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Fair housing and one man’s example of how to totally fail at it

(BROKERAGE) When selling a home, privately or through a broker, it is important to remember the rules of engagement. Including that rule about being fair.

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home silent fair

Wrong approach

A private home seller, James Prater, has crossed the line in advertising his home for sale in Michigan.

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He included a homemade sign reading “Terms: No Foreigners, Iraq Vet,” to accompany his for sale sign which resides in his front lawn.

Fair housing

Luckily realtors more familiar with the terms of the Fair Housing Act and less openly discriminatory reported Prater’s actions to the U.S. Department of Housing and Urban Development.

The state department of Civil Rights also filed a complaint over the controversial sign.

The sign is in direct violation with both state and federal laws which prohibit discrimination based on national origin. Civil Rights Director, Agustin V. Arbulu believes that if signs such as this are allowed they, “send a message to the community that such advertisements are legal and accepted.”

He does not want others to use similar language in the future.

Semantics

As far as Prater’s defense goes, he claims that this is not discrimination because he has not had any offers on the house yet. Some are also citing the different rules for a private seller of property by individuals, as opposed to what would apply if Prater had a realtor.

However, regardless of the selling situation, discriminatory advertising is still illegal.

Prater’s acts are in violation of The State Civil Rights Act, which prohibits discrimination based on national origin.

Still not okay

Prater, who is a retired Sergeant in the US military and served in Iraq in 2007 and 2008, may have biases based on his personal experiences. However, this does not give him the right to alienate a major group of people from purchasing his home.

As Arbulu mentioned, there is a need to challenge this type of outright discrimination, especially in today’s political climate. These actions can not go unnoticed, or else people will start thinking that they are just another expression of their first amendment right to free speech.

What’s to come

The complaint is still being investigated by the U.S. Department of Housing and Development. For Prater, who is likely to be found in violation, this means possible training and fines in the future.

In addition, his sign has been removed.

#AllSignsPointToUnfair

Natalie is a Staff Writer at The Real Daily and co-founded an Austin creative magazine called Almost Real Things. When she is not writing, she spends her time making art, teaching painting classes and confusing people. In addition to pursuing a writing career, Natalie plans on getting her MFA to become a Professor of Fine Art.

Real Estate Brokerage

Why women don’t self-promote at work as often as men

(CAREER) Being visible and owning well done work continues to be a conundrum for women in the workplace. So stand up and be heard!

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women empowerment

Ladies, if you recently met with your broker (or corporate) for an end-of-the-year review and you failed to share all of your successes and the ways you shined over the last year, you aren’t alone.

A recent study revealed that regardless of the situation, women do not promote themselves in the workplace as much as their male colleagues.

What is clear from the information gathered – women need to realize they are badasses in the workplace and be unwavering in their belief in themselves. And, be ready to share this information with their supervisors or clients if they wish to earn more.

The study, conducted by Christine Exley, an assistant professor of business administration at Harvard Business School and Judd Kessler, an associate professor at Wharton, found there is a broad (no pun intended) gender gap when it comes to self-promotion in the workplace.

As many raises and promotions to higher level roles are dependent upon an employee’s self-evaluation, women are more at risk of missing out on getting hired or higher earning opportunities. In real estate, this quality limits earning potential and can have rippling long-term effects.

The pair considered multiple hypotheses from whether women were less confident and men more, to whether it was a matter of taking advantage of systems where self-promotion leads to incentives, to whether a boss would eventually find out the truth about a worker’s ability.

“In every setting we explored, we observed a substantial gender gap in self-promotion: Women systematically provided less favorable assessments of their own past performance and potential future ability than equally performing men. And our various study versions revealed that this gender gap was not driven by confidence or by strategic incentives, and that it was robust both in the face of ambiguity and under increased transparency,” the pair stated.

What could be at play? If women are punished for excessive self-promotion in the workplace more than men, they are more likely to keep their successes to themselves, the researchers speculate. Prior research into self-promotion in the workplace found that excessive self-promotion suggested gender differences in backlash.

As if we were still living in the 1950s, women often face backlash for being too vocal about their abilities, and risk losing out on promotions because being visible and self-promotional goes against the idea of how a woman should behave. So, while being visible and taking ownership is the way to get ahead in the workplace, for many women the risk of backlash means they sit and remain quiet, being passed over because they fear being labeled “a bitch,” as the study found.

