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The right to turn down a listing...or discrimination?

By
Real Estate Agent with Associate Broker, Momentum Realty
Prejuidice? Discrimination?  I am sure there are unsavory agents who have turned down listings for the wrong reason, but what about turning down a listing because you don't want the media coverage?
 
I ran across this article, Octomom Real Estate Agency REFUSED to Sell My Home.  Nadya Suleman is contending that the brokerage's refusal to list her home is discrimination against her, as someone who gave birth to 8 babies. Wow. 
 
People should not throw around the word discrimination so lightly.  
 
We have all turned down listings--or at least found ways not to list properties we believed would be difficult to market.  Is it discrimination or a business decision? We don't know what went into the broker's decision, but it is not discrimination to believe that a property would not be best marketed by your firm. In fact you are doing a favor to the seller if you don't think you are up to the challenge.
 
Maybe the broker doesn't want the noteriety that having the listing could bring?  I am sure there is bound to be microscopic evaluation of the how it is being handled. Is it priced right? Is it easy to see? How do you keep out the media?  It is not an easy listing.
 
Removing the particular seller's circumstances from the equation, maybe the broker just felt that seller was being unrealistic. Maybe they weren't prepared for what it means to market a house. Maybe they weren't prepared to spend the necessary money to get it up to market condition. Maybe they wanted a crazy asking price. Who knows what went into this decision?!
 
I  do not like to see the term discrimination bandied about so lightly.
 
What are your thoughts?
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Comments(30)

Tom Branch
RE/MAX Dallas Suburbs - Plano, TX
Broker, CDPE, SFR, ACRE, Plano TX Ambassador

Brokers are not obligated to take on everyone as a client. The Code of Ethics states in Article 10:

REALTORS® shall not deny equal professional services to any person for reasons of race, color, religion, sex, handicap, familial status, national origin, or sexual orientation. REALTORS® shall not be parties to any plan or agreement to discriminate against a person or persons on the basis of race, color, religion, sex, handicap, familial status, national origin, or sexual orientation. (Amended 1/11)

So as long as the broker has a reasonable reason for declining the listing that's not related to one of the protected classes, I can't see how this will go anywhere.

Tom

Nov 07, 2011 06:21 AM
Alan May
Jameson Sotheby's International Realty - Evanston, IL
Home is where the hearth is.

I discriminate against unreasonable sellers... and last time I checked "unreasonable" was not a protected class!

(otherwise my mother-in-law would have enjoyed Federal protection).

Nov 07, 2011 06:21 AM
Donna Harris
Donna Homes, powered by JPAR - TexasRealEstateMediationServices.com - Austin, TX
Realtor,Mediator,Ombudsman,Property Tax Arbitrator

What I see is a decision to turn down a product that might be difficult to sell.  I mean, she has 14 kids. Is the house going to remain clean for showings? How much notice is she asking for? If she gave demands like 48 hour notice to clean up toys, I wouldn't want that product to sell either...

Nov 07, 2011 06:50 AM
Carla Muss-Jacobs, RETIRED
RETIRED / State License is Inactive - Portland, OR

Maybe she wants to list too high and is not realistic . . . OH snap . . .Octomom not being "realistic"?!?  Plus that real estate agency will be responsible for the showings.  Can you imagine the idiots trying to get into that home just because most people love a FREAK SHOW.  They'd steal a blanket and try to sell it on E-Bay.  Octomom created that media circus NOT the real estate brokerage.  GOOD FOR THEM that they DECLINED to represent that unrealistic seller!!

(This is gonna get you some points for sure!!)

Nov 07, 2011 07:15 AM
Annette Sievert
CB Valley Broker - Corvallis, OR
Corvallis, Oregon

Good for them to reject that listing! The Drama would be unbearable. And yes, I would fight for my right to make business decisions. How dare she? But then maybe this is a new money source, a potential settlement...

I am honestly sorry for those children!

Nov 07, 2011 07:19 AM
Nancy Timberlake
RE/MAX Shoreline - Portland, ME
REALTOR - Southern Maine

I can't imagine this will go anywhere but I feel that as long as I do not discriminate against a protected class, I can be selective about my listings.

Nov 07, 2011 07:27 AM
Bud & Beth McKinney
RE/MAX UNITED - Cary, NC
Cary/Raleigh/Apex NC - The Team That Cares, RE/MAX United

I think that there are a number of factors that go into putting up listings. Some homes just do not have the qualities they need; I had a house once that was all torn up on the inside, overgrown lawn, and animals living everywhere. I would love to list, once you get the place in order.

Nov 07, 2011 08:00 AM
Mitchell J Hall
Manhattan, NY
Lic Associate RE Broker - Manhattan & Brooklyn

It is interesting how the word prejudice became discrimination. The article you quote from TMZ, while not exactly a credible news source never uses the word discrimination yet you used it 5 times and claim you don't like it bandied about.

Prejudice means to pre -judge to form an opinion based on preconception, it doesn't necessarily mean discrimination. Many of the comments here are prejudice statements too but not discriminatory.

A business decision can be based on prejudice and still not be discrimination. All the statements about the seller and her kids, the media, publicity, microscopic evaluations are all prejudiced pre judged and conceived opinions. They may or may not be true but they are not material facts about the property.

