A Home For All: Embracing Fairness and Inclusion in Real Estate

At RASM, we are committed to promoting diversity and representation in the real estate industry and ensuring that individuals from diverse backgrounds a re welcomed and supported in leadership positions, real estate agent roles, property management, and other related fields. RASM stands firm with the National Association of REALTORS® (NAR) in our joint commitment to the REALTOR® Code of Ethics, Fair Housing initiatives, adhering to the Americans with Disabilities Act, and fully promoting inclusivity and diversity in all we do.

A Home For All

Brian Tresidder, 2023 RASM President, has made the phrase “A Home for All” his theme for the year. This powerful statement will be carried through RASM’s philosophy every year as we stand for inclusion and respect for all of our members.

“A Home for All” is exactly what it sounds like, ensuring that every real estate opportunity is accessible to everyone. It’s also RASM’s commitment to providing a warm and welcoming professional Association for all our members, without exception.

“I truly believe in trying to make a difference and leaving this world in a better place than when we came into it,” said Brian Tresidder, 2023 RASM president. “At RASM, we have the perfect platform to achieve that, to learn from past societal mistakes, and practice inclusion with a fresh perspective.”

The Dangers Of Implicit Bias

The concept of fair housing and ensuring a “home for all” is certainly not new. The Fair Housing Act was passed more than 50 years ago in 1968. Fair Housing laws and regulations are in place to protect individuals from housing discrimination and to promote equal housing opportunities for everyone. Unfortunately, discrimination in housing still exists today, partly due to implicit biases. An implicit bias refers to unconscious attitudes, stereotypes, and prejudices that affect our judgments and actions without our conscious awareness.

The biases we face today did not unfold overnight, so we cannot expect a quick remedy. However, keeping an open mind, educating ourselves, and committing to change are healthy steps to a better tomorrow.

“I believe taking the approach of educating someone, compassionately and with reason, is the best approach in situations that involve implicit bias,” said Tresidder. “Somewhere along the way, they were influenced and don’t even realize the harm or issues their comments can cause. It all comes back to education and understanding. It’s important to understand what this type of bias is and how to combat it.”

Implicit bias in real estate can manifest in different ways and have significant consequences for individuals and communities. Some ramifications include:

ƒ Differential Treatment: Implicit bias can lead to differential treatment of prospective buyers or renters based on their race, ethnicity, gender, or other protected characteristics. For example, studies have shown that minority individuals may experience discrimination in housing searches, such as being shown fewer listings or being steered toward certain neighborhoods.

ƒ Pricing Disparities: An implicit bias can also contribute to pricing disparities in real estate. For example, appraisals, which determine the value of a property, can be influenced by implicit biases that devalue properties in certain neighborhoods or for certain demographic groups.

ƒ Access to Financing: Implicit bias may also affect access to financing options for certain individuals or communities. Lenders may have biases, albeit unknown to them, that result in differential treatment when considering loan applications, leading to disparities in mortgage approvals and interest rates.

Addressing implicit bias and overall discrimination in real estate involves raising awareness among industry professionals and providing adequate training to recognize and mitigate intolerances.

“We’ve all had influences on us throughout our lives that we can’t control, but the goal is to try and be better and try to learn from each other. Education is the key to breaking bad habits,” added Tresidder.

Upholding A Higher Standard

THE CODE OF ETHICS

Combating discrimination has been at the heart of NAR’s foundation from the beginning. NAR’s Code of Ethics, adopted in 1913, was one of the first codifications of ethical duties adopted by any business group. The Code ensures that consumers are served by requiring Realtors® to cooperate with each other in furthering clients’ best interests. Realtors® are real estate professionals who have chosen to join the National Association and are required to abide by its strict Code of Ethics. The Code was formed to establish the duties of the Realtor®, and to protect both the client and the public. Article 10 directly speaks to the issues of fair housing.

Article 10, Duties to Clients and Customers:

“Realtors® give equal professional service to all clients and customers irrespective of race, color, religion, sex, disability, familial status, national origin, sexual orientation, or gender identity. Realtors® do not discriminate in their employment practices.”

The Code of Ethics provides the backbone for professional expectations of a Realtor’s® conduct. Realtors® are subject to disciplinary action and sanctions if they violate the duties imposed by the Code of Ethics.1

“It’s a poor reflection on all of us if there is even one real estate agent, appraiser, lender, or any entity that serves the real estate community committing a violation,” said Tresidder. “Not only is discrimination illegal and a violation of the COE, but it is an attack on our industry and our reputation. One discriminatory act can hurt us all.”

“There are severe penalties for violating Fair Housing laws or Article 10 of the Code of Ethics,” said Jeff Arakelian, RASM CEO. “We take these violations seriously, and RASM is committed to educating our members to eliminate any potential violations. In addition, our Strategic Plan has been updated to fully integrate DEI into the Association’s programs and activities. We want members of all backgrounds to feel welcome. Whether they are a member of our highest level of governance or a brand-new member, all are warmly welcomed without exception.”

