Acting ethically through the sale and in every message after it gives sellers a reason to hire you again
A 2017 study in the Journal of Retailing and Consumer Services found that how ethical property sellers judged their real estate agent to be influenced whether they intended to use that agent again. My reading is that sellers form that judgment across the whole relationship, so the honest calls you make during a sale and the messages you send after it both feed your repeat business.
Key points
- In a 2017 Journal of Retailing and Consumer Services study of property sellers who were clients of a Scandinavian real estate agent, Le and Supphellen found that how ethical sellers judged the agent to be influenced their intention to use that agent's services again.
- The same study found that clients' co-production motivation increased the effect of perceived ethicality on those repurchase intentions.
- My reading for agents is that a seller's view of your ethics forms during the sale and is tested by every message you send after it, so the same standard has to hold in both.
How ethical sellers judged their agent shaped whether they planned to hire them again
In Determinants of Repurchase Intentions of Real Estate Agent Services, Nhat Quang Le and Magne Supphellen set out to explain what makes clients of a professional service decide to use it again, an area they note has had little research. They focused on real estate agents, built a model of the drivers of repurchase intentions, and tested it with property sellers who were clients of a Scandinavian real estate agent.
Their central finding is about ethics. The perceived ethicality of the agent, meaning how ethical sellers judged the agent to be, influenced their intention to use the agent's services again. For a real estate agent, if you want your clients to engage you for repeat transactions, you should care about their perception of your honesty and integrity.
They also found that clients' co-production motivation increased the effect of perceived ethicality. Co-production refers to the part of a service the client helps produce, so I read this as sellers who want a hand in the work of selling their home. For those sellers, their judgment of the agent's ethics carried even more weight.
Sellers form their view of your ethics during the sale and keep testing it for years
The study measured how sellers judged their agent's ethics, not when that judgment formed, so what follows is my own reading of why the finding matters across the whole relationship.
A seller's decision to hire you again usually comes years after closing, when they're ready to move. By then the details of the deal have faded, and what they carry forward is a sense of whether you dealt with them straight. Most of that sense is built during the transaction, in moments like how you arrived at a list price or whether you raised an inspection issue before a buyer found it. My explanation for the co-production result is that sellers who take part in the work are present for more of those moments, so they have more evidence to judge you on.
After closing, your messages become the evidence. A note that gives the seller something useful and states things honestly keeps their earlier judgment intact. A message that overstates their home's value to stir up a listing, or a request for a referral dressed up as a check-in, gives them a reason to revise it at exactly the point when they're deciding who to call.
A focus group report from Baylor University's Keller Center suggests honesty matters when people first choose an agent too. Wakefield, Pullig and colleagues found that recent buyers and sellers start with word-of-mouth referrals from friends and family, and then judge an agent's reputation on five dimensions they call CHEEK: comfort, honesty, establishment, experience and knowledge. The two studies asked different questions of different people, so I'd only go as far as calling the two findings consistent.
There are limits to keep in mind. Le and Supphellen studied the sellers of one Scandinavian agent, and they measured what sellers intended to do, which can differ from what they do at their next move. The study didn't include buyers, and applying it to North American agents is my own reading.
Make your reasoning visible during the transaction
Agents I've spoken to have said sellers vary widely in how closely they want to follow their own sale. Given the co-production result, that's worth finding out early.
Ask at the listing appointment how involved the seller wants to be. Some want a say in each decision and others only want to hear when something needs their answer. Note which they prefer, since it shapes how you keep in touch after closing as well.
Explain how you reached each recommendation. When you suggest a list price or a counter-offer, walk the seller through the factors behind it, including the ones that point the other way. A seller who has seen your reasoning has something concrete to judge your ethics on.
Disclose your relationships when you make a referral. If you have a connection to a lender or inspector you recommend, say so at the time. A seller who finds out from someone else after closing forms their judgment without you there to explain.
Bring bad news early. A weak showing report or a problem from the inspection is easier to take when it comes from you first, and an involved seller will notice when it didn't.
Hold the same standard in every message after closing
After a sale, most of your ethical choices come down to what you send a past client and why.
Send a message only when it gives the seller something. A relevant market update for their neighbourhood or a reminder they'd want is worth sending. In my view, a message whose only purpose is to keep your name in front of them draws down the trust you built during the sale.
Keep your numbers honest. If a past client asks what their home is worth, give them the same careful estimate you'd have given at listing, even when a higher number might prompt a sale.
Say plainly when you're asking for something. A referral request or a review request can be perfectly reasonable. Make it as a clear request so the seller never feels they were steered into it.
Match the involvement they asked for. The seller who wanted a say in every decision may welcome your thinking on the market, and the one who wanted only the outcome may prefer to hear from you less often.
Keeping that up for years means remembering what each seller wanted and what you told them. Worthington keeps a record of every contact, with notes on durable facts and interaction history, and keeps you in touch with past clients year over year. He knows when to follow up and when to say nothing at all, and he drafts each message in your own voice for you to review and send. For more on how trust turns into referrals, this piece on relationship marketing covers the ground, and this guide to past clients looks at staying in touch after the sale.
When a past client is ready to move again, the study suggests their view of your ethics is part of what they'll weigh, and every pricing call and every message between now and then is part of the record they'll draw on.
Common questions
Does acting ethically really bring sellers back?
Le and Supphellen found that sellers' perception of their agent's ethics influenced their intention to use that agent again. They measured intentions, so the study doesn't show how many sellers actually returned. My view is that it's still a good reason to make your ethics visible, since the seller's perception is what the study measured.
What does ethical follow-up with past clients look like?
In my view it means sending only messages that give the client something, and being as honest about their home's value after closing as you were at listing. The study didn't test follow-up directly, so this is my own application of its finding to the years after a sale.
What is co-production motivation for a home seller?
Co-production refers to the part of a service the client helps produce, and co-production motivation is how much a client wants to take part. For a seller, I read it as wanting to be involved in decisions such as pricing and offers. The study found it increased the effect of perceived ethicality on repurchase intentions.
Did this study look at North American real estate?
No. Le and Supphellen tested their model on property sellers who were clients of a Scandinavian real estate agent. Applying the finding to agents in Canada or the US is my own reading, so weigh it against what you know about your own sellers.
Worthington draws on research like this to shape a nurturing strategy for each of your clients. Join the waitlist