Lets face it, when it comes to finding new clients, real estate agents are some of the most resourceful and successful people at marketing and prospecting. I recently heard a great quote by a friend, "we're the only profession that wakes up every morning and we're unemployed until we find the next client."
Some tactics though can land a real estate agent in hot water and potentially get them in serious legal troubles.
1. The prize
Some agents use giveaways or gifts such as iPads or iPods or other gadets. However, make sure you're not doing so in violation of your particular states statutes. For example, Arizona law. A.R.S 13-3301(4) defines gambling, in part, as "the act of risking or giving something of value for the opportunity to obtain a benefit from a game or contect of chance or skill. Giving business to an agent in exchange for entry into a drawing is likely considered "giving something of value for the opportunity to obtain a benefit. If you'd like to offer gift cards to a particular store at an open house then you should offer them to everyone. Remember, Article 12 of the Standard of Practice 12-1 of the code of ethics states: REALTORS® may use the term "free" and similar terms in their advertising and in other representations provide that all terms governing availability of the offered product or service are clearly disclosed at the same time.
2. The flier claim game
We've all seen it and probably done it right! The flier sent out that has the MLS info with the last five homes sold and the ones that are pending and their addresses. But these aren't the ones that the agent sold himself. It's a great marketing tactic, but illegal. If you weren't involved in the transaction you can't give the impression in your advertising that you sold these homes. Article 12, Standard of Practice 12-7 states: "Only REALTORS® who participated in the transaction as the listing broker or cooperating broker may claim to have "sold" the property.
3. The sign game
Many REALTORS® are posting For Sale and For Lease signs in their own yard. There's one problem with this, the agent's house isn't on the market. This is just a way to get prospects though and illegal. Clever, sure. Unethical, absolutely. Article 12 of the code of ethics strictly prohibits false advertising of any kind. Agent's think a home won't sell unless it has a for sale sign, but nothing can be further from the truth.
Keep these points in mind as food for thought next time you try to market yourself and get creative.
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