FIX THE SALES PITCH

The first step to fixing a problem is admitting that the problem exists. RE is no different.

Part of the reason we are where we are today is that the industry allowed misleading practices to become normal.

Not necessarily because of bad intentions, but because the incentives were wrong, the language was loose, and the risks were not always explained clearly enough to buyers.

Here are a few things the industry can improve:

1. Fix the language.

Stop calling developer price increases “capital appreciation.”

A price increase simply means the next inventory is being offered at a higher price. That does not automatically mean an earlier buyer can resell at that price, especially after taxes, fees, and market liquidity are considered.

2. Use proper disclaimers.

Many agents used the rapid increase in prices over the past few years as a selling point.

That may be fair if presented as historical context. But it becomes misleading when buyers are made to feel that future price increases are almost certain.

At the very least, agents should be trained to say: “Past performance does not guarantee future results.”

3. Explain pre-turnover resale before buyers sign.

There may be deeds of assignment, developer approvals, waivers, administrative fees, taxes, and different rules depending on the developer. This should be explained upfront.

4. Check if buyers can realistically pay the balance.

There should be a reasonable assessment of whether that buyer can actually complete the purchase. Otherwise, the industry encourages a dangerous mindset: reserve now, worry later. This is often reinforced when buyers are told they can simply sell the unit before turnover. But pre-turnover resale is not guaranteed.

5. Apply stronger scrutiny.

In my opinion, regulatory bodies should examine real estate sales practices with the same level of scrutiny applied to financial markets. After all, buyers are often making major financial commitments based on projections, historical price increases, and representations about future resale potential. That deserves stronger oversight.

A healthier market is built by better disclosure, better training, and more honest language.