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FCC Delays Effective Date of Fax Consent Rule
by Rick Staff
Legal Update
03.08 describes new Federal Communication Commission
(FCC) rules which were to require written signed consent to send
advertisements (including data sheets to brokers or consumers)
beginning August 25, 2003. At the request of numerous associations,
including NAR, the requirement that the sender of a facsimile
advertisement first obtain the recipient's express written permission
will now take effect on January 1, 2005 unless the rules are further
modified prior to that time. Until then, at least, associations and
brokers may fax advertisements (data sheets and other advertisements)
to persons with whom the association or broker has an "established
business relationship."
Definition of Established Business Relationship
Starting August 25, the definition of established business
relationship means:
A prior or existing relationship formed by a voluntary two-way
communication between a person or entity and a residential
subscriber with or without an exchange of consideration, on the
basis of the subscriber's purchase or transaction with the entity
within the 18 months immediately preceding the date of the telephone
call or on the basis of the subscriber's inquiry or application
regarding products or services offered by the entity within the
three months immediately preceding the date of the call, which
relationship has not been previously terminated by either party.
The definition permits brokers or associations to fax
advertisements for 18 months to persons involved in a two-way business
relationships and for three months to persons who have made a request
for information but have no other business relationship with the
sender.
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FCC Fax Rules: What Do We Do Now?
by Debi Conrad
The Federal Communications Commission (FCC) has extended to January
1, 2005, the effective date of its new rules requiring written consent
before sending unsolicited advertising faxes. An unsolicited
advertisement is any material advertising the commercial availability
or quality of any property, goods or services that is transmitted
without a person's prior express invitation or permission.
Over the next 16 months, REALTORŪ associations and brokers do not
have to obtain signed written consents before they may send
unsolicited fax advertisements to individuals and businesses with whom
they have established business relationships, as originally was the
case. However, they still must obtain prior express permission from
fax recipients with whom they do not have established business
relationships. Express permission arguably can be verbal, although we
cannot be certain without an official FCC interpretation.
Under the FCC's new definition of an "established business
relationship," which still goes into effect on August 25, 2003, there
must be a prior or existing relationship formed by a voluntary two-way
communication between the entity sending the faxed ad (transmitting
entity) and the individual or business receiving the fax (fax
recipient). This relationship must be based on the fax recipient's
purchase or transaction with the transmitting entity within the last
18 months, or on the fax recipient's inquiry or application regarding
products or services offered by the transmitting entity within the
last three months.
The 18-month time period runs from the date of the last payment or
financial transaction with the transmitting entity even if the
transmitting entity does not currently provide service to the fax
recipient. A fax recipient's "prior or existing relationship"
continues for 18 months (three months in the case of inquiries and
applications) or until the fax recipient asks the transmitting company
to stop faxing ads.
An inquiry is not restricted to situations where a purchase or
transaction is completed, but the nature of any inquiry must create a
reasonable expectation on the part of the fax recipient that the
particular company might fax a prompt follow-up. An inquiry regarding
a business's hours or location would not be enough to establish the
necessary relationship.
Affiliates fall within the established business relationship
exemption only if the consumer would reasonably expect them to be
included given the nature and type of goods or services offered and
the identity of the affiliate. The FCC has indicated that the
established business relationship exemption does not permit companies
to make calls based on referrals from existing customers and clients,
as the person referred presumably does not have the required business
relationship with the company that received the referral.
This recent FCC action does not affect the FCC telemarketing rules
or the October 1, 2003 effective date for the national "do not call"
registry.
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The Best of Times, the Worst of Times - And How to Succeed in Both
by Mike Selvaggio, CRS, CCIM
It's been said that everything comes full circle. Throughout our
years, we experience the inevitable ups and downs of our lives,
relationships and careers. Whether you subscribe to the "full circle"
philosophy or not, our business of real estate does follow a pattern
of strength and weakness very much dependent upon the greater economic
situation.
Two major factors play into the strength of residential real
estate: interest rates and unemployment. Interest rates really are the
universal code for real estate as they have a direct impact on
encouraging - or discouraging - buyers and sellers. Unemployment
levels, which are ultimately tied to consumer confidence, have a more
indirect relationship, but are still an essential consideration for
homeowners. Although unemployment today is higher, record-low interest
rates have boosted the housing market beyond what anyone expected.
