Humber/Ontario Real Estate Course 4 Exam Practice

In marketing, what basis should a brokerage advertising sales achievements clearly state?

1. Annual summary confirmation

2. Approval from the real estate board

3. Basis for the claim in the ad

4. Clients' statistical verification

5. Fiscal year-end financials

6. Metrics verified by state law

The correct answer is: Basis for the claim in the ad

In marketing, particularly when it comes to advertising sales achievements, it is essential for a brokerage to clearly state the basis for the claim in the advertisement. This ensures transparency and clarity, allowing potential clients to understand the context and validity of the sales results being presented. By specifying the basis for the claim, the brokerage reinforces its credibility and substantiates its marketing assertions with evidence or data that support its achievements. For instance, if a brokerage claims to be the top seller in a particular neighborhood or market segment, citing the specific metrics and time frames that support this ranking is necessary to prevent misconceptions or potential misleading information. This practice not only enhances the brokerage's reputation but also complies with marketing regulations intended to protect consumers from false advertising. While other factors, such as approval from real estate boards or fiscal year-end financials, can play roles in overall compliance and credibility, they do not directly communicate the reasoning or basis behind specific claims. Thus, the emphasis on stating the basis for claims is pivotal in maintaining trust and integrity in real estate marketing.