that's higher than we should list... but let's see how it goes.
If, on the other hand, you think it's worth $350,000 and the seller has insisted they want to list for $500,000... and that's the only way I'll give you the listing... I think you are violating Article 1 by agreeing (with the plan in your mind of beating them up for continuing price reductions along the way)...
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Nina Hollander, Broker
Charlotte, NC
3,418,747
What is the expression ... we can lead a horse to water but ..... we can't make it drink it.
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Debe Maxwell, CRS
Charlotte, NC
1,153,799
In the luxury market the "code" is you're not going to get that listing. In lieu of that happening the agent acquiesces and therein lies the "violation" to all. Unethical, maybe, although I've got nothing to show!
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Debe Maxwell, CRS
Charlotte, NC
4,800,282
I don't think it's unethical. Depending on the sellers and the price it might be a waste of time and hurt your business.
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Greg Cremia
Nags Head, NC
2,505,803
Don't know what you are talking about Greg.
Maybe the "ethics" are the agents ethics and not a code. I don't want to sell a house I think is grossly over priced because I don't want my Buyer to get screwed.
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Dan & Laurie Pittsenba...
Bellingham, WA
1,598,552
3,986,423
1,428,597
There is no violation of the COE based on the phrasing of your question.
919,513
Don't believe there is a specific code that says you can't list at the seller's price. Check your local laws.
2,245,007
4,434,227