When you work with a REALTOR®, you are placing your trust in a professional who follows a strict Code of Ethics, ensuring that your best interests are always prioritized. The National Association of REALTORS® (NAR) Code of Ethics requires REALTORS® to put their clients' needs above their own, whether you're buying or selling a home. This ethical obligation means that a REALTOR® cannot make decisions or take actions that prioritize their own financial gains or commissions over your needs. For both buyers and sellers, this code ensures transparency, fairness, and trust in every transaction.
How REALTORS® Act in a Buyer's Best Interest
For buyers, a REALTOR® is ethically required to inform you about all available homes that meet your criteria, regardless of whether the seller is offering compensation to your agent. Even if the compensation offered is less than what you have agreed to pay in your written buyer agreement, your agent must act in your best interest and show you all suitable homes. This ensures you are never limited in your options based on the financial incentives that the agent might receive.
How REALTORS® Act in a Seller's Best Interest
As a seller, you can expect your REALTOR® to be equally committed to your best interests. They will explain the costs and benefits of various marketing strategies to ensure your home gets maximum exposure. Importantly, a REALTOR® cannot steer potential buyers away from your home based on the amount of compensation you offer. The REALTOR® Code of Ethics prohibits such steering, ensuring that your home is marketed fairly to all interested buyers.
Avoiding "Steering" and Promoting Transparency
The practice of “steering” buyers or sellers based on financial incentives is strictly forbidden under the NAR Code of Ethics. To further protect against steering, the use of written buyer agreements became mandatory on August 17, 2024. These agreements ensure that both parties are transparent about the services provided and the compensation structure, creating a clear and ethical framework for the transaction.
For more information about how the REALTOR® Code of Ethics can benefit you, visit www.labradarealty.com, email albert@labradarealty.com, or call 786-290-3594.