Showing bias in real estate can destroy your reputation, and with it, your career. But why am I telling you. You wouldn’t show bias anyway, would you?
You’re always careful not to discriminate, and not to say anything that could be considered discriminating – even when answering a client’s questions could be helpful to them.
I’m talking about something different – something you might not even be aware of. Something that, if not reined in, could earn you a negative reputation.
Bias in real estate is not usually a conscious choice.
According to psychologytoday.com, “A bias is a tendency, inclination, or prejudice toward or against something or someone.”
As such, it is largely an emotional reaction.
It has little to do with discrimination as we understand it. Instead, it
has to do with your feelings – which might be subconscious.
And, rather than color your judgement against someone or something, it could sway you in someone’s favor.
I was reminded of this by an email last week from a company that trains real estate agents in handling the sale of homes for divorcing couples.
Their message reminded readers how important it is for them to “Leave your bias at the door.” It also pointed out that since so many of our lives have been touched by divorce in one way or another, we are all apt to have some bias.
There are numerous reasons to feel biased.
- Perhaps you have bias against people who verbally abuse a spouse or scream at their children.
- You might have bias against someone with a drinking or drug problem.
- If you’re a hard worker, you could feel bias toward someone who refuses to help support his or her family.
- And since agents are often subject to rants from one or both spouses, it could be as simple as a bias against someone who refuses to clean up after themselves – or someone who is loudly and perhaps unreasonably critical of the spouse they’re divorcing.
It’s difficult to feel supportive and loyal to clients when you’re biased against them.
Bias in real estate is not just a topic of concern for those who handle divorce real estate.
While you may or may not be privy to the same details in a non-divorce client’s life, you do know a few things about them and their lifestyle.
I’ve known quite a few agents who were biased against the very wealthy. It probably had to do with jealously, but it could have been something more. Perhaps they worked for someone wealthy or had a wealthy relative who treated them poorly. Or, perhaps they were raised to believe all wealthy people were liars or cheats.
There are those who are biased against people with poor credit, those who took the wrong chances and now have to do a short sale, or those who are facing foreclosure.
Some people are biased against those who are overweight. And today, far too many are biased against those who are “on the other side” politically.
You could hold real estate bias against people with certain personal traits, such as the words they choose to use.
I’ll admit that I felt bias against a buyer who seemed unable to complete a sentence without using the “f-word.” Fortunately for me, he was working with one of my agents who wasn’t as bothered by it.
And I do admit to a bias against liars and cheats. I once had a gentleman call me to look at property that he wanted to sell immediately. He wanted me to get it sold and closed before his wife got back from vacation so she wouldn’t know until it was a done deal. I was very happy to say goodbye and tell him that since her name was on the title, that could not be done.
What can you do to prevent real estate bias from hurting you?
First, choose a good-for-you real estate niche and direct your marketing
efforts to that niche.
If you don’t care for wealthy people, do NOT try to build your career around selling their homes!
Instead, choose the kinds of homes and people you enjoy working with.
- Do you enjoy working with the elderly? Choose senior relocation as your niche.
- Do you prefer being around young people with small children? Target the neighborhoods and the price ranges where they are most likely to be found.
- Do you love people who lean toward “earthy” activities such as gardening and keeping chickens? Work on listing ranchettes and small acreages.
- If you love being around people who enjoy the downtown night life, list condos within close proximity to those establishments.
- Maybe you have great respect for members of the military and should develop a niche helping VA buyers and sellers.
- Perhaps it’s not homes you love, but undeveloped land. Use this set of prospecting letters to get more of those listings.
The biggest mistake you can make in choosing a niche is to make your choice based on the selling price of the property. If you don’t enjoy the people who buy and sell those properties, you’ll hate your work, and you’ll do poorly.
Because yes – people can tell when you are genuine and when you are not.
When you enjoy the people you’re working with, you’ll do your best work. When you don’t, you wont. And in fact, you may leave them shaking their heads and saying “I sure made the wrong choice when I picked that agent.”
If you recognize your real estate bias at the first meeting…
…and you know you will not enjoy working with these clients, refer them to another agent.
I know, it’s hard to give up any client, especially if you’re not swamped
with business. But it’s still the best thing you can do for yourself.
If a short conversation with new prospects tells you that you don’t want to spend your time with them, DON’T spend any more time with them.
If you go forward anyway, you’ll be sorry and they’ll be dissatisfied. And, since you won’t be giving their needs and wants your all, you just might end up not earning a dime.
Of course, there are times when the best idea is to simply turn down the business without referring it out. I’m thinking of those (fortunately rare) times when you come across a foul-mouthed person who has nothing but bad things to say about the last dozen agents they’ve had. You’ll know that the agents weren’t the problem. They were.
What if you begin working with a client and then realize you can’t stand them?
Force yourself to do your best while trying to limit your time with them. In fact, you might want to consciously do more than you think you need to do – just to counterbalance your bias and your subconscious resistance to helping them.
And then… whether you close a transaction for them, their listing expires, or you can’t locate the property they want… when you’re finished, be finished.
Once again, there are exceptions. I’ve read more than one story about sellers who were verbally abusive to agents or buyers who showed up drunk for home tours. In those cases, it’s best to just cut the ties immediately.
My experience with the snooty attorney…
I once had a client who was an out-of-state attorney. He had purchased several riverfront and lakefront properties here and now wanted to be rid of them.
He was so proud of who he was, and so rude to all of us country hicks, that I couldn’t wait to be rid of him. I listed and sold a riverfront parcel and should have asked to list the house on the lake, but I didn’t. Instead I went straight back to the office after the closing and deleted him from my database entirely.
So there’s my real estate bias…
Whether people are rich or poor, if they let it be known that they believe themselves to be better and more important than everyone else, I want nothing to do with them. And that’s true for me no matter what occupation they’ve chosen.
I’m also biased against people who lie and people who abuse animals. And – I’m biased in favor of those who love their dogs and cats.
What bias do you have that you freely accept and admit?
