I have been toying with the idea to give a free 32" samsung flat panel tv to anyone who uses my services as their buyers agent. Basically they purchase price of the home must be above a certain amount and with at least 3% commission must be paid by the seller. Is this illegal to do? Can I adverstise this? Some say yes others say no I am trying to find a more concrete answer with supporting documentation.
I found this in the code of ethics:
Standard of Practice 12-3
The offering of premiums, prizes, merchandise discounts or other
inducements to list, sell, purchase, or lease is not, in itself, unethical
even if receipt of the benefit is contingent on listing, selling,
purchasing, or leasing through the REALTOR® making the offer.
However, REALTORS® must exercise care and candor in any such
advertising or other public or private representations so that any
party interested in receiving or otherwise benefiting from the
REALTOR®'s offer will have clear, thorough, advance understanding
of all the terms and conditions of the offer. The offering of any
inducements to do business is subject to the limitations and
restrictions of state law and the ethical obligations established by any
applicable Standard of Practice. (Amended 1/95)
So as I read this I am fully within my right to advertise my free tv purchase program. Is this correct? Im in Florida by the way.
Heather Joubran, GRI, NRBA, CLHMS, CDPE
RE/MAX Central Realty
www.HeatherTheRealtor.com (407) 810-6304
Specializing in First Time Home Buyers, Short Sales, Bank Owned Real Estate, REO & Foreclosure Properties
Servicing Real Estate Needs in: Lake Mary, Longwood, Winter Springs, Sanford, Altamonte Springs, Oviedo, Orlando, Downtown Orlando, Thornton Park, College Park, Winter Park, Maitland, Windermere, UCF, Lake Nona, Baldwin Park, Apopka, Ocoee & Winter Garden
I thought of doing something simuliar but for referrals. I've been told that is wrong. But as far as using it for buyers, it seems like it is okay...but of course it's better to be cautious! Check with anyone you can think of.
Good luck, I hope it works out for you!
I don't see how this is unethical. If agents giving half their commissions back is standard practice, a t.v. is well within guidelines. I would argue that it's what the anti trust laws are all about. You are in control of your own pricing strategy. I hope this works out well for you.
I have developed several other ways to use less money which keeps clients happily referring for years.
All the best with your new marketing approach,
Dan Dowling