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Real Estate Advertising Compliance and the Law – MARE41R05 Bob Falter, PhD, GRI
Broker Associate
REALTOR®
CEU Outline
Sources of Guidance
REALTOR® Code of Ethics
License Law Regulations
Federal Laws and Agency Guidance (i.e., HUD)
MLSPIN Rules
Code of Ethics Article 12
REALTORS shall be honest and truthful in their real estate communications and shall present a true picture in their advertising, marketing, and other representations. REALTORS shall ensure that their status as real estate professionals is readily apparent in their advertising, marketing, and other representations….(Amended 1/08)
Article 12
Materials Page #8
SOP 12-5Electronic identification
including tweetsSOP 12-8
Accurate websitesSOP 12-9
State licensingSOP 12-10
Accurate URLsSOP 12-11
Privacy Policy
Real Estate Advertising Compliance and the Law
Code of Ethics- Common issues:
(See Article 12)
Offering of inducements to list, sell, purchase
Advertising other company listings
“Sold signs”
Keep your website current
Canvassing/General mailings (Disclaimer)
2011 © Massachusetts Association of REALTORS®
Writing Group Exercise #1
Write an ad that you write for a Facebook post.
Protected Classes
Federal Protected Classes
Race
Color
Religion
Sex or gender
Disability or handicap
Familial status
National origin
MA Added Classes
Sexual orientation
Age
Children
Ancestry
Marital status
Veteran history
Public Assistance
Discriminatory Advertising
No one can make, print or publish discriminatory ads including those who are exempt Ads that contain words, phrases,
symbols or visuals that indicate a discriminatory preference or limitation.
Ads that selectively use media, human models, logos and locations to indicate an illegal preference or limitation
Refusal to publish ads because of protected class.
Fair Housing and Advertising
Steering Blockbusting Preference Implicit or Implied False Denial of Availability Representing or Enforcing Restrictive
Covenants Redlining
Methods of Advertising
Buyers
Sellers
Agents
Characteristics of Home Buyers - MA- First Time Buyers – 39%
- Purchased multigenerational home – 11%
- 1st time buyer – 31 years old
- Repeat buyer – 49 years old
- Median household income (2013) - $107,400
- Married – 63%
- Recent home buyers – 21%2014 Profile of Home Buyers and Sellers
Characteristics of Home Purchased - MA
- New Homes - 8%
- Typical Purchase: Three bedrooms, two baths, 1,700 sq., built in 1973
- Detached single family – 72%
- Senior related housing – 14%
- Heating & Cooling costs – 93%
- Commuting costs – 73%2014 Profile of Home Buyers and Sellers
Home Search Process - MA
- Properties – 49%
- Information – 14%
- Internet – 94%; Mobile Device – 53%
- Real Estate agent good information source – 97%
- Searched 16 weeks
- Viewed 10 homes2014 Profile of Home Buyers and Sellers
Home Buying & Real Estate Professional - MA
- Bought through RE agent – 91%
- Found agent through referral – 44%
- Used same agent used before – 12%
- Interviewed only one agent – 66%
- Would use agent again and refer- 88%
2014 Profile of Home Buyers and Sellers
Financing the Home Purchase - MA
- Financed home purchase – 91%
- First time buyers – 97%; Repeat buyers – 87%
- Made sacrifices – 51%
- Mortgage process difficult – 30%
- Home good financial investment – 84%
- Down payment saving difficult – 19%
- Student loans – 58%
- Credit card debt – 37%
- Car loans – 56%
2014 Profile of Home Buyers and Sellers
Home Sellers and Their Selling Experience - MA- Lived in home for 10 years- Used a real estate agent – 92%
- Sold for 98% of list price
- Reduced asking price at least once - 49%
- Had to delay selling because value was lower than mortgage – 13%
- Offered incentives (home warranty or closing costs) – 14%
2014 Profile of Home Buyers and Sellers
Home Selling & Real Estate Professional - MA- Found agent through referral – 45%
- Used same agent used before – 26%
- Only contacted one agent - 69%
- Listed or advertised in MLS website – 92%
- 85% reported that they would definitely (65%) or probably (18%) use the agent again.
2014 Profile of Home Buyers and Sellers
For-Sale-by Owner (FSBO) Sellers - MA- Did not use agent – 7%
- Knew buyer before purchase – 43%
- FSBO was contacted by buyer they did not know - 33%
- Did not want to pay a fee or commission – 33%
2014 Profile of Home Buyers and Sellers
Group Writing Exercise #2
Write an ad for a Twitter post.
