As a real estate professional, the language you use can have a significant impact on the quality of offers your sellers might receive. Carelessly worded property listings can also open the door to potential legal risks and lawsuits.
To help your sellers attract the best offers while also protecting your own business, it’s crucial to avoid certain messaging. That means both in face-to-face dealings and in your marketing. From avoiding discriminatory language to keeping listings succinct and factual, every word counts.
Avoid saying these things in your listings so you can minimize the risks and get the best possible offers for your clients without facing legal action…
Steer Clear of Discriminatory or Non-Inclusive Language
The language you use MUST comply with the Fair Housing Act and not be discriminatory. This means not using any references to race, religion, familial status (presence or absence of children), or other protected characteristics. Failure to comply with the Fair Housing Act will not only see you in legal hot water, but by not using inclusive language, you are severely limiting the possible offers your seller may receive. So, instead, use inclusive and welcoming language that will attract a range of potential buyers.
Many seemingly innocuous statements can actually misrepresent the property or neighborhood, and other statements can imply you’re “steering” certain types of buyers to the property (and avoiding other types). Avoid saying in your marketing or in person things like:
- “Safe”: when referring to the neighborhood or larger area
- “Quiet”: this is a subjective term that buyers could rely on, and their assumption of what “quiet” means may not be the case
- “Family” or “families”: like family neighborhood or good for families
Further, inclusivity means removing certain phrases from your ads and vocabulary, like:
- “His and hers” when referring to closets, baths, etc. Use “dual closets” or “dual baths,” instead.
- “Bachelor pad,” “family home,” etc.
A smart way to re-focus your marketing and communications is to talk only about the home and not about the potential buyers for the home.
Avoid Sharing Personal Details
Always resist the temptation to share any personal information about the current owner or tenants. For example, names, jobs, or reasons for leaving that may be personal, i.e., especially something like a divorce, which may indicate a need to sell quickly. Disclosing a divorce could be a breach of fiduciary responsibility to your sellers.
Instead, keep your marketing purely on the facts and features of the property. This will help to both maintain your seller’s privacy and avoid buyers being influenced in their evaluation of the property. It will prevent bias that may limit the offers you receive for the property, and it will also help to avoid having unhappy sellers who may potentially sue you.
Don’t Overemphasize the Positives or Understate the Negatives
When crafting your property descriptions, make sure you strike a balance between highlighting the home’s best assets and presenting accurate unbiased information about the home. Any exaggeration of the positives could be viewed as misleading to potential buyers. Stick to the facts and let buyers form their own opinions. Presenting the home objectively gives prospects the information they need to make an informed decision about the property. It can also help you, as a real estate licensee, to avoid a lawsuit.
Avoid using superlatives when talking about:
- Size: of the rooms, home, or property. Words like “large” are subjective but can be relied on by buyers.
- “Recent” referring to remodels or repairs or replacements. Some buyers may assume “recent” refers to a different timeframe than you had in mind, and will rely on your “recent” statement.
Don’t mislead or misrepresent what is truly there. Avoid exaggerations or estimations of the age of the roof, appliances, etc.
Don’t Declare the Asking Price As Firm (or Otherwise Reduce Your Pool of Prospective Buyers)
When discussing the property price, never declare it as firm or non-negotiable. This may deter prospects who may not make an offer because they can’t pay the full asking price. Instead, think about your clients and achieve the best outcomes for them. That means using language that indicates an openness to negotiations, so you aren’t limiting interest and offers on the property. As a real estate licensee, you must present any and all offers. Failure to do so could result in you being sued by your client for breach of duty.
Requiring pre-approvals or selling “as is” can also greatly reduce your pool of prospective buyers. Better to disclose issues with the property, rather than imply the property needs a lot of work. Your conclusion of “needs work” or “needs updating” may not be what buyers may conclude, and they may be happy with the property just the way it is.
Also avoid implying there are permitting problems by saying in the listing, “buyer to verify permits.” This is something you can address at the disclosure stage.
Avoid Messaging That Suggests the Seller HAS to Sell
Never communicate to ANYONE that your seller needs to sell or is under any pressure to complete a transaction in a certain timeframe. Avoid phrases such as “motivated seller” or “must sell” as this type of language sounds like the seller is desperate for a sale. As a result, you may receive low-ball offers for the property from prospective buyers who want to take advantage of the seller’s circumstances.
Keep Listings Concise and Informative — But Accurate
Listings that are too long or lack important information may miss the mark with prospects. This means potential buyers may overlook the listing altogether or not be completely sure of all the property has to offer. Ensure your property listings are clear and concise, conveying the facts about the property. This is the way to generate the highest-quality offers for your sellers. It’s also a way you can avoid unhappy buyers who feel duped by property descriptions that have omitted important information that would have affected their decision to purchase.
Double-check all of your information before completing your listing on the MLS. A common error with selling condos or other properties with common areas is to inadvertently grossly over-state the acreage of the property.
Protect Your Real Estate Brokerage With CRES Insurance
CRES is a Real Estate Errors & Omissions Insurance specialist with more than 25 years of experience. As part of one of the largest insurance brokers in the world, we have access to more E&O options than most other real estate insurance providers.
With a CRES E&O + ClaimPrevent® plan, you’ll also have access to expert real estate attorneys. They can give you advice whenever you need it to help you avoid lawsuits, not just defend them. So, if you have a question about where you stand legally with your communications, you can contact your CRES team for qualified and professional advice.
Contact the CRES team at 800-880-2747 for a confidential discussion today. We look forward to tailoring an insurance policy specifically for you.
