On this 275th episode of my Monday Morning Pep Talk, I will discuss a word that most advisors, brokers and agents in our industry think they understand - but don’t: Fiduciary. In real estate, we toss that word around like it’s just part of the job description. “I’m a fiduciary.” Great. But are you actually behaving like one? Or are you just facilitating a transaction?
Here’s the cold truth: the vast majority in our industry are acting like order takers. They open doors, they write offers, they negotiate some terms - but they’re not leading. They’re not advising. They’re not doing what a true fiduciary does: putting the client’s best interest ahead of their own at every turn, especially when it’s hard, inconvenient, or costs them a commission.
Before I jump into today’s call, I want to remind you of my professional purpose: to help you, the full-service, full-fee Advisor, optimize your productivity and become the best version of yourself. Why? Because “Happy Advisors Sell More Real Estate.” I do that by teaching you how to handle the challenges and opportunities you face every day. When you can effectively manage the situations that arise daily in your business, you’ll be more productive and live a life that reflects the best version of yourself. My ask is that you listen as if you’re in a one-on-one coaching session with me, either in my office or on a call.
In the world of financial advisors, being a fiduciary is a legal obligation. If you’re managing someone’s money, you’re held to the highest standard of care. You’re expected to give advice that’s in their best interest, not yours - not your firm’s, not your bottom line. And if you don’t? You get sued. You lose your license. You’re done.
Now let’s apply that to real estate.
Being a fiduciary means:
- Telling a client not to buy if the house is wrong for them - even if you’ve been showing them homes for six months.
- Challenging your client when their emotions cloud their judgment - because they hired you for your expertise, not your agreement.
- Creating a marketing and execution plan that will sell their home at the highest price on your client's timeframe.
You’re not just moving houses. You’re guiding people through one of the most emotionally charged, financially significant decisions of their lives. You see it every day. The transactions between buyers and sellers are getting tougher every year.
Let’s zoom in on the other side of the coin: what not being a fiduciary looks like.
If you want to see the opposite of fiduciary behavior, look no further than the traditional banking and finance world. I’m not talking about independent financial advisors who are legally bound to act in your best interest. I’m talking about those sitting inside major banks and brokerage houses - the ones whose “advice” is tied to selling the bank's product.
Let me paint the picture:
You walk into a bank. You sit down with someone who says they want to help you plan for your financial future. Sounds good, right? But here’s what they don’t tell you: they’re only allowed to offer products from their firm. Their paycheck? Tied to the number of accounts they open, the loans they originate, the investments they sell. That means if there’s a better product out there - one that fits your needs better, costs less, performs better - you’ll never hear about it. Why? Because it doesn’t serve them.
They’re not advisors. They’re salespeople with quotas. And they are protected by one magical phrase: "suitability. “As long as the investment or product is suitable - not necessarily the best, not even in your best interest - they can sell it to you.
Compare that to a fiduciary who’s legally required to do what’s best for you, not just what’s “good enough.”
Now let’s bring it back to real estate. Are you pushing a deal because you need it to close this month? Are you steering your client toward a property because it’s your listing and you’ll double-side it? Are you saying “yes” when you should be saying “not yet”?
That’s suitability thinking - and it has no place in a business built on trust; it is inconsistent with a relationship business model.
We don’t talk enough about this in our industry. The barrier to entry is low. The consequences for mediocre representation are even lower. But if we want to elevate this profession - and I do - our industry has to start acting more like true fiduciaries and less like salespeople chasing a check.
Here’s the test: If you got paid nothing for this deal, would you still give the same advice?
If the answer is no, you’re not operating as a fiduciary. You’re selling a product.
Here’s the kicker: clients can feel it. They know when you have commission breath.
They may not know the word fiduciary, and they probably can't define it - but they absolutely know when someone is looking out for them versus looking out for themselves. It’s intuitive. It’s primal. They feel it in your body language. They hear it in your tone. They pick up on the hesitation - or lack of it - when you recommend a property. They know when you're pushing, and they know when you're protecting.
This is why our industry has a problem with trust. Let’s be honest - real estate agents, as a profession, don’t rank highly in terms of public perception. In fact, we’re often lumped in with used car salespeople in terms of trustworthiness. That stings, but it’s not unearned.
Why? Because for decades, too many agents have operated under the banner of “helping” while actually doing the bare minimum to facilitate deals and collect commission checks. When the focus is on the transaction instead of the transformation, people know. They might not call it out, but they log it - and they remember.
It’s why even when you deliver results, some clients still keep you at arm’s length. It's why so many agents struggle with repeat and referral business. It's why trust has to be earned every. single. day.
Here’s the truth: If we want to rise above the noise, build real careers, and get off the treadmill of constantly chasing the next deal, we have to start showing up like fiduciaries, not facilitators.
The good news? When you operate from that place of true service - when you give hard advice, when you walk away from bad deals, when you protect your client even when it costs you - they notice and they tell people. People remark on a remarkable experience.
Because while most agents are trying to be liked, fiduciaries earn trust and trust is the only currency that compounds over time.
So, which one are you?