What Exley and Judd determined is there is the need for more research into they “why” of this conundrum.

Meanwhile, the pair’s message is this: Employers (and brokers), don’t overlook women on your team. They may not be as vocal about how good they are, but that doesn’t mean their performance is inferior. And to women out their busting ass and closing deals – take note of your accomplishments and promote your worth when in the field and in the office!

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Real Estate Brokerage

How do you know it’s time to become a broker?

(BROKERAGE) It sounds dreamy to open your own brokerage and be your own boss, but when is it TRULY time become a broker?

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Everyone joins the real estate workforce for a different reason. Some to flip houses, others to represent buyers, and so forth. And most are happy with their broker of choice, but for others, the itch to become a broker becomes so great that it cannot be ignored.

But how do you know when it’s time to become a broker? Maybe it’s time for a new broker because you’re unhappy, but it’s also possible that you have the skills and drive to lead your own company.

To find out, we asked three brokers with thriving businesses:

Jennifer Archambeault is the Broker/Owner of Urban Provision, REALTORS®, a growing Texas brokerage.

We asked her how to know when it’s time to create your own brokerage:

It is time to create your own brokerage when the limitations of your current brokerage restricts your personal or professional growth, hinders your ability to serve your clientele at the highest level or you are no longer able to see the value your current broker brings to the table.

Regardless of the reason, it is important to be mindful of your competency and ability to handle the responsibilities involved with running a brokerage and/or managing or mentoring agents.

Is there a tipping point?

There are often many tipping points causing an agent/broker to dream about having their own brokerage, but they often only clue in on one when they are parting ways. A lack of respect or dissatisfaction within your current company, the inability to come to terms on differences with management, not seeing eye to eye on the company’s mission or vision and not being able to serve clients to the desired standard often top the list of tipping points if the agent leaves disgruntled.

However, there are times it is purely a natural transition having nothing to do with any reason mentioned above and solely taking your career and income to the next level.

Is it better to do so because of a gap in the market or because someone’s independent streak is unavoidable?

Personally, I think it is the latter more than the former. Gaps in the market will change over time but often the desire to be independent doesn’t ebb and flow as easily. If someone’s independent streak is unavoidable they often exude qualities that allow extreme focus to continuously keeping their eyes on a prize.

There are benefits of having your own brokerage, but there are also limitations as well. Some people’s independence can be a hindrance to their business especially when they want to start their own brokerage because they simply do not like or cannot continually follow the rules.

I believe it is better to part ways to build your own brokerage or brand because it satisfies a personal or professional growth need rather than leaving your previous company disgruntled. The latter generally allows for a flawed mindset.

What do you wish you had known before starting a brokerage?

Do not always focus on Plan A because often you’ll end up with the most perfect fit with Plan D.

Being nimble is a must-have quality for anyone in the real estate industry, but owning a brokerage often requires stretching far beyond being nimble and reaching for superhero status. Initially, I believed every agent could be molded into a specific model or a way of doing business but quickly realized that there is a not a one size fits all brokerage regardless of someone with decades of experience said so.

The perception of a brokerage with a large number of agents on the surface implies success. However, the old saying quality over quantity rings very true in a brokerage setting. Stop worrying about what others are doing – be different because that’s how you get noticed. Do what you do well and what works with your clients, for your personality or in your marketplace.

Tyler Forte, Co-Founder & CEO of Felix Homes saw a need to marry technology and real estate.

Here is his take on starting a brokerage:

Prior to starting Felix, I was a venture capital investor and I can tell you that any successful business, whether or not it’s a brokerage, is started because the status quo does not solve the market’s distinct needs.

Speaking specifically to why we started Felix, home sellers are facing a number of challenges that the traditional brokerage model does not address. When I sold my home last year, I saw firsthand how the home selling process is broken. I knew that starting a disruptive real estate brokerage was what I needed to do in order to make the experience of selling a home better.

The challenges homeowners currently face include hiring an agent who does not have their best interest in mind, to the uncertainty of not knowing if their home will be sold and for what price. At Felix, we are looking to provide consumers with the best home-selling experience period.

As far as the challenges we faced when starting a new brokerage, there are many. For one, the real estate industry is slow to adopt new innovative models. This is because current incumbents have built moats around the data and distribution of homes all at the consumer’s expense. In addition, because real estate is governed on a state-by-state basis, educating ourselves on the laws and regulations of each state was a challenge.

