One of the missions of Hilltop Family Real Estate Firm is to educate the underserved community in real estate processes. A deeper understanding of the processes in real estate equips buyers and sellers with the tools needed to navigate this industry which is known to be biased against people of color. In this blog, I plan to shed light on two important factors such as childhood embedded biases and biased real estate corporations. The ultimate goal of this blog is to empower so you may gain understanding and plan to persevere.
The embedded bias that begins in childhood starts with redlining. Redlining is the practice of targeting neighborhoods (mostly non-white) for higher prices or lending on unfair terms. Imagine a child whose parents live in an underserved, low income community with majority renters or if they are lucky to own a home it is in the worst part of town. Homes in the “worst part of town” pay a minimal amount in taxes towards things like schools. Underserved, low income communities equals; underserved and unfunded schools, thus begins a vicious cycle of poverty. Neighborhoods that have been redlined include disparities such as: Inexperienced teachers, low to no resources for items like textbooks and extra-curricular activities. Lastly, to add insult to injury, according to the National Statistics, Washington Post reports that: African American preschoolers are twice as likely to be expelled as White or Latino children, and five times as likely as Asian American children; Twice as many five year olds face the ultimate sanction for “bad behavior” as four year olds; Expulsions set the path of educational failure for children. So you ask; How can this community win with so many factors against it? Glad you asked, awareness and preparation.
It was discovered that the corporate giant “Redfin Brokerage” has been using biased practices to redline sellers. They are denying services to sellers whose homes do not meet the minimum financial threshold and it was discovered that the homes denied were all in low income communities of course. By establishing a dollar amount to offer services, Redfin eliminates homeowners who would like the wonderful services offered like; lower commissions, market comparisons packaged up elegantly within two days, top tier marketing, the most experienced agents just to name a few of the services Redfin advertises. Low income families are “referred” to third party agents whose commissions are doubled and services are minimum. Redfin creates low income situations for low income families that causes them to be frustrated and settle for less money just to end the real estate process that they were once seen as exciting and hopeful. Hilltop Family Real Estate Firm was created to address the frustrations faced by people of color who want nothing more than a fair and smooth transaction. Everytime a person of color settles for less than they deserve out of frustration by design, they take away from the legacy they work so hard to build for future generations.