Nov 07, 2011 08:56 AM
Tammie White, Broker
Franklin Homes Realty LLC - Franklin, TN
Franklin TN Homes for Sale
I work with expireds. If the seller is unwilling to make the changes I feel are necessary to get the home sold, I don't take the listing. It's that simple.
Nov 07, 2011 09:00 AM
Bruce Kunz
C21 Solid Gold Realty, Brick, NJ, 732-920-2100 - Howell, NJ
REALTOR®, Brick & Howell NJ Homes for Sale

Hi Holly. There are those who reach out at every chance to make a buck off someone else. They have no self esteem and little (if any) morality and have not other way to make money. Unfortunately, the agency that used common sense and followed a business plan will get torn apart because of other's stupidity.  It is very sad.
Bruce

 

Nov 07, 2011 09:23 AM
Dennis Burgess
AmeriTeam Property Management - Mid Florida, FL
Orlando Property Manager and Realtor

Hi, Holly:  In The Octomom's words..."I was appalled to say the least. It is a blatant form of prejudice and I was disgusted that they refused to take my house and list it."

I know a bit about prejudice- and the lack of it.  Growing up in Birmingham and driving by the Sixteenth Street Baptist Church every day for many years of my adult life makes it tough to avoid.

We have to realize, though, that "discrimination", "racism", "molester", "child abuse", "wife beater", etc. are adjectives and monikers so vile for a reason- and should be reserved for those folks and instances where they genuinely apply.

Tawanna Brawley, anyone?  Duke lacrosse team accuser/liar, anyone?  Every illegitimately-claimed case of one of the above plants a seed of doubt in folks' minds that can surely have an effect on how legitimate claims are entertained down the road.

Let's use these words when they fit, and shout it so from the highest of mountains- but let's be careful not to hurt our neighbors who may one day have their true claims scoffed at or dismissed by folks jaundiced and jaded by seeing far too many exaggerations from folks in the past. 

Nov 07, 2011 09:28 AM
Mike Cooper, Broker VA,WV
Cornerstone Business Group Inc - Winchester, VA
Your Neighborhood Real Estate Sales Pro

Holly, I'm with you.  The word, "discrimination" is too widely used for too many non-discrimination things.  Frankly, any broker can turn down any listing for any reason, but to brand any or all refusals as discrimination is unfair without adequate evidence.  Good stuff.  Keep up the good work out there in NVA. 

Nov 07, 2011 09:33 AM
Katerina Gasset
The Gasset Group & Get It Done For Me Virtual Services - Provo, UT
Amplify Your Real Estate & Life Dreams!

I am so sick of the overusage of discrimination and people using it to scare other people into doing things they don't want to do and also using it as a way to make money in law suits etc. It just goes way beyond reasonable these days. 

Brokers are a business and they do not have to take listings they don't want to take as long as they are adhering to the fair housing laws. End of story. Katerina 

Nov 07, 2011 10:09 AM
Joni Bailey
101 Main St. Realty - Huntsville, TX
Your Huntsville / Lake Livingston Area REALTOR®

YIKES! The "D" Word again. We really should not use that word. It may offend someone! 0;O)

Nov 07, 2011 11:00 AM
Eric Michael
Remerica Integrity, Realtors®, Northville, MI - Livonia, MI
Metro Detroit Real Estate Professional 734.564.1519

Holly, a business decision to turn down any potential buyer or seller is just that, a business decisions. I don't base business decisions on discrimination. Period.

Nov 07, 2011 11:48 AM
Michelle Francis
Tim Francis Realty LLC - Atlanta, GA
Realtor, Buckhead Atlanta Homes for Sale & Lease

Holly, 

We turn down more listings than we take, as too many folks want to "try it at a higher price".  No discrimination, just not the market we are looking to serve.  We are polite and respectful, but decline that opportunity.

All the best, Michelle

Nov 07, 2011 01:46 PM
Mel Ahrens, MBA, Kelly Right Real Estate
Kelly Right Real Estate - Hood River, OR
Customized Choices for your Real Estate Needs

Very interesting subject. We've looked at homes before and asked ourselves "Do we really want that home on our website?" It does come right down to being a business decision.

Gretchen

Nov 07, 2011 03:38 PM
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Interesting post. I guess from now on when agents turn down a listing they should  write a disclaimer as to why they are turning it down.                   

Nov 07, 2011 09:43 PM
Holly Weatherwax
Associate Broker, Momentum Realty - Reston, VA
A Great Real Estate Experience

I appreciate all of your comments.  

I particularly appreciate Mitchell's comments, because going back and reviewing the article, he is right; the term discrimination was not specifically used, rather she cited prejudice.  I have always thought that prejudice is the act that results in discriminiation and my mind made that leap seemlessly. I can see how that was not especially fair or accurate.

That said, I do believe this is an interesting case, and despite the fact that it was reported by TMZ (a source that specializes in celebraties) it is a valid discussion.

Thanks for your thoughts!

Nov 08, 2011 12:24 AM
Bob & Carolin Benjamin
Benjamin Realty LLC - Gold Canyon, AZ
East Phoenix Arizona Homes

It seems that any agent can decide to either take or turn down any listing or buyer for any reason that they choose -- there is nothing that says because a person is an agent they have to take every prospective client that comes their way. Maybe they are simply too busy, having health issues or want some time off -- anything at all -- its their career and business. Our 2 cents.

Nov 09, 2011 02:33 PM