A Realtor’s® Guide to New Millennium Marketing

As marketing channels grow broader in their reach, there are a few rules to remember when advertising yourself and your listings, whether electronically or through traditional methods. Above all, comply with Article 12 of the Code of Ethics, which requires that you be truthful in your advertising and that you disclose your status as a real estate professional. Beyond this underlying requirement, here are answers to often-asked advertising questions.

Q:  When should I use the Realtor® logo or the term Realtor®?
While you are strongly encouraged to use the Realtor® logo or the term "Realtor®" in your advertisements, it is not required. You are required to state your professional status, such as principal broker, associate broker, appraiser, sales associate, property manager, real estate licensee, etc. If you do choose to use the logo, you must include the registered trademark symbol “®.”  

Q:  I have seen “Coming Soon” signs up for months. What is a reasonable use for a “Coming Soon” sign?
You should be particularly careful about using “Coming Soon” signs. While some agents use these riders legitimately, other agents use them as a way to pocket listings. If you want to use a “Coming Soon” sign, to comply with the Code of Ethics you must use it properly and make sure it discloses the professional status information cited above.

Your Multiple Listing Service has rules that determine how quickly you must enter the property into the MLS after signing a listing agreement. Bright MLS (formerly MRIS) sets that period at 48 hours.

Many agents, however, post a “Coming Soon” sign before listing the property in the MLS. This may be permissible under MLS rules if your client tells the listing company to withhold entering the listing and includes this directive in your listing agreement. As an agent, you may recommend that your client withhold the listing if he or she has a legitimate reason for keeping the property off the market. Repairs are an example of a legitimate reason. Keeping the property off the market to give you or your firm sole access to the property is NOT a legitimate reason.

As always, a decision whether to use a “Coming Soon” sign must be made based on the client’s informed determination of what best serves the client’s interests. Failure to act in the client’s best interests by marketing the property for the agent’s personal gain (i.e. listing exclusivity) can be a violation of the Realtor® Code of Ethics.

“The obligation to refrain from making false or misleading statements about competitors, competitors’ businesses, and competitors’ business practices includes the duty to publish a clarification about or to remove statements made by others on electronic media.”

ONLINE ADVERTISING
Social media has enabled Realtors® to reach broader audiences with their advertising messages. Many Realtors® have a Facebook page, use Twitter, post on LinkedIn or host a blog. This technology facilitates contact with a much larger group of people, so keep in mind these dos and don’ts.

Q:  I want to start using social media to advertise my business. Are there specific requirements?
If you choose to advertise on social media platforms, you are responsible for ensuring that your usage is consistent with the Code of Ethics; local, state and federal laws; and all applicable real estate license laws and regulations.

When advertising on social media, you should familiarize yourself with the media platform’s privacy policy. Remember that information posted on social media may be forwarded by other users for purposes other than originally intended. This is a frequent occurrence, so client information that is not public should not be posted.
Also, if you are making comments about your brokerage on social media, you must clearly disclose your relationship with the brokerage.

Finally, as with all advertisements, failing to obtain the written consent of the seller, landlord, optionor or licensor prior to advertising a specific identifiable property is prohibited. Advertisements must indicate your firm’s name, even if the advertisement does not include a listing. If you advertise through message postings on social media sites, at a minimum you must provide a link so that your firm’s name is “one click away.”

For a more detailed discussion about Realtor® social media practices, please see: http://realtormag.realtor.org/sales-and-marketing/feature/article/2013/02/best-practices-for-your-real-estate-web-site-home-page

Q:  Are there additional requirements for blogs, Facebook and other similar interactive websites?
While there is some case law indicating that a blogger is not liable for information posted by a third party on his or her blog, NAR has taken a different approach. Standard of Practice 15-3 states:

“The obligation to refrain from making false or misleading statements about competitors, competitors’ businesses, and competitors’ business practices includes the duty to publish a clarification about or to remove statements made by others on electronic media the Realtor® controls once the Realtor® knows the statement is false or misleading.” (Adopted 1/10)  

As a Realtor®, you therefore have a higher level of duty than a member of the public. If you operate a blog, you must delete false or misleading comments or publish clarifications about them as soon as you have determined they are false or misleading.

Q:  It has become standard practice for MLS listings to include photos of the property. How do you select which pictures to attach? Can you alter them? What are the consequences of posting pictures on your MLS listing?
First, consider the issues surrounding the choice of pictures. If the pictures of the house highlight some of the property’s problems, is it permissible to “clean them up?”  Any time you make a material change on a photo that alters the physical condition of the property, you may be violating Article 12 of the Code of Ethics. Article 12 requires that Realtors® present a true picture in their advertising and real estate communications. However, some situations present a clear violation, while some would get different results from different panels. An example of a clear violation would be to erase a visible crack in a home’s foundation, or fill in a hole in the roof. But what about removing the dandelions in the grass, or removing a cloud in the sky?  In these examples, reasonable people could disagree.

Before posting photos in your MLS and attaching them to your listing, consider that most MLSs address the use of pictures in their rules. You agree to abide by these rules every time you upload a picture. Here is a general summary of these rules:
    (1)    The Listing Agent represents that he or she has the right to upload the pictures to the MLS.
    (2)    The Listing Agent gives the MLS permission to use the photos.
    (3)    Photos and images are uploaded on a per-listing basis, and are not transferable to another listing.

Other articles, such as Article 2 (misrepresentation or concealment of pertinent facts about a property) and 10 (discrimination based on race, color, religion, sex, handicap, familial status, national origin and sexual orientation and gender identity) also impact how social media can be used by Realtors®. It is important to familiarize yourself with those articles too.

MEDIA MINEFIELD
Advertising presents multiple opportunities for Realtors® to get tripped up by rules, regulations and the Code of Ethics. While common sense may prevent some potential pitfalls, every Realtor® should learn which provisions apply before posting – either in the ground or online!