{"id":2750,"date":"2017-03-29T19:31:07","date_gmt":"2017-03-29T19:31:07","guid":{"rendered":"https:\/\/thehoneybeehomes.com\/home\/?p=2750"},"modified":"2024-09-13T12:02:50","modified_gmt":"2024-09-13T12:02:50","slug":"why-integrity-is-crucial-in-real-estate","status":"publish","type":"post","link":"https:\/\/thehoneybeehomes.com\/home\/why-integrity-is-crucial-in-real-estate\/","title":{"rendered":"Why Integrity is Crucial in Real Estate"},"content":{"rendered":"

\"Integrity<\/a>Integrity.<\/strong><\/em><\/p>\n

It’s not a word you hear a lot nowadays, and when you do, it’s usually used to sell something. However, integrity is crucial in real estate. Whether you are buying or selling, renting or managing, appraising or inspecting, acting with integrity makes the whole system run.<\/p>\n

Most people will agree with this sentiment in theory. But in practice, when there is an opportunity to fudge something ‘just a little bit,’ the majority will take it. \u00a0We see this in a thousand small ways. The landlord who ‘forgets’ to mention that the shower will only stay hot for ten minutes. The renter who breaks an appliance, but stays silent, so they can get their full security deposit back. The home seller who doesn’t fix the electrical system, but installs three-prong outlets to make it ‘look right.’ The home buyer who adds a few months to their work history in order to secure a better rate on their mortgage. The list goes on and on.<\/p>\n

Why We Do This, and How Far We Go<\/h3>\n

The why<\/em> is relatively simple. \u00a0Frankly, there is often a short-term benefit in acting without integrity. \u00a0Perhaps you make a bit more money, get a better deal, sell your home\u00a0faster, or keep someone ‘important’ in your good graces. \u00a0Whatever the case, there is almost some incentive to cheating.<\/p>\n

\"Integrity<\/a>How far we go<\/em> is more fascinating. \u00a0Many assume that people decide how much to cheat\u00a0based on a logical calculation. \u00a0A balance of risk vs. reward, with maybe some moral dilemmas thrown in there.<\/p>\n

However, According to research by Dan Ariely, author of\u00a0The Honest Truth About Dishonesty: How We Lie to Everyone\u2013Especially Ourselves<\/a>, <\/em>it goes deeper than that.<\/p>\n

According to Ariely, the vast majority\u00a0like to see themselves as good people. \u00a0As a result, people tend to bend their morals ONLY\u00a0to the degree that they can rationalize or ignore it later. \u00a0This allows people to people to maintain a positive self-image while still getting some of the benefits of cheating.<\/p>\n

Here’s an example. \u00a0John\u00a0would never\u00a0$200 in cash from their property manager’s safe, even if he found it wide open. \u00a0‘No stealing’ is black and white in his mind, and he wouldn’t be able to still think of himself as a good person if he just grabbed\u00a0the cash.<\/p>\n

However, John is\u00a0fine with staying silent about a $200 window he broke during a party.\u00a0After all, the property manager was kind of a jerk last month, and the apartment complex probably makes plenty of money. \u00a0He chooses to rationalize his decision away, and convince himself that this ‘isn’t the same thing.’<\/p>\n

Integrity is crucial in real estate… don’t let the small things trip you up.<\/p>\n

\"Integrity<\/a>The Point of No Return<\/h3>\n

Many people view these decisions as isolated events. \u00a0Choosing to add\u00a0an unnecessary fee to\u00a0a tenant or exaggerating how much money you made to your mortgage broker feels like a one-time incident.<\/p>\n

However, according to Ariely, there is a compound effect with\u00a0integrity. \u00a0If we stay true to our principles on Tuesday, we’re more likely to make an honest choice on Thursday. \u00a0Doing the right thing feels good, and each high-minded decision strengthens our willpower for the next<\/em> moment that will test our morals.<\/p>\n

