Lockean Inc

More casual observation during my return back to work is uncovering some disheartening finds as it relates to fair housing violations made by real estate professionals when advertising properties and answering questions posed in public forums. These observations and having studied the behavioral sciences leads me to try and understand why it is these professionals have for YEARS continued to neglect the law. Trying to dissect the endemic problem is necessary in order to try and fix it. However, you have to understand the law, history and behavior in order to correct it. So, I will start with an explanation of the law, why it is important, explain the do’s, the dont’s and then provide my observations, my humble opinion on why we do what we do and how it could be fixed.

First, the Fair Housing Act (Title VIII of the Civil Rights Act of 1968) protects against real estate related discrimination based on race, color, religion, sex, national origin, disability and familial status. Prior to the law, the nation suffered from segregation and discrimination largely based on race and color. Many covenant controlled communities even had rules against a home owner selling their property to a “colored” person and often times they were very specific on how “brown” a buyer could be. The purpose of the law was to extend civil rights and equality to protected classes and allow property owners the ability to sell to whom ever had the financial means.

Now, I have to say that I have NEVER ran across a real estate professional who has made blatant attempts to discriminate based on race or color. However, there is one section of the law that we seem to have difficulty with and that is discrimination based on familial status. What I often see is listing descriptions that tell me a specific property is perfect for a young family. Sometimes there is a description about the home having a wonderful fenced yard that is perfect for children. Finally, I frequently see descriptions that talk about a family neighborhood with A rated schools. Now, I get it…. if the schools are great, you want people to know and if the yard is a selling point, yes you want to mention it. However, are you limiting your exposure to just young families? What about the older couple that may want to live in a neighborhood full of children because they like kids and want a large yard so that they can garden? You are not only doing a disservice to the seller by limiting your marketing audience but you are violating the law. The law states it is unlawful: “To make, print, or publish, or cause to be made, printed, or published any notice, statement, or advertisement, with respect to the sale or rental of a dwelling that indicates any preference, limitation, or discrimination based on race, color, religion, sex, handicap, familial status, or national origin, or an intention to make any such preference, limitation, or discrimination.”

The law is pretty clear. Further, as Realtors we are educated and re-educated on this law ad-nauseam. So why do we continue to see illegal advertising? First, I have to say that I do not think the intention of the advertising is meant to discriminate or exclude groups of buyers. What I think happens is real estate professionals are so excited to promote the best features of a property that they do not take the time to consider the words they choose. Further, the real estate professional is often feed an existing perception of the property based on the owner. A property owner will be the first to over emphasize the park, great schools, other kids in the neighborhood, etc. (especially if they have children of their own) and will insist often times that the information is highlighted in the property description.

So what is a real estate professional to do? First, a property owner doesn’t need a friend to help sell their home. They need an EXPERT. So, it does no good to agree with everything a seller “wants” you to do. It is our responsibility to advice on the LAW, the market, condition and price of a property. Does this mean you have to ignore the fact that the home is in a neighborhood that may be perfect for a young family? No. But we can not limit the marketing to that group either. As an expert, we have to explain fair housing to our seller and give real life examples of what is acceptable and what is not when marketing the property. Further, as an industry, we have to provide real life examples to the experts.

One weakness in the industry is marketing. Creative writing is essential. Being able to describe a property as having a large fenced yard does not need to include the phase “great for children”. As professionals, we should be able to contact each other when we see these mistakes so that we can all learn and set a higher standard. Unfortunately, I have had mixed results with the endeavor. I have called a few and sometimes I get appreciation for pointing out and giving them the opportunity to fix the mistake. However, I have also been told by some that they have been in the business longer than I have been alive and they don’t need my help. In this case, perhaps its time for them to retire or time for me to make a call to the Real Estate Commission or MLS and make them aware of the violation.

As professionals we need to let go of the big ego and open up to suggestions on how we can improve which can be difficult in an industry that is so competitive. Thus, I lay the challenge at the feet of the managing brokers. Train early and often on real estate rules and law as well as effective marketing and then monitor what your agents are doing. If you do, you will protect yourself and your agents.