With the proliferation of social networking services, platforms such as Instagram and X (formerly Twitter) have become indispensable tools for real estate brokers to attract customers and publicize their services. Many real estate agencies are now focusing on SNS marketing due to the advantages of being able to visually convey the appeal of their properties and reach a wide range of potential customers at low cost.
At the same time, however, there has been a sharp increase in the risk of inflammatory postings and violations of laws and regulations specific to real estate. Not only can inappropriate postings damage a company's image, but in the worst case scenario, they can result in severe penalties such as business suspension or license revocation.
This article provides specific examples of NG posts that real estate brokers should avoid in their SNS operations and offers guidelines for safe use of SNS from a regulatory perspective. The contents of this report can be used as a reference for all those involved in the real estate industry, from sales representatives to management.
In recent years, the real estate industry has accelerated the use of SNS marketing to increase the diffusion of property information and reach potential customers, particularly young adults. In particular, Instagram, with its excellent visual appeal, and X (formerly Twitter), with its immediacy, are attracting attention as effective tools for conveying the appeal of properties.
The main advantages for real estate companies to utilize SNS are as follows.
| Benefits | Overview |
|---|---|
| Increased visibility | Builds a friendly image by disseminating not only property information but also the daily lives and behind-the-scenes activities of employees |
| Builds trust | Real-time question-and-answer service helps to shorten the distance between you and your clients and increase their trust in you. |
| Low cost | Major SNSs can be operated free of charge, enabling effective information transmission even with a limited budget. |
| Visual appeal | The quality of the property can be visually conveyed through photos and videos. |
| Spreading Power | Information can be spread widely through the share function. |
On the other hand, the disadvantages include the time and effort required for operation and the risk of inflammation if posted inappropriately. It is especially important to note that SNS postings are also subject to legal restrictions as real estate advertisements.
As with print media and websites, real estate advertising regulations apply to SNS postings by real estate brokers. Specifically, the following laws and guidelines are relevant.
Building Lots and Buildings Transaction Business Law (Building Lots and Buildings Transaction Business Law)
Act against Unjustifiable Premiums and Misleading Representations (Act against Unjustifiable Premiums and Misleading Representations)
Fair Competition Code Concerning Real Estate Representations
According to the opinion of the Metropolitan Area Real Estate Fair Trade Council, property advertisements on SNS must also comply with existing codes, and the posting of previously sold properties may be considered a form of entrapment. Unsubstantiated exaggeration is also prohibited. Although it is possible to provide the required information in the summary or comments section, guidelines specific to SNS have not yet been established.
The following penalties will be imposed for violations of the real estate advertising regulations.
| Type of violation | Penalties |
|---|---|
| Violation of the Act against Unjustifiable Premiums and Misleading Representations | Order by the Commissioner of the Consumer Affairs Agency to take measures and pay a surcharge (3% of sales) |
| Violation of the Building Lots and Buildings Transaction Business Law | Up to 6 months imprisonment or a fine of up to 1,000,000 yen, or both |
| Violation of the Fair Competition Code | Warning to eliminate violations, penalty (up to 5 million yen), suspension or expulsion |
Considering the severity of the penalties, it is essential for real estate brokers to establish appropriate SNS guidelines internally and build a system for checking before posting.
The following are examples of what real estate brokers should avoid posting on social networking sites, broken down by category.
Unauthorized disclosure of client information
Postings that infringe on the privacy of tenants.
Such posts are likely to lead to legal problems, and in particular, leaks of information about celebrities are likely to trigger social networking flames, so care should be taken.
Posts that constitute bait and switch advertisements
Postings that lack the required information
Submissions that include exaggeration or misrepresentation
These postings violate the Building Lots and Buildings Business Law and Real Estate Advertising Regulations, and carry the risk of administrative action and fines.
Postings containing discriminatory or inappropriate expressions
Postings that disparage competitors or property owners
Political or religious statements
These posts, even if they are personal views, may be perceived as the official views of the company and cause unnecessary controversy.
Posts with unstable update frequency
Postings that are exclusively one-sided advertisements
Posts with inappropriate apologies or responses
Although these do not constitute direct regulatory violations, they can significantly damage a company's credibility and lead to a long-term decline in its ability to attract customers.
Let's analyze actual cases of social networking flame wars in the real estate industry and learn lessons from them.
