Unethical Agents
These are the agents who give the industry a bad name—the ones who end up in lawsuits or the news for all the wrong reasons. While some are blatantly dishonest, most unethical behavior in real estate is more subtle—and just as dangerous.
A few years ago, Inman News surveyed agents nationwide and published a list of questionable practices. Here are a few highlights:
- Faking competition: Some agents falsely claim there are multiple offers or high buyer interest. Nearly 95% of agents surveyed agreed this is unethical.
- Refusing to show certain listings: Some agents avoid homes listed by brokerages they dislike. While rare in Kansas City, I’ve seen it. I’ve personally had an agent tell me, after missing a key deadline on a contract, “I’ll never show one of your listings again!”—because I wouldn’t extend her client’s inspection period. That’s not professional, and it certainly isn’t ethical.
- Pushing their own listings: Some agents steer buyers toward their own listings, even when they know it’s not a good fit, just to double their commission. Buyers hate this—and rightfully so.
- Overpricing a listing to win the client: This is common but deceptive. Agents sometimes agree to a price they know is too high just to secure the listing. Their hope? The seller will eventually drop the price—or they’ll pick up other clients from the traffic. Either way, the seller is misled from the start.
- Dual agency: Representing both the buyer and the seller in the same transaction creates a clear conflict of interest, yet only 26% of agents surveyed thought it was a problem. It’s especially common in new construction, where unrepresented buyers walk into sales offices. But let’s be honest: how can one agent truly represent the best interests of two opposing parties?
- Lying about experience or results: One seller I met told me their last agent claimed to have sold over 100 homes in a decade. I checked the MLS and showed them she had only sold eight homes—and just got her license the year before. They were furious. That same agent later beat me out for a listing by promising a $10,000 higher sale price. Four months later—after two price drops—the home finally sold for less than I originally recommended.
Sadly, stories like these are common. Each year, unethical agents get into legal trouble for issues like failing to disclose defects, offering legal advice, breaching fiduciary duties, or misleading clients.
The bottom line? Unethical agents are motivated by one thing: money. When business is slow, some will do or say anything to win a listing—even if it means bending the truth or violating your trust.
To better understand what ethical behavior should look like, I encourage you to review the National Association of Realtors® Code of Ethics.