Imagine hiring a contractor to remodel your kitchen. And the first thing out of his mouth is how terrible the previous person’s job was before he shows what he can do. You won’t feel safe. You wonder why he spends more time tearing down others than building himself up.
The same dynamics occur every day in real estate. Even if agents cut ethical corners to win business, the damage will not stop. It undermines consumer confidence in the industry as a whole. And in a post-settlement environment where public scrutiny of agent values is at an all-time high, that erosion is unacceptable to the industry.
7 unethical things agents do to compete
Here are some unethical practices that are still all too common and why they need to stop.
1. Idle talk about competition
This is an easy result of unethical behavior and it exists everywhere. Agents who look down on other agents don’t project confidence in their listing presentations, in their consultations with buyers, or even on social media. They express anxiety. Professional conduct is always about letting your abilities speak for themselves.
When a potential customer asks why they should choose you, the answer shouldn’t start with why they shouldn’t choose someone else.
2. Inflate market value to win listing
This is a slow motion disaster. The agent tells the seller that his home is worth $50,000 more than comparable data support. Not because we believe in it, but because we know that sellers will choose the agent who offers the highest numbers.
The list remains the same. Price reductions continue. Sellers lose time, momentum, and credibility. Meanwhile, the agent got what he wanted: a yard sign.
Telling clients what they want to hear is not a service. This is a trade built on lies, and the client always pays the price. The damage spreads beyond a single transaction. Every overpriced listing that slumps in the market reinforces the consumer’s perception that the agent cares more about getting the listing than getting results.
3. Dual agency without full transparency
Although dual agency is legal in many states, law and ethics are not the same thing. The problem is not the dual agency itself. These are agents who trivialize or obfuscate what dual agency means to their clients. If both sides of a transaction are represented by the same agent or broker, the customer should be given a thorough and plain language explanation of what they are giving up. Disclosures are often buried in documents rather than conveyed as genuine conversations.
4. Turn buyers away from certain properties
This comes in many forms, some subtle and some less so. Agents who steer clients away from listings with lower buyer agent compensation or steer them away from certain neighborhoods based on personal bias rather than client standards violate both fair housing principles and fiduciary duties.
Your job is to present all the options that meet your client’s needs and let them decide. The moment your guidance is shaped by what’s best for your paycheck rather than what’s best for the client, you cross a line that no amount of sales skill can erase.
5. Office Only – Non-MLS Listings
Then there’s the issue of office-only properties, or properties sold within a brokerage rather than shared on the MLS. These get a bad rap when agents use them purely to double-end a deal without considering the seller’s interests, but sometimes they deserve it. However, when handled with complete transparency, exclusive listings can truly serve specific customers.
Some homeowners value privacy, want more control over showings, or prefer the simplicity of having one agent manage the entire transaction from start to finish. The keyword is “information”. If a seller fully understands the potential trade-offs (less showings, lower sales price, less market exposure) and still chooses to go this route, that’s their right. It’s their home.
Ethical lines are crossed when agents steer sellers toward exclusive products without clearly explaining what they are giving up, or when the motive is the agent’s commission rather than the client’s preferences. Please receive it in writing. Document the conversation. And make sure the decision belongs to the homeowner, not your interests.
6. Misrepresentation of real estate conditions
Whether it’s downplaying a known defect, using misleading photos, or using creative language to obscure the real issue, misrepresentation is one of the quickest ways to destroy trust and invite litigation. An agent who describes a property whose foundations are crumbling as having “character and potential” is not being creative. they are dishonest. Disclose early and fully so the market reacts to the truth.
7. Prioritize internal offers over other MLS members
One of the most harmful acts in business happens behind closed doors during the offer process. Some listing agents secretly prioritize offers from their own brokerages, or even their own buyers, over offers submitted by other MLS members.
It manifests itself in subtle ways. Downplaying the strength of an external offer, reducing the seller’s own commission to “sweeten” the numbers to steer the seller into an internal deal, or failing to present competing offers with equal enthusiasm and objectivity in a timely manner.
In some cases, you may not even receive a return call from an external agent. Sellers think they are getting the best deal. In fact, they are getting the most profitable contracts for their agents. All offers, regardless of which intermediary they come from, should be presented fairly and completely and on their own merits.
The moment a listing agent agrees to their company’s offer, they abdicate their fiduciary duty to the seller and undermine the cooperative structure that is the foundation of MLS membership.
For this reason, especially from a legal standpoint, it may be best for a listing agent to allow the buyer’s agent to make their own offer in the listing agent’s presence.
Why is this important now?
In a market where consumers demand more transparency, professionalism and accountability, agencies that operate with true ethical standards have a greater competitive advantage than ever before.
If you are an agent who:
Tell the truth about pricing Have full disclosure Never badmouth your competitors Put your clients’ interests ahead of your own fees
It’s a business strategy that grows in complexity over time through referrals, reputation, and repeat business.
An agent who cuts corners may win a deal today. Agents who toe the line make careers. The market and customers are paying attention. Make sure what they see is trustworthy.