The opposite is also true. \u00a0If you\u00a0make a decision to act without integrity, your brain will\u00a0work hard to rationalize it. \u00a0Remember, we all want to see ourselves as good people. \u00a0Your mind will give you SOME\u00a0justification for your action (“They’re rich, they won’t miss the money,” etc.). \u00a0If you do this once, you are much more likely to do it again. \u00a0You have both received the ‘reward’ and rationalized away the mental strain,\u00a0so it becomes easier for your brain to make a similar choice next time.<\/p>\n

Unfortunately, this snowballs.<\/p>\n

At some point, after repeated instances of cheating, your mind will quit even attempting<\/em> to rationalize it. \u00a0Your thinking\u00a0will shift,\u00a0and decide “well, I’ve already gone this far, I might as well get as much as I can. \u00a0I’ll start fresh next week.” \u00a0Only it doesn’t usually work.<\/p>\n

You can see this in your daily life. \u00a0The\u00a0public servant who starts with the best of intentions, and winds up a corrupt politician. \u00a0The intense dieter who decides to cheat ‘just this once,’ and finishes a pizza by themselves four days later. \u00a0Beware the slippery slope.<\/p>\n

\"Integrity<\/a>The Vicious Circle<\/strong><\/h3>\n

Unfortunately, this causes a vicious circle of distrust. \u00a0Landlords raise rents and security deposits to make up for increased maintenance costs. \u00a0Tenants get upset, and break their lease without paying what they owe. \u00a0Then, rents go up more, but\u00a0landlords don’t see any extra cash.<\/p>\n

Home buyers don’t trust that sellers are honest, so they insist on several inspections and a home warranty. \u00a0This delays the process, puts more ‘hands in the pot,’ and drives up the purchase price, so the buyers pay more and the sellers get less.<\/p>\n

Mortgage companies raise their fees to make up for borrowers that defaulted on previous loans. \u00a0Borrowers then have to spend more money upfront to buy their houses, which leaves less cash on hand to deal with emergencies. \u00a0If a crisis hits, and they have less of a financial safety net, they are more likely to default on their mortgage.<\/p>\n

The list goes on and on.<\/p>\n

\"Integrity<\/a>Stopping the Cycle<\/h3>\n

Every person involved in real estate, in any way, can be part of the solution. \u00a0This is true if you’re an mortgage broker, a renter in their first apartment, or a landlord with 300 units.<\/p>\n

Integrity is crucial in real estate. \u00a0By acting with integrity, you help others have faith in the system. \u00a0You help reduce costs all around, and increase benefits for everyone involved. \u00a0You sleep better at night, and treat others the way they should be treated. \u00a0You gain a reputation for being an upstanding person, and through your example, help others act with integrity.<\/p>\n

You can make a positive difference in many small ways. \u00a0Hang a little sign in your office to remind you to do the right thing, every time. \u00a0If a co-worker is doing something in the moral ‘grey area,’ encourage them to reconsider. \u00a0Take a moment to put yourself in the other person’s shoes, and think about how your choices affect others. \u00a0Remember that small, short term gains are temporary, while your integrity stays\u00a0with you forever.<\/p>\n

Stay strong, stay true, and encourage others to do the same. \u00a0Real estate will be much better for it!<\/p>\n","protected":false},"excerpt":{"rendered":"

Integrity. It’s not a word you hear a lot nowadays, and when you do, it’s usually used to sell something. However, integrity is crucial in real estate. Whether you are buying or selling, renting or managing, appraising or inspecting, acting with integrity makes the whole system run. Most people will agree with this sentiment in Read More<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[17,18,16],"tags":[8,158,9,10],"class_list":["post-2750","post","type-post","status-publish","format-standard","hentry","category-grand-rapids-mi-homes-for-sale","category-grand-rapids-mi-houses-for-rent","category-grand-rapids-mi-real-estate","tag-grand-rapids","tag-integrity","tag-kalamazoo","tag-michigan"],"yoast_head":"\nWhy Integrity is Crucial in Real Estate | Honeybee Homes, LLC | We Buy and Sell Grand Rapids Real Estate<\/title>\n<meta name=\"description\" content=\"Integrity is crucial in real estate, and small choices matter. 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