CEU Course for Massachusetts Real Estate Agents. With many agents advertising on social media it is important that they comply with the various federal and state regulations and the NAR Code of Ethics.

1. Real Estate Advertising
Compliance and the Law – MA
RE41R05
Bob Falter, PhD, GRI
Broker Associate
REALTOR®

3. CEU Outline

5. Sources of Guidance
REALTOR® Code of Ethics
License Law Regulations
Federal Laws and Agency Guidance (i.e., HUD)
MLSPIN Rules

6. 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)

8. Article 12
Materials Page #
8
SOP 12-5
Electronic identification
including tweets
SOP 12-8
Accurate websites
SOP 12-9
State licensing
SOP 12-10
Accurate URLs
SOP 12-11
Privacy Policy

9. 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®

17. Writing Group Exercise #1
Write an ad that you write for a Facebook post.

20. 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

21. 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.

22. Fair Housing and Advertising
 Steering
 Blockbusting
 Preference Implicit or Implied
 False Denial of Availability
 Representing or Enforcing Restrictive
Covenants
 Redlining

23. Methods of Advertising
 Buyers
 Sellers
 Agents

26. 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

28. 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

30. 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 homes
2014 Profile of Home Buyers and Sellers

32. 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

34. 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

36. 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

38. 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

40. 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

42. Group Writing Exercise #2
Write an ad for a Twitter post.
Maximum characters = 140!

44. WHAT IS ADVERTISING TODAY?

45. Agents
 91% of agents use social media to
some extent

46. Factors to Consider
 Market Reach
 Frequency
 Continuity

47. Newspapers
Selling
Branding

48. MLS
 Agent
- Reverse Prospecting
 Consumer
- MLS Alerts

49. 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

50. Group Writing Exercise #3
Write a ad that you would write in a Craigslist
post.

52. On-Line Advertising
• Social Media
• Location Services
• Classified Ad sites

53. Content on the Web spreads FAST, and
nothing is ever really gone
Boston Herald
October 27, 2009

54. 2014 NAR Technology Survey
91% 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

55. Source
s
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!

56. Potential Risk Areas with Social Media
Defamation (Libel)
Copyright Infringement
Antitrust Violations
Fair Housing Violations
Harassment
NAR Code of Ethics Violations (Think about
Article 1, 2, 12, and 15)

59. Flyers
 Product
 Services
 Personal

60. Direct Mail
 Mass Mailing
 Target Marketing

61. 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

62. Purpose of Advertisement
Sellers
Ads don’t sell houses…People do!

63. 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?

65. Writing Group Exercise #4
In your groups write an advertisement that you
could use in a print brochure, MLS, or dialog
for a video.

67. 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.

68. Blind Advertisements
 Print Ads
 Signs
 Websites 
 Social Media

69. 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

70. 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.

71. 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

72. 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.

73. 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.

74. 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.

75. Inducements
 Agents
 Consumers
 Third Party

76. Real Estate Ads
Would you change anything?

78. Bob Falter, PhD, GRI
Broker Associate
ERA Key Realty Services – Worcester
Blog
www.ShrewsburySells.com
Social Media
www.twitter.com/bobfalter
www.facebook.com/rgfalter
www.linkedin.com/in/bobfalter
Thank you for Attending