In North Carolina, for example, real estate agents are protesting a 2008 law that required that they disclose in writing any compensation "of more than nominal value" they expect to receive from their client, whether the buyer, the seller, both, or any other parties to a transaction. The rule was adopted after reports that a Charlotte Realty firm took millions of dollars in payments from builders to steer hundreds of potential buyers to their properties, without disclosing the bonuses.

With the legal question far from settled, do agents have a moral obligation to disclose all of their compensation to buyers? Of course they do. And just how how likely is an agent to be swayed to push one property over another because of a certain incentive? Let's take a look.

It's a slippery slope to be sure: financial incentives of any sort to tend to sway behavior towards self interest. In the real estate arena, such incentives include trips, gift cards, even cars -- all provided based on one or more closed transactions. It's not uncommon for developers or well-to-do owners to sponsor wine tastings or catered lunches in the hopes of increasing their visibility as quickly as possible.

In the banking world, regulators ban gifts of over $100, precisely because of this reflex and its potential influence on decision-making. Not so in real estate.

The primary incentive comes in the form of commissions from the seller -- specifically, the "split" on the typical six percent fee, half of which usually goes to the buyer's broker. The higher the split, the greater the incentive to push that property (or, at the very least, to make sure it gets shown).

The way it works now, the buyer's agent is almost always paid by the seller, which makes for some interesting questions: Who does the agent actually work for? Yes, a buyer's broker represents the buyer, but it would be much cleaner if each buyer and seller were to pay for their own representation.

So, do incentives help keep a property top of mind? Absolutely. Similarly, no seller will take a chance and offer a buyer's broker just a tiny incentive--what wants to risk having no brokers support that property? In Manhattan, at least, more than 85 percent of all transactions include buyers' brokers. But I believe an agent can only push so far at the detriment of the relationship and the very transaction (s)he wants to close.

Many agents will tell you that they would lose most of their clients were they to show them anything other than the most suitable properties based on their needs. In most cases, the client guides the process of narrowing down the properties; their input is critical to making a decision where to place offers. At the very minimum, it's a partnership. The properties seen are those clients choose based on preliminary data provided to them (pictures, price, time on market, square footage, etc.). The properties that move to the next round are chosen based on the clients' best reactions based on their tastes and needs.

Finally: the moral obligation piece. Yes, agents should disclose fees to their clients, and educate them about how fees work. But without laws requiring disclosure, a buyer can only ask and hope that an agent is straight with them. While there are some agents who may not do the right thing, there will always be many others will. Like all careers that depend on commissions, real estate can attract those looking to make money any which way... But, as in all careers, there are always those for whom integrity and service come first.


- For more about Ana Maria, you may visit www.anaANDmarie.com.

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c)Make the most of every Sunday and some weekday evenings to host open houses.

See the Other Side of This Arguement: Your Broker Needs a Shave

· Developing and discussing an appropriate marketing strategy

· Organizing photo shoots, 360 virtual tours, and videos for the property

· Continuously and professionally advertising the property on public sites (newspapers, local listing services, etc.) and broker-to-broker databases, along with email blasts to agents and clients

· Gathering appropriate documentation and answers from the management company to understand every aspect of the building and its policies

· Consistently and promptly answering all questions about the property to brokers and buyers via email, work phone, cell phone (at all hours)

· Scheduling and hosting open houses and one-off showings

· Reviewing the offers and financial suitability of buyers

· Consulting with seller on all offers and negotiating them in the best interest of the seller, making sure to help the seller be as objective as possible throughout (read why studies have shown it's always better for a third party to negotiate on your behalf)

· Preparing deal sheets, document compilations and board applications for dissemination to all parties in a timely manner

· Overseeing the compilation and submission of the board package and all of its components, cross referencing all content

· Being the continuous point-person (sometimes therapist) between all interested parties

· Odds and ends such as coordinating move-in scheduling, forwarding addresses, special requests, etc.

· Attending and facilitating the closing

All of this for $10,500 or $36/hr on a pre-tax basis. The above is not intended to generate pity or a "poor agent; nice try" reaction. Rather, it's from a sense of pride and an attempt to provide a glimpse at the services a great agent provides in return for that commission.

So ... ask yourself, what kind of agent is willing to provide a significant discount to their fee considering the above? In answering this, think about what you do for a living and why you would or wouldn't reduce your salary or fee. Further, two additional points:

a) What does it say about the agent's own negotiating capabilities with potential buyers if they can't stand their ground with you?
b) What does it say about the value they place on their own skills and services, or their lack of existing business?
c) Which of the above duties or responsibilities are points of compromise for you?

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Walking down Fifth Avenue recently, I couldn't help but be struck by the number of empty storefronts, particularly at this time of year. So much for those green shoots. Talk of an economic double dip is rising, as typically happens at the tail end of every recession. What backs up the argument for a double dip? Let's have a quick run-through of the major reasons:

• The government stimulus is limited in reach. Many experts argue that double the fiscal punch would have been needed to do more than merely prevent a depression (which we have, indeed, averted).
• Unemployment continues to rise, as corporate downsizing continues and stimulus programs wind down.
• Consumers are (still) tapped out. Already, we are seeing projections of holiday sales decreasing versus last year. With homes no longer functioning as ATMs, and job prospects uncertain at best, cash is tight in most households.
• The stock market's bull run is losing steam. For the last few quarters, it has built in little downside to an upwards economic trajectory. Couple that with a weak dollar and ever-increasing gold prices and... it just doesn't smell right. Robert Shiller's recent statements underline my view that this is not just another recession.
• Housing prices are still in negative territory. The fact that the latest Case-Shiller index has been used as evidence of stabilization is like congratulating a gambler on losing just $500 dollars instead of $2,000.

• Government stimulus is just now starting to kick in
• Unemployment is a very lagging indicator
• The stock market is a great leading indicator, and
• Home sales are surging

The bottom line is that, human sentiment is a funny thing. If you think the world is going to end, you act like it, and your behavior has ripple effects in all that you do. Similarly, if you see the economy poised for a boom and expect your paycheck to follow suit, you will hire and spend more, thereby fueling the upward momentum.

In Manhattan, at least, sellers are confidently looking forward to a healthy Wall Street bonus season and believe that the worst is most definitely behind us. Buyers, on the other hand, remain wary of the future and still expect to pay below ask.

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