Slow market breeds inaccurate real estate ads
Do yousteam when you follow up on a newspaper advertisement for “cozycottage” and find a falling-down fixer? Can the term “waterfrontaccess” accurately describe a public boat launch three miles away?
Advertisementssometimes are too complimentary and do not accurately describe the property forwhich they were written. Some homeowners and creative real estate agents, likemany people in the sales game, dress up a product prettier than it actually isto lure the largest number of potential buyers — especially when the markethas slowed in many neighborhoods.
Does themedium in which the ad appears have the obligation to check these ads foraccuracy? In a capsule, you don’t shoot the messenger. Most of the time, whenan ad is out of line, so is its author.
Ordinarily,the medium would not have the obligation to check the accuracy of the ad. Themagazine or newspaper would be held to the ordinary standard of care. Thisbasically means that unless the publication knew, or should have known, aboutan inaccuracy, it has no real duty to investigate the factual statements madein the advertisement. Most of the time, it is up to the seller or real estatebroker to verify information.
Thepublication is not in the business of confirming classified advertisingcontent, unless the error is a blatant misrepresentation. However, if an adstated, for example, that a home was a waterfront property and in a totallyhomogeneous neighborhood and it was neither, the medium could be heldaccountable.
There’s nodoubt that it is extremely difficult to continually find ways to describehomes. Let’s face it — ordinary places are ordinary. Many agents dread thetask and some firms now have designated ad writers. Some get carried away, buthow many lovely adjectives really exist to camouflage an absolutely tinykitchen?
Ten yearsago, when national home sales last experienced a significant slowdown, agentsand ad writers were faced with the difficult task of merely getting buyers tolook at homes. Some ads were clearly in dreamland. But the downturn was quicklyforgotten when an extraordinary, decade-long run of home appreciation was thesparkplug of the economy, and potential buyers flowed into weekend open houses.If there was a complaint, it usually involved perennial “Looky Lous,”or window shoppers, who constantly tour but seemingly never make a competitiveoffer.
We may seemore creative writing than usual, as many agents have to sharpen theirmarketing skills after years of taking orders. The housing correction isexpected to last about two years in the markets that were overheated andsubject to speculation, especially Las Vegas, Phoenix, Miami, Washington, D.C.,and many markets in California. Economists have advised buyers to examinemarket fundamentals such as employment and population growth before making amove.
In acapsule, a media advertisement is nothing more than a solicitation to make an offer.If a consumer feels misled by the ad, the question becomes: “How have youbeen damaged?” Other than your disappointment, how has this been to yourdetriment other than losing some time and fuel expense?
Most majorreal estate advertisers — large realty firms — not only are given booklets toexplain newspaper policies and copy guidelines, but they are also reminded thatmisleading advertising usually reflects negatively on the advertiser’s businessor product. Typically, when the newspaper gets a complaint — even the basicsof misrepresenting the number of bedrooms or bathrooms — classified managerssend a note to the advertiser about the inquiry.
Althoughnewspaper advertising is extremely popular, some companies rely on other meansto secure borrowers, including the Internet and television. In 1984, thetelevision industry was deregulated, allowing commercial content programming.Previously, programming was limited to seven minutes of commercials for each 30minutes of programming.
InWashington state, Puget Sound residents are spoiled and often take for grantedthe number of properties with amenities in this region. The numerous bodies ofwater coupled with terraced hillsides offer area residents view opportunitiesnot available in most areas of the country.
But don’tget carried away if you are a seller attempting to write an ad. A”peekaboo Sound view” should be more than standing on a toilet andcranking your neck to get a glimpse of water through the neighbor’s trees inwinter.
TomKelly’s new book, “Cashing In on a Second Home in Mexico: How to Buy, Rentand Profit from Property South of the Border,” was written with MitchCreekmore, senior vice president of Houston-based Stewart International. Thebook is available in retail stores, on Amazon.com and on tomkelly.com. Tom canbe reached at news@tomkelly.com.
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Copyright 2006 Tom Kelly
