Introduction
As Africa’s population grows in leaps and bounds, the quest for property ownership has skyrocketed, driving many African nations to expansion and economic development. The more urbanized a city becomes, the higher the demand for property ownership. This is the same reality for government policies—the easier the legal process for property acquisition, the higher the demand. While this looks interesting, with the expansion and exponential growth, ethical concerns have become more pronounced than ever. The property market is now plagued with integrity issues and several other lapses that lead to distrust and eventual financial losses.
As this becomes a prominent issue, it therefore deems appropriate for real estate coaches to rise to the occasion to facilitate processes of professionalism, where developers and other professionals within the real estate scope uphold due industry standards that reflect trust, integrity, transparency, and accountability. With the help of relevant case studies and insights, this article explores how real estate coaches can play a significant role in ensuring that ethical principles are practiced in real-time by professionals within Africa’s property market, particularly Nigeria.
Simply put, the major ethical elements in real estate comprise honesty, transparency, fairness, and confidentiality. Each of these values may seem interrelated but is unique in its distinct offering, ensuring that right from the initial communication stage of initiating a transaction, to the stage of execution, all processes are conducted with strong ethics. Unfortunately, in many African countries, unethical practices have taken centre stage in the real estate sector. These crimes appear in the form of land scams, fake documentation, license exploitation, and exorbitant hidden fees. This has made ethical coaching and guidance even more critical in ensuring the market remains credible and attractive to investors. For instance, in 2016, only 16% of property sellers in South Africa trusted their agents, indicating the issue of trust and integrity within the industry (Property Wheel).
It is therefore a case of necessity that real estate coaches must live up to expected roles in the true tenets of real estate ethics. These experienced professionals are expected to mentor and train agents, brokers, and other stakeholders in the industry, guiding them in making the right decisions in tandem with ethical standpoints. Some of their roles in fostering ethical standards include:
1. Ethical Training and Awareness
Real estate coaches should prioritize organizing training programs where ethical issues can be raised and encouraged. These issues would cover legal compliance, industry standards, and the adoption of core professional values like fairness and transparency within and outside the industry. In Nigeria, real estate organizations always ensure that adequate training is carried out to enable the awareness and adoption of professional ethics.
2. Mentorship and Professional Development
Real estate coaches are responsible for building and shaping the professionals of the real estate sector. Apart from organizing training sessions to aid capacity building, they are also expected to guide these professionals at every point of their journey, particularly in making appropriate decisions and navigating ethical dilemmas that might arise in the course of practice. It is therefore important that real estate firms position coaches to refine their agents and help them build a standard reputation for themselves.
3. Accountability and Code of Conduct Implementation
Just like every other sector, the real estate industry is guided by codes of conduct. These structures might be ignorantly breached or misunderstood by many. However, with the help of coaches, the framework for accountability and reliability will be enforced. In South Africa, the Property Practitioners Act sets clear ethical guidelines for real estate practitioners. While this is already a standard, coaches are expected to help provide clear interpretations of the codes to ensure appropriate compliance and implementation.
4. Promoting Client-Centric Ethical Behavior
Prioritizing the needs of clients has been a foremost practice in the real estate industry worldwide. To make this a continuous practice, real estate coaches must orient new entrants to ensure satisfaction, honest communication, fair pricing, and overall customer service. This approach helps coaches build long-term relationships based on trust rather than short-term gains.
In some African countries like Nigeria, real estate industry reforms are fast in play, ensuring that disturbing issues like property fraud and land disputes that have previously plagued the real estate market are now minimized due to the rise of professional coaching programs. This has led to noticeable improvements in ethical behavior among agents. An example in this regard is the Nigerian Institution of Estate Surveyors and Valuers (NIESV), whose training incorporates ethical validation in its accreditation exercises.
Another exemplary African country is Kenya, whose property market is currently experiencing a boom marked by strong ethical considerations. The country has had its share of cases involving land fraud, false advertising, and legal disputes over property ownership. However, in response to defeating that trend, several coaching organizations have emerged to guide professionals on responsible business conduct. One of these organizations is the Kenya Property Developers Association (KPDA), which partnered with real estate coaches to improve tendencies of ethical awareness and professional standards.
Challenges in Implementing Ethical Practices
Undoubtedly, real estate coaches put in effort to enforce change towards adopting strong ethical practices. Unfortunately, they face several challenges, including:
1. While big real estate firms can afford professional training schemes, professionals in small-sized companies decline in growth due to financial limitations. In Nigeria, this affects 50% of managers in decision-making (repository.Icu.edu.ng).
2. Even when coaches introduce new structures and processes, some real estate professionals are stuck in the resistance-to-change trap, where they are reluctant to unlearn and relearn new principles, especially when they are used to operating unethically.
3. While some African countries have stable and strict regulatory environments, others struggle with weak regulatory frameworks, allowing law offenders to get away with ethical breaches.
Strategies for Enhancing Ethical Practices Through Coaching
To strengthen the adoption of ethical practices in the real estate sector, the following strategies should be adopted:
1. Coaching programs should be expanded and made accessible to all professionals within the industry.
2. The government and professional bodies of individual countries should collaborate to ensure a centralized system that reflects the standard of real estate processes.
3. Ethical behaviors should be incentivized—awarding or rewarding good behavior will encourage more good behavior.
4. Authorities should implement a system for proper scrutiny to ensure that real estate codes are followed effectively.
Conclusion
As the real estate sector continues to grow in demand, so does the need for real estate coaches. Their roles are crucial in shaping practices in Africa’s property market. Through training, mentorship, and accountability structures, they instill a culture of integrity in the industry. While challenges persist, continued efforts in ethical coaching and regulatory enforcement can help transform Africa’s real estate sector into a more transparent and trustworthy industry, ultimately benefiting both investors and consumers.
Tope Mark Odigie is the CEO of REB360, a Real Estate company focused on people empowerment and wealth creation and a passion of building inspired communities. She is also the founder of WIRE Africa (Women in Real Estate, Africa) an NGO with a mission to facilitate the participation and financial empowerment of African Women through real estate.
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