Maximum characters = 140!
WHAT IS ADVERTISING TODAY?
Agents 91% of agents use social media to some
extent
Factors to Consider
Market Reach
Frequency
Continuity
Newspapers
Selling
Branding
MLS
Agent
- Reverse Prospecting Consumer
- MLS Alerts
Websites 97% of buyers search the Web
National Realtor.com Zillow Trulia
Local Boston.com T&G.com
Company Can they find you?
Personal Can they find you?
Syndication Sites
Group Writing Exercise #3
Write a ad that you would write in a Craigslist post.
On-Line Advertising
• Social Media
• Location Services
• Classified Ad sites
Content on the Web spreads FAST, and nothing is ever really gone
Boston Herald
October 27, 2009
2014 NAR Technology Survey91% of REALTORS are using Social Media:
Approximately:
78% on REALTOR.com
73% on Zillow & Trulia
66% on Broker Site
57% on Agent Site
41% on Facebook
41% in Craigslist
Sources
Source: Compete.com – April 2010
*Facebook has had more monthly visitors than MSN for an entire year.
* Last month, Facebook got more US Traffic than Google!
Potential Risk Areas with Social MediaDefamation (Libel)
Copyright Infringement
Antitrust Violations
Fair Housing Violations
Harassment
NAR Code of Ethics Violations (Think about Article 1, 2, 12, and 15)
Flyers
Product
Services
Personal
Direct Mail
Mass Mailing
Target Marketing
Information Sources Used in Home Search
Real Estate Agents: 89% Yard Signs: 51% Mobile of tablet website or application: 45% Open House: 45% Mobile or tablet search engine: 42% Print newspaper advertising: 23%
NAR Field Guide to Quick Real Estate Statistics – July 2014
Purpose of Advertisement
Sellers
Ads don’t sell houses…People do!
Purpose of Advertisement
Target Marketing
Who are they?
What do they need?
What do they want?
What do they care about?
WHAT IS IN IT FOR ME?
Writing Group Exercise #4
In your groups write an advertisement that you could use in a print brochure, MLS, or dialog
for a video.
Blind Advertisements 254 CMR 3.00 9 (a) Broker Identification. No
broker may advertise real property to purchase, sell, rent, mortgage or exchange through classified advertisement or otherwise unless he/she affirmatively discloses that he/she is a real estate broker. No broker shall insert advertisements in any advertising publication or other means where only a post office box number, telephone, facsimile, electronic mail number or street address appears. All advertisements shall include the name of the real estate broker.
Blind Advertisements
Print Ads
Signs
Websites Social Media
Fair Housing Basics
Describe the house, not the type of person you feel should live in the house
ALWAYS avoid discriminatory advertising and illegal steering
Rentals
Landlords can set standards for renters
However, they must apply them to everyone equally
Examples include: income range, credit checks, landlord references, work references, criminal background check (CORI), and Housing Court cases, etc.
Rentals: Limited Exceptions
Rentals & Children
State law provides limited exemptions for owners of certain types of residential properties. These exemptions do not apply to Real Estate Agents
Rentals: Limited Exceptions
Rentals & Children - #1
Dwellings containing 3 apartments or less, one of which is occupied by an elderly or infirm person for whom the presence of children would constitute a hardship. An “elderly person” means a person 62 years old or over, and in “infirm person” means a person who is disabled or suffering from a chronic illness.
Rentals: Limited Exceptions
Rentals & Children - #2
The temporary leasing (1 yr. or less) of a single family dwelling, a single apartment, or a single unit of a condominium, by the owner of such dwelling who ordinarily occupies the dwelling as his or her principal place of residence.
Rentals: Limited Exceptions
Rentals & Children - #3
The leasing of a single dwelling unit in a two family dwelling, the other occupancy unit of which is occupied by the owner as his/her residence.
Inducements
Agents
Consumers
Third Party
Real Estate Ads
Would you change anything?
Bob Falter, PhD, GRIBroker Associate ERA Key Realty Services – Worcester
Blogwww.ShrewsburySells.comSocial Mediawww.twitter.com/bobfalterwww.facebook.com/rgfalterwww.linkedin.com/in/bobfalter
Thank you for Attending