The Fair Housing Act

The purpose of the Fair Housing Act is to make certain that the issues of discrimination are not just ugly; they are illegal. The Act protects people from discrimination when buying or renting a home, getting a mortgage, seeking housing assistance, or engaging in other housing-related activities. The Act prohibits discrimination in housing because of age, race, color, religion, sex, disability, familial status, or national origin. The difference between the Fair Housing Act and NAR’s Code of Ethics is that NAR includes sexual orientation and gender identity in their protected classes. This policy is also embodied in NAR’s Code of Ethics. For more information on Fair Housing policies and laws or to report a Fair Housing violation, please contact our Professional Standards staff at 941-952-3400 or prostandards@myrasm. com. For possible Fair Housing Act complaint visit www. hud.gov/fairhousing/fileacomplaint. 2

Fair Housing Training Requirement Starting In 2023

During the recent 2023 NAR Legislative Meetings in Washington, D.C., the NAR Board of Directors passed a new fair housing training requirement for members. New-member applicants must now complete two hours of fair housing training and existing members must complete two hours of fair housing training every three years as a condition of Realtor® membership, including one education option that is of no cost to members. The three-year cycle coincides with NAR’s existing Code of Ethics training requirement and begins in 2025. The education courses mentioned in this article satisfy the new NAR requirements, but for details, visit the NAR Fair Housing page at nar.realtor/fair-housing 3

FAIRHAVEN: A FAIR HOUSING SIMULATION

Realtors® are committed to abiding by fair housing laws and the Code of Ethics. But sometimes, our past experiences or bias can lead us astray. Educating Realtors® on the dangers of that bias is so critical that NAR has taken major steps to assure the success of its educational opportunities. Based on the foundations of the Fair Housing Act, in November 2020, NAR launched Fairhaven, a new fair housing simulation training for Realtors® that uses the power of storytelling to help members identify, prevent, and address discriminatory practices in real estate. Inspired by real stories, this innovative online experience has agents work against the clock to sell homes in the fictional town of Fairhaven, while confronting discrimination in the home buying process. Learners can walk in the shoes of a homebuyer facing discrimination. The training provides customized feedback that learners can apply to daily business interactions. The Fairhaven training will be updated to meet the new training requirements as mentioned above. For more information on this innovative training, visit fairhaven.realtor. 4

NAR BIAS OVERRIDE: OVERCOMING BARRIERS TO FAIR HOUSING

Providing effective education and training on DEI topics for real estate professionals is essential for positive change, and education provides the building blocks for fostering a more inclusive industry. NAR Bias Override: Overcoming Barriers to Fair Housing is a NAR certification course that helps real estate professionals interrupt stereotypical thinking so they can avoid fair housing pitfalls and provide equal professional service to every customer. Participants learn about the mind science of identity, study how implicit bias can result in fair housing violations and engage in interactive exercises to enhance communication skills and business relationships with clients of all backgrounds. For more information on this class, visit www.nar.realtor/fair-housing/biasoverride-overcoming-barriers-to-fair-housing 4

AT HOME WITH DIVERSITY (AHWD)

Another great resource to aid in your diversity education is the At Home With Diversity (AHWD) offered by NAR and RASM. The coursework for the At Home with Diversity® certification is designed to enable you to work successfully with a rapidly changing multicultural market. It will help you to learn diversity sensitivity, how it applies to U.S. fair housing laws in your business, and ways to develop professional guidelines for working with people in the increasingly multicultural real estate market. For more information on the AHWD course, visit www.nar.realtor/education/designations-andcertifications/at-home-with-diversity-ahwd.

Dei Task Force At Rasm

In addition to the many benefits of education, RASM is launching a DEI Task Force to address these critical discrimination issues, share different experiences and perspectives, and connect with underrepresented populations and markets.

“We are very excited about the upcoming Task Force,” said Tresidder. “The Sarasota and Manatee region is such a diverse area. We have many different nationalities, cultures, and backgrounds represented in a relatively tight community. If we’re not making active efforts to involve and include everyone, then the Association has a very narrow appeal and a narrow impact on the community. It is our goal to greatly expand our reach. This task force will focus on the principles of inclusion that matter to the Association. RASM fully embraces perspectives from all walks of life. We want to make people feel comfortable and included, and that is one of the goals of the task force, to make certain that everyone is treated fairly and given the same opportunities and to be sensitive and aware of meeting the needs of all members.”

RASM is currently looking for members who are passionate about and want to help lead the initiatives needed to support Diversity, Equity, and Inclusion in real estate. If these are areas that you are likewise passionate about, RASM encourages you to submit your name for possible appointment to our Task Force. For more information and to sign up, visit https://www. myrasm.com/dei.

Integrating DEI principles into real estate practices helps promote fairness, equal opportunities, and inclusivity for all individuals, regardless of their background or identity. And promoting diversity and representation in the real estate industry is crucial. However, it is a big undertaking that will require participation from all our members. So, whether you are considering joining the task force, taking one of many educational offerings, or simply joining a committee to share your experiences, we applaud your efforts in making RASM a better place. In addition, if you or someone you know is hesitant about getting involved, know this, you will always be welcomed and find a home at RASM. •

Sources:

1 | www.nar.realtor/about-nar/governing-documents/the-code-of-ethics

2 | www.hud.gov/fairhousing

3 | www.nar.realtor/diversity/diversity-equity-inclusion-resources

4 | www.nar.realtor/fair-housing/fairhaven

5 | www.nar.realtor/fair-housing/bias-override-overcoming-barriers-to-fairhousing