CEU-Real Estate Advertising Compliance and the Law - MA_6-17-15

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