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Real Estate Break Up Ad Draws Ethics Complaint in South Carolina

Published by Joseph Ferrara (2) February 19th, 2009 in Marketing tips. Comments

real-estate-ad

Steve deGuzman is the owner of the Rehava Real Estate Store which opened last summer in North Charleston, South Carolina.  Rehava has a Redfin-ish business model—  real estate agents are employees paid a $30,000 salary; they do not work on commission.  Rehava offers clients a 50% rebate of  the commission the company earns.

Rehava came up with the “Break Up with Your Agent” ad campaign with Hook USA, a Charleston-based marketing firm, based on a poll that asked people what would prevent them from doing business with Rehava.  The overwhelming answer was that people choose a Realtor based on personal relationships, such as choosing a family member or friend.

Rehava ads appeared on 12 billboards and on the stall doors of dozens of public restrooms, along with this marketing message from the website:

rehava-ad

Is your current agent giving you half of their commission when you buy a home? Has the relationship become too personal to ask for half of their commission? Is your current agent willing to forgo commission and sell your home for a flat fee, regardless of the sale price? Do you feel trapped in a real estate relationship? Is it time to move on? Maybe so, especially if ending the relationship can benefit you financially. Take this simple quiz to find out if breaking up is right for you. (link)

Clever marketing or a violation of the NAR Code of Ethics?

Someone voted the latter and filed an official grievance against deGuzman with the Charleston Trident Association of Realtors.   Steve has not removed the page.

What say you?  Did Steve cross the line?

h/t Jame Kimmons Real Estate Blog (about.com)

Further reading:

Rehava ad sparks ethics complaint [Charleston Regional Business Journal]

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  • jack
    I've seen a lot of frustrated agents when I've been in meetings trying to show a product we sell them to increase business for them but more importantly, creating a brand name that they trust. I think that's where a lot of the pro's are having some issues. Since virtually each of them is competing for face recognition, they tend to blur out to the average consumer of their business who is the community. We've seen some improvement with how they are received by residents over the years. I would like to offer a look at it if you want to do something low cost but with meaning to the community served. http://stellarpath.com/ It's true I hope you have interest, but regardless of that, it's very worthwhile to appeal to the emotions of your community. Do that with whatever choice you go with in marketing. Tie it in with feeling people will trust.
    Jack
  • I doubt this ad campaign will produce business from the public or fines from the association. We see the same types of "blame the Realtor" marketing from low fee/rebate models up here in Washington. These types of brokerages come and go often, when he goes out of business there will be another to take his place.

    There is room for many different business models in real estate, but this type of marketing won't get it done in my opinion.
  • Receptionist wages, lol... You get what you pay for! Isn't that wage below the poverty line? Are they going to take the bus to show properties?
  • Much to do about nothing. Has any of these brokerage formats survived more than a few years.
  • joe
    I, personally, don't have a problem with the campaign. Sure it's strident, but in the end, the public will choose whom they want to do business with.
    I am with Ken. $30K. A lot of less stressful pay more than that. It might take a court to sort out the line between the generalized nature of this ad campaign vs. a solicitation directed at an individual agent and client.
    The bottom line is that the NAR is the agent of the status quo. I wouldn't be surprised if the DOJ got involved if the local association members push the issue.
  • I think it is against NAR for a Realtor to induce a prospect to cancel their contract with an agent and come to them.

    I wonder how many agents refuse to coop with these agents?
  • The question is: Who is the prospect? Does it have to be a specific person?
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  • I'm interested to see how this one pans out, too. Normally, you think of solicitation on an individual basis.
  • It'll be interesting to see how this works out. Local Associations of Realtors move slowly and have very minor penalties. Worse that could happen is they get booted out of the Realtor "club" and won't be able to use the trademarked name anymore. They'll be real estate licensees or practitioners or just plain old real estate agents.

    Why anyone would want the job of real estate agent or Realtor for only $30,000 a year is beyond me. Maybe it's a part time gig with a lot of administrative support.

    Tacky campaign but catchy.
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