Corcoran's Brooklyn Heights Office Accused of Bias
The National Fair Housing Alliance has released a rather damning report of the sales practices of Corcoran’s Brooklyn Heights office. The anti-housing discrimination group set up a sting operation in which more qualified blacks and less qualified whites went to the office posing as home buyers. The report alleges that agents in the office engaged…
The National Fair Housing Alliance has released a rather damning report of the sales practices of Corcoran’s Brooklyn Heights office. The anti-housing discrimination group set up a sting operation in which more qualified blacks and less qualified whites went to the office posing as home buyers. The report alleges that agents in the office engaged in two sorts of unsavory practices: Steering, by which prospective buyers were urged to look at neighborhoods based on the color of their skin, and selective disclosure of information. It’s unclear from the article how widespread this alleged activity was or how conscious or subconcious it was (though the anecdote given is fairly blatant). Have any readers had experiences that would support any of these allegations?
Report Alleges Bias by a Real Estate Giant [NY Times]
As a black man who lives in “prime” Park slope and have used Corcoran many times to buy and sell real rstate, I have a few thoughts about the matter.
Our society in general discriminates. If you don’t understand that then you’re going to have problems with real estate in Brooklyn. The same house will cost significantly different amounts if it is in Park Slope or if it is in Crown Heights. In general white families feel more comfortable living in predominantly white areas. Those white areas also cost more to live in. It’s irrelevant that I may be unhappy with that, the fact of the matter is that’s the way it is.
The positive, however, is that things are changing. As neighborhoods become more upscale residents become less ignorant and focus more on class and education. Race still continues to be one of society’s greatest ills.
In my opinion, it’s unfair to saddle society’s ills on Corcoran. They are brokers. They are only interested in connecting buyers and sellers, landlords and renters. When they show white couples who live on the upper east side properties in Brooklyn Heights, they are using their common sense and experience. Can these families move and live comfortably in Bed stuy… Sure But we all know that the white family that can move into Bed Stuy probably knows about and has requested to see predominantly black or diverse neighborhoods. You don’t go from 72nd and 1st to Crown Heights.
I also want to say someting about the National Fair Housing Alliance. They are in existence to find housing discrimination and to out it. Well they found it. It’s here in Brooklyn! It’s always been in Brooklyn. I just think that their attacking Corcoran is like attacking the school teacher for not stopping the student gunslinger who shoots up everybody in the cafeteria.
Corcoran has sellers who are biased, they have sellers who are biased, they have landlords who are biased, and they have renters who are biased. They even have agents who are biased. Yet they are expected to transact in an unbiased manner. It ain’t going to happen.
Why go after Corcoran?
They have deep pockets.
It’s easier than going after Mr. Rosenberg for not renting to that 23 year old black musician.
If they (National Fair Housing Alliance)don’t go after somebody, their budget will be cut.
If we want to stop housing discrimination, we need to look inward and stop looking for scapegoats.
I have experienced this from The Corcoran Group first hand. Upon entering the office I was ignored. Followup was virtually non-existent and this was even before checking my credential. The assumption was that I must be broke (not credit worthy.) Since I am Black, I am sure it was assumed that I would be playing rap music at 3AM. The reality is that I own several homes and have an income way above many of the rent seeking Whites that walked through their door.
I will never give them my business!! Thanks to their attitude, I steered myself to Fort Greene which was “undesirable” (too Black) 12 years ago. The undesirable pot is now a pot of gold for me. Thanks, Corcoran!!
I guess if I were shopping in Fort Greene today they’d steer me away too!!
Anon at 3:31, what’s scant about that evidence? It seems to me like it paints a pretty straightforward picture of bias.
And that last example of racial steering IS egregious and most definitely racially motivated, UNLESS the same broker provided the same service (ie, circled all the neighborhoods with amenities) for every black client that came in, too. It doesn’t matter which NEIGHBORHOODS are predominantly white or black. It matters that a white CLIENT was steered towards the best neighborhoods in terms of amenities (sorry for all the caps, can’t figure out how else to emphasize the terms that are important here)…
there are a handful of agents whose practice allows them to conduct themselves in this manor. It isn’t necessarily condoned by their managers but if the manager gets wind of it and the agent is a good seller then they turn a blind eye and deaf ear! BH Corcoran has about 50 agents. I do know there are a handful who do stand out from the rest. Some of these agents DO steer and DO bring a level of prejudice to the table. Most of their agents are pretty decent and just want to do business. Some are others slicker and you’d never know!
Most of those who benefit from “white priviledge” often fail to see or refuse to acknowledge the disparate treatment that is meted out by businesses and institutions, large and small. This is hopeless.
The issue of bias is not simply that the brokers decided to identify which neighborhoods were “good” or “changing” or “bad” — designations that are often code for “white”, “mixed” or “black”. Rather, the bias also took the form of denying Black buyers information and services that were provided to White buyers and are part of what a broker/agent are supposed to provide. As a African-american, it gets rather tiresome to have to establish my credentials in order to receive the services to which I am entitled and which others often receive without having to do so.
I’m not condoning any racism at all, period. that said, If a broker indicated to me which neighborhoods are thriving (i.e. amenities, subway, public schools) and which are “changing”, and which are just plain dangerous, I would perceive that not as an indictment of an area because of race, or that an area changing means turning white – I would understand that to be the best service to me as a consumer. We chose to buy in a “changing” area and are happy to have made that choice, but also happy to have had the options laid out – and again: not in terms of race, but in terms of how safe the neighborhood is, amenities and so on. I do believe there are real idiots who assume that a black homebuyer doesn’t have assets or won’t care about neighborhood, but there are also brokers who are just providing the service they should with information on the table.
The evidence given by NFHA is incredibly scant. Where are the details of the investigation. Here’s what they have to say in their report. The document is 11 pages long. This is the only portion that discusses their investigation:
NFHA’s investigation of the Corcoran Group Real Estate revealed discriminatory real estate
sales practices, including limited service, lack of followâ€up and withholding of housing
information. Agents provided limited service and information to potential Africanâ€American
homeseekers, thereby restricting their opportunity to view a number of homes in a variety of
neighborhoods where their race does not predominate. In one test, a White homeseeker saw
thirteen homes versus only one seen by an Africanâ€American. Agents furthered engaged in
unequal treatment by providing more detailed financial options and incentives to White
homeseekers. One agent presented a White homeseeker with a sales application, and offered to
negotiate a reduced sales price and research alternative living arrangements. The Africanâ€
American homeseeker received no such service.
Agents at the Corcoran Group Real Estate were also found to have engaged in racial steering.
In this investigation’s most egregious incident of racial steering, one agent produced a map of
Brooklyn and drew a red outline of the areas in which the White homeseeker should consider
living. He pointed to the neighborhoods of Prospect Heights, Park Slope, Windsor Terrace,
1 National Association of Realtors 2006.
Housing Segregation Background Report – Brooklyn
National Fair Housing Alliance http://www.nationalfairhousing.†4 †g.org
Cobble Hill, Brooklyn Heights and parts of Carroll Gardens as attractive neighborhoods for the
White homeseeker, and indicated with arrows the neighborhoods that were “changing.†The
agent also noted the high quality of schools in these neighborhoods as further indication of their
desirability to the White homeseeker.
Aren’t brokers looking to screw everyone?