{"id":3443,"date":"2022-08-30T15:40:58","date_gmt":"2022-08-30T15:40:58","guid":{"rendered":"https:\/\/www.realtrends.com\/blog\/2022\/08\/30\/opinion-bias-in-real-estate-may-not-be-what-you-think\/"},"modified":"2025-03-13T02:46:27","modified_gmt":"2025-03-13T02:46:27","slug":"opinion-bias-in-real-estate-may-not-be-what-you-think","status":"publish","type":"post","link":"https:\/\/www.realtrends.com\/blog\/2022\/08\/30\/opinion-bias-in-real-estate-may-not-be-what-you-think\/","title":{"rendered":"Opinion: Bias in real estate may not be what you think"},"content":{"rendered":"\n<p>Sometimes change is thrust upon us \u2014 think COVID-19. In January of 2020, most people\u2019s closest association with Corona was beer. The general consensus was that the virus would be just another passing news story \u2014 it wouldn&#8217;t have any real or material impact on our lives. As any professional associated with the real estate industry knows, the impact went way beyond virtual home tours and fluctuating interest rates.\u00a0<\/p>\n\n\n\n<p>A similar cognitive dynamic occurs when laws change. In California, <a href=\"https:\/\/leginfo.legislature.ca.gov\/faces\/billTextClient.xhtml?bill_id=202120220SB263\">Senate Bill 263<\/a>, goes into effect on January 1, 2023. This law requires real estate agents licensed in California to take a two-hour implicit bias course. Similar requirements already exist for California lawyers, nurses, and doctors.<\/p>\n\n\n\n<p>The course includes the following:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>A component regarding the impact of implicit bias, explicit bias, and systemic bias on consumers and the historical and social impacts of those biases.<\/li><li>Actionable steps licensees can take to recognize and address their own implicit biases.<\/li><\/ul>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-don-t-dismiss-how-implicit-bias-impacts-your-decisions\">Don&#8217;t dismiss how implicit bias impacts your decisions<\/h4>\n\n\n\n<p>When learning of this law and the training requirement, many immediately experience a psychological phenomenon of \u201cothering.\u201d A <a href=\"https:\/\/www.realtrends.com\/blog\/articles\/are-fair-housing-laws-falling-by-the-wayside-in-todays-market\/\" target=\"_blank\" rel=\"noreferrer noopener\">bias born out of our reluctance<\/a> to have anyone tell us what to do and an over-reliance on our own knowledge. Othering immediately dismisses the importance of understanding how implicit bias impacts your decisions, relationships, and, in this context, your real estate practice.\u00a0<\/p>\n\n\n\n<p>&#8220;I would like to believe that I don&#8217;t have biases,&#8221; says Grazia Bennett, a Realtor with <strong>Sotheby&#8217;s International Realty<\/strong> in San Francisco. &#8220;In reality, I know that I have natural and unintentional biases. It is my responsibility to become aware of these and to act to minimize or eliminate them. All players in the real estate industry \u2014 brokers, agents, appraisers, escrow and mortgage professionals \u2014 have been called to look inward and change not only at the business level but also on a personal level.&#8221;\u00a0\u00a0<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">The Bias ecosystem<\/h4>\n\n\n\n<p>As illustrated in the <a href=\"https:\/\/percipiocompany.com\/workplace-bias-ecosystem\/\">Bias Ecosystem<\/a>:<\/p>\n\n\n\n<p>1. \u00a0 \u00a0 Cognitive bias is a by-product of how our brains process information.<\/p>\n\n\n\n<p>2. \u00a0 \u00a0 Social biases evolve through our actions and behaviors increasing over time.<\/p>\n\n\n\n<p>3. \u00a0 \u00a0 Institutionalized biases become embedded into our work processes, cultural norms, and organizations.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">A contextual understanding is necessary to implement real change.