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Ethical Dilemmas: The debate over expired listings

I had a conversation with a small-town broker last month where we discussed the ongoing concern regarding privacy legislation and real estate agents contacting expired listings with information gained through MLS.

In a nutshell, per my discussion with the Real Estate Council of Alberta (RECA), privacy legislation says that information can only be used for the purpose it was provided. 

Since sellers do not provide their information for other agents to contact them to list, it cannot be used for such purposes (please note the appropriate level of government in your province is the final authority). 

 

“This is a good example of the complexity of ethical dilemmas we often face in our day-to-day…”

 

Still, some agents are prepared to take the risk to contact these sellers with some success and often no or little repercussions.

Full disclosure: I am not completely a fan of privacy legislation extending to not contacting previous unsuccessful sellers, at least not a blanket ban. I understand the reasoning, though I feel it is overreach; more on that later.

This is a good example of the complexity of ethical dilemmas we often face in our day-to-day in this industry. To truly understand, we must ask who is affected, and we must apply moral reasoning.

In asking who is affected, we could say it directly affects both the consumer who values their privacy and the consumer who wants every opportunity to market their property and agents looking to pursue their businesses.

 

“…some consumers do not wish to be contacted by every agent in town, and we must respect that.”

 

To arrive at the right thing to do, moral reasoning requires that, in addition to analyzing how it affects us (which comes naturally), we must also look at how it affects others. 

There are likely many clients who would like other agents to contact them as it would provide them with more options to choose from. 

This works in our favour, so of course, we would support these people, but some consumers do not wish to be contacted by every agent in town, and we must respect that.

Finally, we as agents have a right to expect every ethical and legal opportunity to serve our marketplaces and, by doing so, earn a living. 

 

“Whether we choose to see it or not, these kinds of questionable decisions affect us personally, the reputation of our industry and society as a whole.”

 

What to do?

Well, we could certainly do as some do and contact expired listings anyway, knowing that the risk-reward scenario may be in our favour. 

But by doing so, we are disrespecting the rules and regulations, the rights of others who do not wish to be contacted, and the greater society by saying laws and ethics don’t apply to us. 

As we hear so often these days, “XYZ company is committed to [insert appropriate right here], but [insert excuse here].” In other words, lip service; the company respects everyone’s right to whatever, as long as it doesn’t affect them. 

Whether we choose to see it or not, these kinds of questionable decisions affect us personally, the reputation of our industry and society as a whole. 

 

“In a world of ever-increasing invasions of our privacy, there must be a middle ground between privacy and doing business ethically and legally.”

 

Are there other ways to legally and ethically contact expired listings? There certainly are. 

One method I have considered for some time, and RECA confirmed it would probably be seen favourably, is establishing a routine whereby we regularly drive a particular neighbourhood looking for signs coming up and coming down. 

Nobody can say for sure until it is legally tested, but it is highly likely to be seen as an acceptable way to gather information on potential expired listings. 

Coming full circle to my earlier comments about not fully being a fan of this aspect of privacy legislation, why not implement a checkbox on the listing document for sellers to determine if they wish other agents to be able to contact them after expiry?

In a world of ever-increasing invasions of our privacy, there must be a middle ground between privacy and doing business ethically and legally. 

Maybe you have some different ideas? What does your regulator allow? 

 

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