This brings us to the million-dollar question everyone's pondering:
when will this record-breaking real estate market fall? It's hard to
say because so many outside forces affect housing - but it will come
down at some point. That's why it's imperative for REALTORSŪ to
understand how to work successfully in both strong and slow markets,
the challenges of each and varying client expectations. I will also
share practical tips I've tested during my nearly 30 years in real
estate and as a Senior Instructor for the Council of Residential
Specialists.
On the Up-and-Up
In a robust real estate market, the frenetic pace can be both
energizing and exhausting. Homes that move off the market in only a
few days leave sellers looking for temporary housing, and buyers with
less equity because they're awaiting the sale of their current home.
In the case of buyers who have yet to sell their existing home,
I've found a solution in holdover loans or commonly known as bridge
loans. The basic principle is that homeowners receive an equity
advance. For example, let's say a home is worth $250,000 and has a
$100,000 mortgage remaining. After paying off the loan, closing costs
and miscellaneous fees, the homeowner has a $140,000 profit. Many
lenders will give the buyer an advance on a portion of that money,
approximately 80 percent, giving them the opportunity to move forward
with their new home without waiting for a confirmed buyer on their
existing home. The lender typically charges a 1 percent fee and also
interest on advanced funds until the current home is sold and settled.
Holdover loans are best suited for homeowners with strong equity, and
ultimately it's much more cost- and time-efficient than moving between
temporary homes.
When real estate is hot, consumers realize competition between
REALTORSŪ increases. Naturally, they use this to their advantage and
typically drive harder bargains for real estate services. Any real
estate professional can reduce their commission; but, the good ones
defend their fee because they stand behind their point of difference -
and offer something others don't. I recently received a phone call
from a prospective client who immediately asked my commission. I
replied saying, "you can find cheaper, but you can't find better." It
was important for him to realize that my commitment goes beyond a
monetary transaction. My team has since listed and sold his property,
received a referral from him for neighbor's home which we listed and
sold, and received another buyer referral.
Clients are our first priority, but each area of the business still
needs attention. Part of achieving this balance is to keep current on
trends and issues. Earn designations such as the Certified Residential
Specialist, enroll in real estate courses, and read magazines and
books. Also, continue marketing efforts, such as personalized
brochures, because your name should be top-of-mind for consumers when
sales prospecting begins again.
When Sales Slump
When homes are moving slowly in a particular community, it may not
be because of high interest rates or unemployment. Sometimes it's a
local issue. A few months ago, I listed homes in a community where the
local school district had a poor reputation. Naturally, this
perception began affecting the value of surrounding homes. I decided
to take an active role, and met with the principal to get the facts
and determine how I could help improve the situation. Interestingly,
the principal told me the school was in fact a very strong
institution, and it was a matter of negative public perception.
Thereafter, I proactively shared data and information about the
school's strengths with potential buyers and also offered face-to-face
meetings with the principal. By giving them the facts, I helped to
repair the school's reputation in the community and ultimately create
a more desirable neighborhood.
Customer care is absolutely critical when times are tough.
Customers need closer, more frequent contact and require more
creativity from their REALTORŪ. This can be found in the form of
incentives - an attractive and necessary tool. Two years ago, I worked
with a builder who gave a bass boat complete with a motor and trailer
to help entice people to move into his development, which included a
fishing pond. He's now selling six to 10 homes a month!
Maintaining high morale is typically a challenge in stressful
times. To continue growing as a leader and manager, there are a
plethora of books and courses to explore. I recently read Whale Done!:
The Power of Positive Relationships by Kenneth Blanchard, which
offered practical management tips and techniques on positively
reinforcing employees' actions. I strongly recommend it for your
personal life and career.
Smarter and Faster - It's the Consumer Way
Consumers today buy faster, spend more and expect the best. Our
clients are increasingly knowledgeable but demand more as well. As
part of my customer service promise, I set expectations early and
often to keep the lines of communication open. In fact, I just
completed a pledge of service that reviews the level of personal
attention given to each client.
REALTORSŪ are dream weavers. We help people reach their goals of
owning a home. What an amazing role! Maybe what goes around does come
around - because this responsibility affords us the opportunity for
satisfaction and success, despite the ups and downs.
Mike Selvaggio, CRS, CCIM, has been in the real estate business
since 1975. He is a licensed broker and REALTORŪ in Delaware,
Pennsylvania and Maryland. He has served as President of the
Delaware Association of REALTORSŪ and has authored many association
courses. Selvaggio teaches the two-day CRS 202 Course, "Effective
Buyer Sales Strategies," to those pursuing the Certified Residential
Specialist (CRS) Designation.
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