Work with independent mortgage brokers

In a study conducted by United Wholesale Mortgage, 90% of real estate agents who worked with an independent mortgage broker would recommend one to their buyers in the future.

Gathering of Eagles

The Gathering of Eagles conference is the Trusted Source, offering brokers, managers and leaders valuable insider industry information on how to run a profitable business.

RealTrending: eXp’s Glenn Sanford

Glenn Sanford, CEO of eXp World holdings, addresses his critics about his agent referral program, where he is taking the company next and growth limiters for the brokerage.

Newsletter

The RealTrends monthly newsletter is known as the trusted industry source for information on trends, strategies, analysis, people and news shaping the real estate industry of tomorrow.

AgentAppraisals & ValuationsFair HousingNewsResearchValuations

Homes in Black neighborhoods are undervalued by $46,000, on average

Homes in primarily Black neighborhoods are undervalued by an average of $46,000 when compared to similar homes in primarily white neighborhoods, according to a recently released Redfin analysis and report. Redfin analyzed data from more than seven million home sales between 2013 and February 2021, and determined that “bias and systemic racism” are the only explanation for the difference in home values. 

Redfin Senior Economist Reginald Edwards blamed racist housing policies – most of which were outlawed – and biases in mortgage lending practices and property appraisals. For example, one study found that, on average, homes in predominantly white neighborhoods have increased in value by $200,000 more than similar homes in Black neighborhoods since 1980, which is after racist practices like redlining were outlawed. 

Redfin Chief Economist Daryl Fairweather said the results of the study draw attention to the fact that Black Americans have significantly less accumulated wealth than white Americans, which is highlighted by the homeownership gap: Just more than 44% of Black Americans own their primary residence, compared to 74.5% of white Americans. Black homeowners also have less equity in their properties than other races, according to Redfin data.

As Edwards noted, the value discrepancy in home values is in part attributable to racial discrimination in appraisals. The Brookings Institute has studied this for years, and recently announced a “large-scale effort to foster a new generation of structural innovations to address systemic racism in the housing market.” And earlier this year, the Appraisal Institute acknowledged and committed to eliminating unconscious valuation bias in its appraisals. 

The Redfin analysis determined that the racial discrimination gap has also created disparities in the amenities located in Black and white neighborhoods. Black neighborhoods are undervalued, and the people who live there also have less access to green spaces, a higher instance of underfunded schools and worse air quality

Real estate agents can fight racism and discrimination in their day-to-day practices by remembering to only show clients and customers homes based on their requested amenities and budget, and avoid steering them toward a particular neighborhood or area because of the clients’/customers’ membership (or non-membership) in one of the seven federally recognized protected classes. 

Most Popular Articles

RealTrending: Tom Ferry reveals top ways for brokers to increase per-agent productivity

Tom Ferry, founder of Tom Ferry International, takes his years of coaching brokers and boils it down to the top things brokers need to do today to increase per-agent productivity, why he thinks some brokerages have rocket-ship growth and how to manage teams.

May 10, 2021 By

Latest Articles

Equity-rich homes outnumber underwater homes 7-to-1

Homeowners continued to see substantial home value and equity growth in the first quarter of 2021 as the real estate market remains pandemic-resistant, with equity-rich homes outnumbering “seriously underwater” ones by seven to one, according to a new report.

May 14, 2021 By