In early 2016, a female employee of a real estate brokerage company posted on her private Twitter account that she had guided a celebrity to a new home after giving her personal name. The situation caused a firestorm as an invasion of privacy.
A real estate company in Ishikawa Prefecture posted sexually explicit advertisements that included phrases such as "The room is old and your first experience will be delayed" and "Beautiful female college students are welcome! (lol)" and other sexually explicit advertisements were posted on SNS, causing controversy.
There was a case in which a real estate company's apology posted after a firestorm was suspected of being a "canned or copied and pasted" apology, and was also flamed again because it contained excusive expressions such as "We have been thoroughly training our employees..." etc.
The following are guidelines for real estate brokers to use SNS safely and effectively.
Use the following pre-posting checklist to prevent problematic postings.
| Checklist | Check Details |
|---|---|
| Compliance with Laws and Regulations | Are there any violations of the Building Lots and Buildings Business Law, Act against Unjustifiable Premiums and Misleading Representations, or Fair Competition Code? |
| Required Information | □ Is the required information such as transaction type, license number, location, etc. listed? |
| Privacy | □ Does it contain any customer information or personally identifiable information? |
| Appropriateness of expression | □ Are there any exaggerated, discriminatory, or inappropriate expressions? |
| Fact checking | □ Are there any errors or falsehoods in the contents of the listing? |
| Contract status | □ If the property has already been sold, is this clearly indicated? |
| Risk of spread | □ Have you considered the risk of spreading the information? |
| Multiple checks | Has a third party other than the person in charge checked the information? |
In particular, when posting property-related information, be sure to thoroughly manage the contract status to avoid bait advertisements, and be careful to ensure that there are no errors in the terms and conditions of the transaction or the price tag.
To be successful in social networking, it is important to balance the content and frequency of your posts.
Provide useful information
Balance of property introductions
Transmission of corporate culture
It is important to find a pace that you can sustain, neither too much nor too little. Also, respond to comments and messages as quickly as possible, and keep two-way communication in mind.
In the unlikely event of a social networking flame war, the following steps should be taken.
Initial response (within 24 hours of discovery)
Apology (within 1-2 days)
Follow-up (1 week to 1 month)
It is important to be careful not to make excuses or shift responsibility in the apology, and to clearly indicate "what went wrong" and "how to improve. In addition, be cautious about responding to comments individually, as it may add fuel to the fire.
While social networking is a powerful marketing tool for real estate brokers, it also poses significant risks if not managed properly. To summarize the information explained in this article:
Understanding and complying with laws and regulations
NG Postings to Avoid
Practical points for success
SNS can be a powerful tool for real estate brokers to attract customers if used appropriately due to its ability to spread information. On the other hand, inappropriate use can be a double-edged sword that can instantly damage a company's image. Please refer to the guidelines outlined in this article to minimize risk while implementing effective SNS marketing.
We hope that your company's SNS operations will be successful and lead to quality customer encounters.
A: The following display items are also required for real estate advertising on SNS .
A: According to the Fair Trade Council, you can post an already-sold property if you clearly state "Sold. However, the indication should be made in a prominent position, such as in the summary section or title. In addition, many companies have a basic policy of deleting the postings to prevent misidentification. Ideally, a system should be in place that allows for automatic contract indication and deletion in conjunction with the property information in the system.
A: Even if an employee 's personal account is used, any postings related to real estate transactions may be considered as the company's opinion. In particular, never post customer information or privacy-related content. It is important for companies to establish social networking guidelines for employees and to inform them of the risks through regular training.
A: The initial response to a flaming incident is as follows
Be careful not to shift responsibility or make excuses for the apology, and release it once the facts are confirmed.
A: When outsourcing SNS operation, the following points should be noted
It is also important to include clauses on confidentiality and emergency response in contracts with contractors to clarify where the risks lie.
The latest real estate advertising regulations and guidelines are constantly being updated, so it is advisable to check regularly. If you are unsure about a decision regarding social networking postings, you can minimize the risk by consulting with your company's legal staff, your real estate association, or the Fair Trade Council.
We hope that this article will help you improve your SNS operations and lead to effective customer attraction and safe information dissemination. To improve the transparency and reliability of real estate transactions, be sure to use SNS appropriately.