REALTOR Beware! This is an actual recent email dialogue between someone contacting me to list their home, my response, and theirs.
I received a call from them, secured their email address, and sent them a Market Snapshot from Top Producer, to be followed by a detailed CMA that evening.
I then received the following email:
Fom The Seller
"Thank you for the report. I received your phone message this evening. I will call you on Thursday to get more information from you. Thank you for your prompt response. I would also be interested in knowing the specific ways you would plan to market our property particularly to target the primarily hispanic population/potential buyer in the area. We feel it will be crucial to have information and communication that will be presented in both english and spanish and marketing strategies to monopolize on the foot and road traffic we get from the two schools adjacent to our home. I look forward to hearing your advice."
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From Tony Marriott
"Thanks for the confirmation of receipt of both the Market Snapshot and my voicemail message.
A detailed Comparative Market Analysis (CMA) will follow by email this evening, along with marketing information for your review prior to our discussion.
While we will certainly ensure that marketing activities are in both English and Spanish, we are prohibited by the Fair Housing Act (Equal Housing) from "targeting" specific ethnic groups. For example, we could not advertise the property only in a newspaper printed in Spanish that is popular with a specific ethnic group. Similarly, we are prohibited from "targeting the primarily Hispanic population/potential buyer in the area" as suggested in your email.
With that understanding, we can market and promote your property to secure a buyer from the marketplace - which includes all prospective Buyers.
I look forward to our discussion tomorrow regarding next steps.
Best Regards"
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From The Seller
Silence for five days followed by this email:
"Thank you for your information and time. We decided this week to go with another realtor, but appreciate your response."
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Did the Seller get a REALTOR willing to target an ethnic group? If so, does the REALTOR understand the consequences of their accepting such a listing? Or was it a government official "testing" us?
Know the rules, obey the rules, and if something seems "unusual" - ask your Broker!
Thoughts from fellow Active Rainers?
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Tony - My thoughts are that you did the right thing. And you probably dodged a bullet. I don't know if these people were testers, but would they be sellers that you would want to work with? Even if they agreed with you and chose you to represent them, the issue of race/ethnicity would probably continue to arise as they pushed their own marketing ideas on you.
Consider yourself lucky! And, you did the right thing.
I had a situation like that just over a year ago. The sellers wanted to hire a hispanic agent thinking they could "target" that population better. Instead, a friend of theirs referred them to me. They reluctantly listed with me overpriced. I tried everything I could to get the price where it should be, but with it being a referral, I couldn't just decline the listing.
Long story short, when it didn't sell in 3 months, they told me they were just going to allow their son to live in the house while he was in college. I'm not stupid... I checked the MLS later that week and it was listed by a hispanic agent for the price I was begging for. It didn't sell because the agent was hispanic; it sold because it was then priced correctly!!
Tony,
I'nm not sure which is worse:
A seller getting a REALTOR® willing to target an ethnic group or
A government tester condoning it by telling you that went with another REALTOR® rather than the truth that it was a test and you abided by the law.
So did you get the listing? lol!!!! I have heard this before property particularly to target the primarily hispanic population/potential blah blah blah. I do alot of buisness in Atlanta, and we saw this about 5 years ago.
Excuse me if I might seem to be ignorant of the law here. I know that an advertisement can't show preference to a specific protected group but I never knew that you had to advertise in diverse media. Would it really be against the law to only advertise in Hispanic newspapers? If I advertised in a Hispanic newspaper would I have to also advertise in a black newspaper or a Jewish newspaper in order to not show a preference? Logically, how far would you have to go with this.
I'm always looking to improve my understanding in this area because the consequences could be very severe.
We have active testers in our area. I am always mindful of what I say at all times. The usual area I get tested is from buyers moving from out of state who ask lots of leading questions. I always let them know up front that by law I can not steer them towards or away from neighborhoods.
I will give them sources, like the department of education website where they can do their research. The number one question I get is how are the schools?
I doubt YOU can get tripped up with something as blatant as that. Good work and thanks for the reminder.
What confuses me is the loan programs targeting and being advertised to specific ethinicities; I guess I have some reading to do.
Tony, thanks for this post. It doesn't surprise me that you responded the way you did. Thanks for keeping that bar raised.
I think you made the right decision, Tony. Even if they were legit sellers, it seems that working with them would be problematic on a number of fronts.
To your point on advertising and steering, your comment is my understanding as well, from talking with brokers, and in my CRS and other classes - no implied or explicit steering or targeting.
Sounds like testing is pretty common (I have not run into it) in many areas, and being prepared always makes sense. Sound like you are always ready and pass with flying colors!
Jeff
You had an opportunity to do the right thing and you did. Bravo! It will pay off in the long run.