Jeff Brown, Owner of BawldGuy Investing has been a broker for decades and is never ever EVER shy about telling it like it is.

How do you know when it’s time to create your own brokerage?

I’ve always contended Dad was right, as you always thought most folks didn’t know when to create their own firm. Over the years I’ve spoken with countless brokerage owners about this very question.

Roughly a third of ‘em actually thought they knew the right time. Me? I did it WAY to soon, though in my defense, I had my dad’s infinite brokerage experience IN the office daily to back my rookie play, stop mistakes BEFORE I made ‘em, and generally mentor the crud outa me.

Most brokers told me they knew when decisions made by their broker bosses just were not what they would’ve done. They usually came a tipping point, where the decision made itself. But again, that was just a third of those with whom I talked. The rest just did what I did, rush in willy nilly. The huge advantage I had was a decades experienced brokerage owner mentoring me daily, in real time, and who, you know, actually gave a damn about me.

So what is that tipping point?

The most often heard tipping point was the feeling of being constrained by their boss’s operating policies. For example, and a gigantic tipping point, was a friend of mine who wanted to run his own office using the Broker-Centric model, not the Agent-Centric model run by the broker for whom he worked.

Is it better to do so because of a gap in the market or because someone’s independent streak is unavoidable?

The latter is merely personality. Sometimes it works to breakaway, and sometimes it’s been catastrophic. Being independent has nothing whatsoever to do with knowing what you’re doing as the person in charge.

The whole ‘gap in the market’ thing has always puzzled me as a reason to open a brokerage. The exception clearly would be that the policies of operation under which you’d run your own office would substantially improve your chances of taking advantage of whatever market gap you perceived. I find that to be uncommon, at least in my experience.

What do you wish you had known before starting a brokerage?

Without even a hint of maybe having a doubt, I wish I’d understood the good news/bad news joke that says: “Well, Jeff, the good news is you’re now the Go-To Guy. The bad news? See the good news.” 🙂

The difference between signing the backs of checks and the front of those checks cannot be overstated. Every single buck stops at your desk, period, end of sentence, over ’n out. Some folks find that to be too daunting.

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Real Estate Brokerage

Applying for a home? Robots and automation may decide your fate

(BROKERAGE) The next background check you have run may not be in the hands of another human being. Is this automation helpful or harmful?

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Man signing application may only be seen by automation

Leasing approval for your next apartment may not reside in the hands of a human being.

Automation has become an integral part of the decision process for landlords when it comes to deciding who to accept as tenants. Screening tools such as ScorePLUS from CoreLogic use a “statistical lease screening model” that calculates a score and determines a potential tenant’s overall risk. CrimCHECK, another product from CoreLogic, can be used by landlords to search a database of more than 80 million booking and incarceration records across 2,000 facilities. This type of software helps landlords and large apartment complexes streamline their processes and reduce manual reviews of leasing applications.

Housing advocates, however, view such automation as more of a problem than a solution. According to advocates when screening tools bypass human “judgment calls”, those decisions fail to take into account critical details and attempt to solve complex choices with a simple pass/fail algorithm. Eric Dunn, director of litigation at the National Housing Law Project, says that nuance is lost when landlords solely rely on automated screening tools and don’t always capture extenuating circumstances around a possible tenant’s record.

Large automated systems often have inaccuracies as well. Monica Webly, the deputy director of litigation at the Legal Action Center, has said that such checks are “notoriously” inaccurate. For example, a record might end up including information from someone with a similar name, leading to a denial in a renting application for a tenant.

“I’ve looked at more criminal records reports than I could count, and I would say that well over half the ones I’ve looked at had some kind of inaccuracy,” Dunns said.

Companies like CoreLogic have faced lawsuits over such inaccuracies. In 2015, a South Carolina man sued the company after he was flagged by a CoreLogic tool as a registered sex offender due to someone with a similar name. While the man was eventually able to resolve the issue, the process took weeks and cost him the apartment he was applying for as a result.

As automation increasingly becomes a part of our everyday lives, scenarios like the above will become more common. Although software like CoreLogic can help landlords process information faster and reduce human error, it comes with its own set of downsides. How to strike the right balance for things such as leasing applications, is the million-dollar question.

At least not all automation has such drawbacks.

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