Is This Racist or "Pragmatic"?

Question

In my retail practice, I kinda enjoy it when I show homes being offerred by another flipper.  Gives me a chance to critique their work, and sometimes pick up a thing or two about what fixtures are "in", what staging should be used, what flooring the competition is going with, etc.  Rarely does it turn into a borderline offensive experience.  This time it did.

After showing a property that was being offered by a well known local flipper, I made a "feeler" call to the agent.  After swapping some flipping war stories (he is their exclusive agent for that zip code and a few surrounding it), we got down to brass tax.  He then said something I couldn't believe he actually said, given all the rules about redlining, fair housing, etc.

Other Agent:  So basically, what I'm saying is, if you can get your buyers up to $XXX,000, I'm happy to push your offer to the front of the line.  It would be great to see some red blooded Americans stepping up as homeowners, and I'd love for you to get paid instead of one of these idiots that doesn't speak english.

Me: Uhhh... Ok I'll see what I can do.  Gotta go.

Wow.  I'm usually ready for anything when talking to another agent, but this took me by surprise.  While I agree it is difficult enough to communicate with a lot of agents even when the same language is being spoken, and I too would want to eliminate that obstacle if possible, I think his statement goes beyond something I'm OK with.

Now don't get me wrong... I'm not here to try and singlehandedly end racism, I'm not that naive.  I am however a zealous defender of real estate investing, and behavior like this would almost certainly give flipping a bad name.

So, BP Community... what (if anything) is to be done here?

Account Closed · Answer

It's just sounds anti-immigrant.  That's all over the nation right now.  Most immigrants today are people of color.  120 years ago they were mostly white and a lot of them spoke English.  Immigrants have always created fear and resentment.  People can't seem to remember that EVERYONE in the US has immigrant heritage.  If you want racism, I have heard a lot worse.  People in my RE farm didn't get the PC memo and don't even try to cover up their fear. I've heard more overtly prejudicial comments about race and religion (and women!) in last the ten years in the oil towns I work than I ever heard growing up in the rust belt cities or in NYC or in NJ.

As for the English speaking comment, it's just a fact of life in CA real estate that a huge portion of buyers won't speak English well, because a huge portion of the population in CA doesn't speak English well. Hard for the listing agent to cut himself off from that, even in Newport Beach. :)

Joel Owens · Answer

Jake just come on down here to Georgia for awhile and your skin will get REAL THICK fast.

James H. · Answer

I'm not sure why the seller would care who bought the property as long as the money was the right color. From a strategic point of view, I can see why he would want to deal with an English speaking agent to ease communication. But I don't see anything pragmatic about limiting the buyer pool.

Based on what you've shared, there is really no proof of racism. There are lots of races that are red blooded, American and speak clear English. I grew up in the west, but have lived my adult life in Texas. So, I know some conversations that are had around my part of the country, although not racist, could be percieved as racist in California. I think the context of your region and nuiances in the actual conversation you had matter. Considering you know your regional norms and were participating in the conversation, it appears you detected racism that might not otherwise be apparent from reading your post. In general, I would think a racist leaning person would make comments in such a style, but you never know. Personalities range across the board.

As for your part, as an agent, all you can do is bring whoever is interested, regardless of ethnic, racial or language. Maybe this guy just got off a customer service call that was farmed out to India and was just venting about something else and it got tied into his conversation with you somehow. I would just proceed as you normally would.

Joseph M. · Answer

Definitely does sound racist. I think it's stupid to want to limit who buys your home or who you rent to based on race, especially stupid in a market that is not necessarily booming as it was some years back. I think the advice others have given is pretty good.

And I am sure there are many geniuses in the world that don't speak english. Many wealth people with CASH from other countries so it would seem dumb to limit yourself to just "Americans"

Sandy S Harris · Answer

Jake Kucheck, good for you for calling this out. I agree with Michael Siekerka, if you thought it was, then it probably was. I actually lived & worked in the OC, and this is pretty standard fare. In my work as an agent, I have had sellers, buyers and brokers say some pretty crazy things over the phone here in southern California. Of course, when they met me in person there were a few awkward moments ;-)  So, good for you!!

Michael Seeker · Answer

I'd say you have to go with your gut.  If it felt racist when he said it, it probably was and you're probably not the only person to recognize that.  It might be worth checking with the local board to see if there have been any other complaints on the guy.

If I were in your situation, I would probably reach out to the seller(s) and let them know that their selling agent is a racist pri*k and that it might be costing them money.  Either they share his views and aren't the best people to work with or they don't and they'll be apalled that this guy is losing them money and business.

Karen Margrave · Answer

Jake, we're new to Orange County, and what I've found is that overall most of the people down here are very nice, and act professionally - and most speak English.  I think your reaction was probably right, and the agent was if not acting in an illegal manner, definitely was rude and insensitive. One thing about this area is that there are people from all different ethnic backgrounds and cover the entire financial spectrum. The languages in just one neighborhood (no matter the dollar value of the area) are staggering. If you believe the agent is acting inappropriately, get your deal done so as not to involve your client in a situation that might not best represent them, close your deal, then afterwards discuss it with the agent. Maybe something like, "I'm sure you didn't mean anything by it and weren't serious, but when you said .... it made me feel very uncomfortable, and I'd never want you to think I dislike people of other ethnic backgrounds, or would in any way want anyone to give me or my clients preference over someone of another ethnic background based on that alone." That way he knows your feelings, and you don't back him into a corner, as he may have just been having a bad day, or made an error in judgment.

Christopher Keivit · Answer

Ibrahim - on point 1 - correct (if he's not showing all offers, then it is illegal in IL); point 2 - also illegal in IL (agents must present all offers); point 3 - unethical to say the least, illegal?  not sure.  That being said, I have to agree with Vince - your heart is in the right place, and personally, I would avoid the LA.  Good luck!!!

Vincent D. · Answer

Some people are shallow, small-minded and mean.  Endless variety of perspectives and backgrounds roam the industry.  people come and go.  you have to live your life, regardless.  If he is a fool, he will take himself out of the equation without your misspent energy nudging him along an inevitable, self-inflicted demise.

My lineage is Italian, and my ancestors immigrated without papers ("WOP") in hordes, eventually adapting into the American culture after spending generations without knowing the English language.  This is not unlike our present Latino immigration, largely Mexican.  Hard working, family oriented, loyal, and generally honest.  These have always been my best tenants and some of the kindest people - broken English and all!  I imagine my own ancestors much the same!

Rest assured, in any case, your heart is in the right place to have felt tweaked by his comment.  If your conscience tells you to avoid this agent, don't deal with him any more!  Some things last for an eternity, unlike a single real estate deal!

Best,

Vince

Ibrahim Hughes · Answer

Christopher - the agent promised to move it to the "front of the line". My thoughts are that 1) it could be illegal if he meant that the other offers wouldn't be shown, 2) the LA may have had orders not to present any offer to the owner below $xxxx.xx OR 3) the LA would try to exert his influence to have the higher offer accepted. Not sure of that necessarily means that the LA did anything illegal in regards to the higher offer unless it was #1. I could be wrong here. Your thoughts?

Is This Racist or "Pragmatic"?

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