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“Life isn’t fair, Habibie“This is a common reaction in children and usually leads them to accept a situation fundamentally rather than throwing a tantrum.
On the contrary, as adults, especially in the American housing arena, housing equity is required by law, so if you witness injustice, speak up and make your voice heard. But what is fairness?
When I go out as a fair housing instructor, I often hear learners say that housing equity means every protected class is treated equally.
That’s a good start, but there’s more. However, some people don’t seem to understand fair housing beyond understanding protected classes, whether federal or local (e.g. religion, family status, military status, criminal record status, etc.), so let’s dig a little deeper.
4 Types of Fairness Necessary for Fair Housing
fair distribution
This type of fairness focuses on the outcomes or distribution of resources and benefits. It is related to whether the distribution of goods, wealth, opportunities and rewards between individuals or groups is just and equitable.
Recent Digital Redlining Settlement Redfin is an example of housing injustice exposed through the misallocation of residents in Detroit and its surrounding suburbs.
information fairness
This is about the adequacy and transparency of information provided in the decision-making process. It involves ensuring that all parties have access to relevant information and understand the basis for decisions that affect them.
This is just an example of a recent matching quiz The result (imagine a mystery shopper, but for real estate, where the only difference between the fictional shoppers is the characteristics of their protected class—same income, credit score, but perhaps different religious beliefs, etc.).
The report states: “Overall, rental testing shows that housing providers are more likely to provide white testers with more detailed information, respond to their messages more frequently, and offer more favorable terms than their matched counterparts. .
Procedural fairness
Also known as procedural justice, this refers to the fairness of the processes and methods of decision-making and dispute resolution. Key elements of procedural fairness include:
transparency: The process and criteria used for decision-making should be open and clear to all parties in a real estate transaction. This includes providing information on how decisions are made and the basis for them.
consistency: Procedures should be applied consistently in similar cases and circumstances. This helps ensure that decisions are not arbitrary and that similar situations are handled in a similar manner.
impartiality: Decision makers should remain neutral and impartial. They should have no personal interest in the outcome and should not show favoritism or bias to any party involved.
right to be heard: Individuals affected by decisions should be given the opportunity to present their views and evidence. This usually includes the right to lodge a complaint with company management.
Right to legal representation: People have the right to seek legal advice during the decision-making process (usually for free through HUD or a local fair housing agency).
reasonable decision: Decisions should be based on evidence and relevant information and supporting documentation should be shared with the complainant. The reasons for the decision should be clearly stated, explaining how conclusions were reached and why certain actions were taken.
Review and Appeal: Mechanisms should be established to review and appeal decisions. This corrects errors and ensures accountability in the decision-making process.
For example, not all appraisals are low estimates, but when a home is assessed too low, it rears its ugly head, like This is the case of the late Dr. Shani Mottthe above seven principles of procedural fairness are also usually missing in some capacity (either one or all seven) in the offending companies.
Thankfully, these areas are beginning to be reformed through laws like these: this and this.
But why wait for legislative reform? These are proactive procedures and now every real estate company, bank/lender and appraiser can set policies.
interactional fairness
This refers to the quality of the interpersonal treatment people receive when making decisions. It involves treating individuals with respect, dignity and honesty. It also includes providing explanations for decisions, which helps build trust and respect in relationships and organizations.
Case in point: social media influencer “Dr.” Science Expert “Crow” Baxter Shares her unfortunate experience of buying a home for the first time The process seemed fair enough until a few weeks after her purchase offer was accepted, she happened to be excitedly driving by her soon-to-be new home (as most first-time homebuyers tend to do).
Her first interaction with a seller. Hours later, the homeowner made the bold claim that he wanted to cancel the sale because the buyer was black.
Interestingly, it would be nice if both the homeowner and the homebuyer had an agent arrange the visit between them…oh wait, they do, but the agents on both sides seem to have “dropped the ball” . Some people think of real estate agents and brokers as just “overpaid door openers,” but we are skilled middlemen. The key, however, is that we be proactive.
Have you ever had a “conversation”?
As I mentioned in this conversation YPN Live EventsDr. Baxter’s agent likely didn’t have a (first day) routine.”conversation” (Fair Housing Edition), for clients of all backgrounds and demographics.
Unfair housing awareness is key because our clients may have pure intentions (just to buy, sell, or rent a home), but the person on the other side of the table may not, as Dr. Raven Baxter rudely learned. Let’s learn from this viral fiasco and be more proactive.
Start today by making the fair housing conversation part of your first meeting with every client, whether it’s a listing appointment or buyer consultation (or other real estate transaction).
Promote interaction, distribution, information and procedural fairness:
- Fair housing laws are not “Disney magic,” so they No Magically stop discrimination. However, they possible impose penalties if Someone got caught. Remember, in many cases, a complaint must be filed within a year; document and Report Unfair practices against HUD and local fair housing advocacy agencies, and consult Partner with the National Community Reinvestment Alliance and the National Fair Housing Alliance.
- Of course, staging a home should only involve neutralizing the property, not the people who own it. low profile when”secret shopper“The opposite protected class covers homeowners (e.g. Christians vs. Muslims, white vs. black, able-bodied vs. differently abled, male vs. female, single vs. single with children, etc.) Receipt and learn about the area Compare so you can help your sellers appeal negative reviews if needed.
- Sellers can Harmlessly Thinking, “We want a family of five like us to be able to enjoy this home.” (These are the seller’s exact words!) decoding Legal for sell-side clients and advice to buy-side clients Strip Protection Class Identification Information provided where permitted/permissible by law (e.g. name, email address, pictures, love letters, etc.). .
- never assume loan terms Beneficial to your buyers; Compare Have at least three offers from different lenders outside of your neighborhood (especially if you’re in a formerly “redline” area).
- Know that you may be judged and dismissed based on the type of loan you have (the FHA is considering you), so look for a reputable lender Grants and Programs Help your buyers move forward traditional.
Dr. Lee Davenport is a real estate coach/educator and author who trains real estate agents to provide exposure and opportunity in real estate. Connect with her on Instagram.
