When niche marketing collides with fair housing

WASHINGTON -- Oct. 19, 2006 -- Target marketing is a popular technique, but it can lead you astray if you’re not careful. Here are some useful tips on how to market to a niche without breaking the law.

When planning your marketing strategy, be sure not to base your marketing decisions on prospective clients’ membership, or non-membership, in any of the classes protected by the federal Fair Housing Act or by your state or local fair housing laws, according to the just-released third edition of "Real Estate Brokerage Essentials: Managing Business and Legal Issues," published by the National Association of Realtors (NAR).

Some examples: Don’t focus only on Hispanic buyers, to the exclusion of African Americans, Asians or Caucasians. Don’t market your services only to Christians, to the exclusion of people of other faiths. Don’t place your listings only in newsletters designed to reach seniors, to the exclusion of families with children.

The rule not to market on the basis of membership in a protected class applies even if the protected class is one the real estate professional belongs to. In general, you'll usually be safe if you niche market in accordance with the rule for composing ads for properties: Focus on the property’s characteristics, not those of the prospective buyer or tenant.

Exceptions to this rule include niche marketing to first-time homebuyers and clients who are relocating. A niche marketing plan that is based on any of the following property types is perfectly lawful and can be quite effective:

Luxury communities
Fixer-uppers
Condominiums
Single-family homes
Resort housing
Properties in foreclosure
Homes on the historic register

To find out more or to purchase "Real Estate Brokerage Essentials: Managing Business and Legal Issues," go to http://www.realtor.org/prodser.nsf/OpenProd?OpenForm&IN=126-358. The cost for members is $49.95; non-members will pay $69.95.

Source: Realtor Magazine Online, with excerpts from Real Estate Brokerage Essentials

© 2006 FLORIDA ASSOCIATION OF REALTORS

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