National no-call list: Law alters Realtors' marketing strategies

by Ashleigh Behlmann

SBJ Contributing Writer

sbj@sbj.net

Since the Federal Trade Commission's national no-call list took effect on Oct. 1, consumers have gained a reprieve from the solicitations of telemarketers. According to the FTC, the national no-call list was enacted in order to "offer consumers a choice regarding telemarketing calls."

However, the national no-call list stirs concern among some industries, including real estate.

The practice of calling homeowners with expired listings or for-sale-by-owner homes was a common practice among Realtors; in many instances the no-call list halts these calls. The purpose of these calls among real estate agents was to acquire listings.

"It's not exactly cold calling," said Carol Jones Realtors General Manager Jim Bolin. "We're talking about a for-sale-by-owner where someone has a sign in their yard or ad in the paper. These are people who really want to sell their homes and are making an attempt to do it. We can offer them a service, obviously for a fee, but it's different from telemarketing because you're not selling them a product. Eighty-six percent of people selling their homes wind up working with a broker."

While Realtors, like political organizations, charities and telephone surveyors, are exempt from the Missouri No-Call List, the national list makes no such exemption.

"Even though we had a no-call list in Missouri, Realtors were excepted because they were calling to offer a service and attempt to set up an appointment versus selling a product," said Bolin.

Because the national no-call list does not provide such an exemption, lobbyists for the National Association of Realtors and the American Telemarketing Association are working to have this changed. According to ATA Executive Director Tim Searcy, practices employed by Realtors do still qualify as telemarketing since they include commercial language. However, he believes that Realtors and other professions should receive an exemption to the rule for several reasons.

"First, they do not attempt to sell anything over the phone. They set up an appointment and the content of the sale occurs in the home. Second Realtors act on a local basis, not a national basis, so meaning they are within one or two area codes. I doubt that many people on the no- call list specify that they don't want to be contacted by local businesses. And third, the likelihood that you are going to receive redundant real estate calls is low," said Searcy. " In many times, it is a courtesy call; it gives a lot of information in addition to just selling."

To avoid potential legal pitfalls, Springfield Realtors are employing other marketing strategies instead of unsolicited calling.

"Some Realtors did produce their new business through telemarketing, especially by calling for-sale-by-owner (properties), so they are going to have to re-evaluate how they do business going into the future. But it's a little early to say what exactly the effects are going to be," said Springfield Area Board of Realtors Multilist President Danna Hartley. Hartley also is an agent with Murney Associates.

Methods such as mailers, door hangers or door-to-door solicitation are common alternatives to telemarketing.

Some local Realtors show little concern over the impact of the new legislation; they say that becausee they use the practice sparingly, discontinuing it altogether will have little impact on their business.

"Our business is so much about relationship building and referrals. It's hard to build a relationship over the phone," said Benchmark Realty broker Helen Brumit.

Benchmark owner Judy Chapman added: "We do a lot of door-to-door canvassing, mail outs; I very rarely call anyone. There are other ways Realtors can solicit the market."

Jeff Parker, sales manager at Coldwell Banker Vanguard, said the impact will vary by agent.

"It depends on the associate," Parker said. "Most of our associates have been in business for a long time and are full-time. So they are able to call people who are in their sphere of influence. (And) anyone with whom we have had a prior business relationship, we are free to contact them."

While local offices do not feel that their business is threatened by the new policy, they are cautious about adhering to its guidelines.

"We've erred on the side of caution," said Parker. "When the first list went into effect, we stopped any type of calls that could possibly be in violation. When it was on hold, we still didn't make any of those calls. We don't want to get in a situation where someone feels they are being contacted in violation of the list."

Bolin said that's an industry-wide concern.

"The National Association of Realtors is doing everything they can to make sure that their members are in compliance. No one wants to be in violation of this," said Bolin.

Shortly before the no-call list went into effect, Carol Jones Realtors began using a software program that allows agents to access the no-call list before contacting the owner of a home.

"We use the FTC list for the area codes that we have in our system, not only to protect the client who is saying, Don't call me,' but also so that we can call the ones who don't mind," said Bolin.

While it may be too soon to quantify the negative impact the national no-call list will have on the real estate industry as a whole, local companies view it as an opportunity to improve their business practices.

"It forces the good agents to maybe mail direct or go knock on that door. It will make the strong companies stronger," said Bolin.

Added Hartley, "It changes what media they are using. It's just a new approach to business."