What Agents are Saying

One of the unique aspects of the real estate business is the relationship between brokerages and their supported agents. In many instances, agents work as independent contractors autonomous from their parent brokerage, advertising themselves as both a part of the company and a separate sales entity. As a result, much the way brokerages do, agents can sometimes exaggerate or lend themselves to vagueness.

The major difference between brokerages and individual agents, at least in terms of advertising, is numbers. With brokerages, when a company makes a significant industry claim, like saying its No. 1 in terms of sales volume, the field of competitors in which to cross examine is relatively shallow, which makes it difficult to advertise patently false claims. Apply the same logic to the plethora of agents actively marketing themselves and verifying claims becomes considerably more of a challenge, especially if the message doesn’t provide particularly clear context.

For instance, let’s say John Smith, top producer for ACME Realty, writes on his website, “No. 1 sales team in Illinois, and No. 1 sales team in Chicago for the third year in a row.” This would be fine, only, as Chicago Agent magazine’s 2013 Real Data report shows, Mario Greco of Berkshire Hathaway HomeServices KoenigRubloff Realty Group is No. 1 sales agent in Illinois. With that being said, it might seem obvious that Smith is taking liberties with his words. Right? Not necessarily.

What the reader, who, in this case, would be a potential buyer or seller, doesn’t know is that John Smith is referring specifically to his accomplishments within the context of ACME Realty in Illinois. His No. 1 status represents a position relative to his ACME colleagues, both in Illinois and Chicago. In this respect, Smith has succeeding in making an accurate and verifiable claim – difficult though it may be – but at the same time, he’s also succeeded in confusing a hopeful client who strives to work with the area’s true No. 1.

By omitting such information, as often happens, agents leave a significant amount of interpretation up to the client, which may lead to confusion during the initial selection process. In the event a client blames the advertisement for his or her confusion, the results may put both agents and brokerages in a position difficult to defend.