Researchers question the benefits of disclosure

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Researchers question the benefits of disclosure

July 21, 2010 - New research may shed light on the conflict between someone who is moving out of their home and the person they hire to sell their property.

The Journal of Consumer Research published a report that may flip the concept of disclosure - when someone admits to having a conflict of interest - on its head, reported ScienceDaily. Researchers Daylian Cain, George Loewenstein, and Don Moore pointed out the traditional assumption that people prefer to know when they're being given bad advice. They likened it to when a real estate agent might intentionally manipulate the price of a home to make more money for themselves.

The problem, the researchers noted, is that most people don't ignore bad advice even when they know it is biased or corrupt. And most people giving advice might think it's ethically more responsible to further exaggerate their advice when they know that their conflict of interest has been disclosed. The research may suggest that transparency could actually make a situation worse rather than better.

Someone who is moving out of their home should be sure to research a trusted real estate agent and be honest with their selling needs and expectations.

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