&nbsp;<\/h4>\n\n\n\n<p>This is where the law and practice of real estate meet. Sometimes it takes legal action to assist in fostering change. Take the <strong><a href=\"https:\/\/www.realtrends.com\/blog\/articles\/opinion-54-years-after-the-fair-housing-act-challenges-remain\/\" target=\"_blank\" rel=\"noreferrer noopener\">Fair Housing Act<\/a><\/strong> in 1968. While even the most ardent advocate will concede it wasn\u2019t the final &#8220;end-all-discrimination&#8221; solution, it was a necessary step in shifting tectonic societal norms, otherwise known as institutionalized bias. Systemic change takes time. <\/p>\n\n\n\n<p>There is much work still to be done so this law will be fully enacted, and its desired effect fully realized, despite its appearance over fifty years ago. Zip codes are still a major factor in setting ourselves up for success in life.<\/p>\n\n\n\n<p>As a professional working in the real estate industry, it is imperative to understand how implicit bias impacts your decisions, your relationships, and can lead to disparities in how real estate transactions take place. <\/p>\n\n\n\n<h4 class=\"wp-block-heading\">Start with a thorough self-examination <\/h4>\n\n\n\n<p>Deepen your understanding of your own implicit biases and develop real-time strategies for disrupting bias in client and professional interactions. While this law, SB263, will mandate professional development, progress only occurs if the biases are named and tamed. <\/p>\n\n\n\n<p>Through awareness over time, a change in mind and heart leads to different behaviors, transactions, and disruption in processes, protocols, and who gets to live where. This is the longer-term strategy for disrupting the institutional biases that still remain in our societal structures.\u00a0<\/p>\n\n\n\n<p>If COVID-19 has done one thing, it is to lay bare the inequities that exist and persist. It is time to move beyond simple gestures like using \u201cprimary bedroom\u201d instead of \u201cmaster bedroom\u201d and begin really exploring how to make the dream of homeownership a reality for wider demographics. <\/p>\n\n\n\n<p>And if you&#8217;re reflective and intentional at mitigating bias, you will no doubt discover you can help even more people achieve the resplendent dream of home ownership.\u00a0<\/p>\n\n\n\n<p><em>Matthew J. Cahill is president and principal consultant with <strong>Percipio Company<\/strong>.<\/em><\/p>\n\n\n\n<p><em>This column does not necessarily reflect the opinion of RealTrends\u2019 editorial department and its owners.<\/em><\/p>\n\n\n\n<p>To contact the author of this story:<br>Matthew J. Cahill at <a href=\"mailto:mjc@percipiocompany.com\">mjc@percipiocompany.com<\/a><\/p>\n\n\n\n<p>To contact the editor responsible for this story:<br>Tracey Velt at <a href=\"mailto:tracey@hwmedia.com\">tracey@hwmedia.com<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>As a professional working in the real estate industry, it is imperative to understand how implicit bias impacts your decisions, your relationships, and can lead to disparities in how real estate transactions take place.<\/p>\n","protected":false},"author":15802,"featured_media":4822,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3255],"tags":[],"coauthors":[2817],"class_list":["post-3443","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-archive"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v25.4 (Yoast SEO v26.8) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Opinion: Bias in real estate may not be what you think - RealTrends - Blog<\/title>\n<meta name=\"description\" content=\"It is imperative to understand how implicit bias impacts your decisions and may lead to disparities in how real estate is transacted.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.realtrends.com\/blog\/2022\/08\/30\/opinion-bias-in-real-estate-may-not-be-what-you-think\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Opinion: Bias in real estate may not be what you think\" \/>\n<meta property=\"og:description\" content=\"It is imperative to understand how implicit bias impacts your decisions and may lead to disparities in how real estate is transacted.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.realtrends.com\/blog\/2022\/08\/30\/opinion-bias-in-real-estate-may-not-be-what-you-think\/\" \/>\n<meta property=\"og:site_name\" content=\"RealTrends - Blog\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.realtrends.com\/blog\/wp-content\/uploads\/sites\/9\/2025\/03\/9ced5ef4-69ab-4ba7-a7cd-ec49be7b274d.png\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"675\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Matthew J. 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