In an Atmosphere of Lawsuits and Mistrust, It's Vital We Proactively Decode This Sensitive Topic with Grace
April Is Fair Housing Month. Have you had "The Talk"?
It’s April 2024, and you likely are well aware of the various lawsuits and pockets of rising consumer mistrust (it is by no means everyone) of real estate agents and brokers making the headline rounds.
Some specific concerns that were expressed by Bing’s ‘Copilot’ AI include:
Trust Issues: Many agents admit that some of their peers indeed deserve the stereotype.
Communication Woes: Delays and lack of communication are common complaints. Buyers and sellers yearn for timely responses and transparency.
Shady Valuation Tactics: Shady valuation practices irk both buyers and sellers.
Profit Motivation and Aggressive Sales Tactics: The perception of being unnecessary middlemen in the property process adds to the discontent.
Although those are AI responses, this output is based on what has been inputted. Thus, these results are telling (even if not from a scientific study) — it is more vital than ever that real estate professionals don’t wait but proactively address market concerns.
What Consumer Concerns Need Professional Intervention?
Here’s an example of Minnesota REALTORS® actively working to repair and improve current market conditions and affordability through varied land-use regulations and zoning.
As another example, a coalition of housing advocates (real estate brokers, attorneys, nonprofit leaders, etc.) in Atlanta are working with government leaders and homebuilders to create more starter homes at affordable prices.
As a national example, NCRC CEO Jesse Van Tol (center) announced on Wednesday, April 3, 2024 at the Just Economy Conference that NCRC and KeyBank are announcing a $25 million agreement to work together to ensure greater levels of investment in minority and underserved communities. The announcement comes on the heels of a December 2022 report by the NCRC, which found that between 2018 to 2021, KeyBank’s share of mortgage originations to Black borrowers was the lowest among the nation’s 50 largest home purchase lenders. The report also found indications that KeyBank engaged in “redlining in several major cities and a dramatic drop in the bank’s overall lending to low- and moderate-income (LMI) borrowers.”
Wait, what? “Redlining” happens TODAY, still?
Did you know that instances of the illegal practice of “redlining” have been documented within just the last decade?
We are not talking about sixty years ago. We are talking about now. Shockingly, we do not have to look at data prior to federal fair housing laws in 1968 to find occurrences. See the Department of Justice’s Combatting “Redlining” Initiative, which has secured over $107 Million in relief for communities of color, for modern-day instances of unfair housing.
As a friendly reminder, yes, we have fair housing laws now, with the most monumental beginning in 1968, spurred by the Rev. Dr. Martin Luther King's tragic assassination.
“Now. with this bill, the voice of justice speaks again. It proclaims that fair housing for all – all human beings who live in this country – is now a part of the American way of life.”
President Lyndon Johnson
However, laws are not "Disney magic". In other words, laws did not instantly mean all violations would stop. For example, Dateline and True Crime podcasts show that although kidnapping, murder, and other crimes have BEEN illegal, they still happen. Laws simply mean that IF someone is caught and IF there is enough evidence, that person may face some sort of penalty. It is no different for illegal, unfair housing practices.
In short, unfair housing still happens and/or may be a threat (just three – of many – cases in point: this, this and this).
Thus, we would be wise to have "The Talk" fair housing edition to ensure homeowners sell. I know many think of the "birds and the bees" when we say "The Talk", but there is another talk that is key for (what I call) being a Fair Housing D.E.C.O.D.E.R. (with decoder being an acronym to advocate not alienate).
Do you know how to help your clients avoid “redlining” and other forms of unfair housing (including unfair lending)?
Let’s get into it — click here for the full article.
ICYMI
Dr. Shani Mott Spent Her Last Days Fighting For Housing Equality (Inman News) Click here to read the full story
What to Do If A Client Says, "I'm NOT Selling My Home for THAT Price!" (Inman News) Click here to read the full story
“I Wish Millennials Would Stop Complaining About Housing, Mortgage & Rent Prices” (Business Insider and HousingWire) Click here to read the full story