I think I agree with Mitchell. Although I do believe that it is important to test Agents as a way of monitoring ourselves. I think as Mitchell pointed out , if a test were employed that there should be some statement either to the agent or Real Estate publication acknowledging the test and in effect a congratulations to those who had essentialy passed. And for those that didn't we will read about them and thier punishments in the Real Estate Journal.
Having a Government agency test and advertise the positive results would be a good thing for our industry.
Awesome response Tony! Have you checked to see if the property is listed by another agent?
Can't wait to meet you and Suzanne tomorrow!
Tony,
Not to go off on a tangent, but do you really send a CMA by e mail to prospects you've never met? How can you do that without seeing the house? How do you know they are not your competitors who want to see your work? Also, do you trust your customer to be able to interpret it without you going over it with them?
I have never been tested, but have heard of folks showing up as buyers in offices to see if there is steering going on. My thoughts are that these are real sellers if they had a house, but I'd love to find out if it hits your MLS.
It's amazing that there's people out there that don't understand the laws. This is not just in real estate, it applies to hiring practices as well. I have extensive background in human resources and we are always very careful in dealing with these issues. Anyway, thanks for the heads up.
I actually had an seller/Realtor asking me about my buyers ethnicity and other personal information a few months back. I told him that I could not answer those questions because it was against the law. He responded by asking me if I was refusing to answer. My answer was to repeat I can't it is against the law. I wonder if he was a tester or an idiot?
Ya did right in your responses....and even if it WAS a gov't official "testing' you... you PASSED the test....
You can sleep well at night knowing you have a clean conscience.....
=-D =-D
Years ago, I worked as a tester. Most testing is done by private non profits, not the government. Things have change in the years since I did the work, but usually it was done in teams to see if minority and majority appicants were treated the same. In those days, an email like this would have been followed by a buyer looking for a home in that area in that price range to see your reaction from that side also.
Tests usually are not done at random, but are based on a complaint from someone to see if there is a possibility that the complaint is legitimate, You probably really did run across one of the sellers out there who is either unaware of or doesn't care about fair housing laws. I am very sorry he found a REALTOR who would go along with this.
Lloyd: I wouldn't work with them that is for sure!I think some are just plainly playing dumb and ignore ethical rules.
That's how I read the situation - thanks for the support!
Brian: Well done! My response would have been the same as yours. Did you send another reply asking what features the other REALTOR offered that were more attractive than yours (or something similar?) Since you were preparing a CMA, I assume you know the address. Did you ever find out if there actually was a competing REALTOR by searching the address in the MLS or if it was perhaps a test?
I did not reply as I checked the MLS and found there was indeed a new Active listing - so did not even want to go there for two reasons:
Herb - I wholeheartedly agree with your point about the bureaucrats sharing the positive as well as the negative!
Rick: Not to go off on a tangent, but do you really send a CMA by e mail to prospects you've never met? How can you do that without seeing the house? How do you know they are not your competitors who want to see your work? Also, do you trust your customer to be able to interpret it without you going over it with them?
I have never been tested, but have heard of folks showing up as buyers in offices to see if there is steering going on. My thoughts are that these are real sellers if they had a house, but I'd love to find out if it hits your MLS.
Yes - absolutely will email a CMA to prospects I've never met. It's essentially a "pre-listing" package. If they don't want to meet after that, then I've saved myself a ton of time! The email is always followed by:
Sellers will always try to inflate the value of their house for some reason or another. The MLS tells the tale of how to price it correctly.
It did hit the MLS - not sure if it's appropriate to post the Listing info - my gut says no - so probably won't do that.
Competitors are welcome to see my work - no problem with that. Out of those that see it - how many will actually use it? And if they do - more power to them! I think you'll find that many of the most successful teams and agents are willing to share, as others share with them and together we all continue to improve.
Randy: I wonder if he was a tester or an idiot?
I suspect he was the latter, even if he was also the former!
Egads.....
Every now and then, I get a 'strange' call or e-mail, and wonder if it's a test....I really wish they'd tell you if you give the right response that indeed, they are 'testing' your adherence to fair housing.....
Congrats on passing the test with flying colors! Well put!
SK
Good post, this has a very good point, you should always know and follow the rules because you never know
I was tested in my first week in the business. I was doing floor time and got this call, Don't want to live in these kind of area and don't want this and that. Don't want Crime, where can you find me that home. Don't want to live in that city...Blah Blah Blah.
I advised them that, the best I could do is send them all the homes in the metro area that met their critiria for bedrooms, bathrooms and sqft. Then send them a link to the police for crime stats and they would have to make the decision on their own. I told them my job was to find them the perfect home as they described. As for neighborhoods and the people who they choose to live next to that would have to be their decision.
I will just send homes based on the home discription. They called 3 other people in my office later that week and 2 passed the test and 2 didn't from what we got told at the next office meeting. Was never called in to the office, but did notice 2 agents not on floor time for 3 weeks.
Que bueno!
Mike in Tucson