real estate Archives - Page 79 of 86 - Real Estate News and Commentary

February 26, 2008October 5, 2019

Stereotyping, Bias and Equal Housing

by Dan Krell

What comes to mind when you think about equal housing? If you are like many, your first inclination is to think about incidents of racial or sexual discrimination. Unfortunately, however, there are many other forms of bias that have affected (and still affect) some home buyers.

Why do people have bias towards others? Dr. Mahzarin Banaji, Professor of social psychology at Harvard University, has studied stereotypes and bias for over twenty years and has published many studies about the topic. In a past Psychology Today article, Dr. Banaji stated that this area of research has shifted from the outward expression of bias to inward beliefs and stereotypes. She found that even though individuals may outwardly express their acceptance of all people, their beliefs may be vastly different. Does this mean that it is human nature to seek out and perpetuate differences in people?

One suggestion is that our beliefs and internal creations of stereotypes may be a manifestation of societal, cultural, and familial influences combined with an individual’s personal experiences. As we outwardly strive for an equal society with no boundaries, psychological research indicates that we as individuals are a long way from unconditional acceptance of others. In other words, bias and stereotyping may reveal more about us individually than they do about our present culture.

Until we can change the nature of our inward stereotypes and eliminate the outward expression of all bias, we continue to need laws to protect those who are victims of stereotyping, bias, and discrimination. Federal and local laws prohibit discrimination against protected classes of individuals. Federal law prohibits discrimination due to race, color, sex, religion, national origin, mental or physical handicap, and familial status. The State of Maryland adopted the Federal protected classes and added additional protected classes, under article 49B in the Annotated Code of Maryland (COMAR), of martial status and sexual orientation.

Chapter 27 of the Montgomery County Code also protects classes of individuals from discrimination in real estate transactions. In addition to the Federal and State protected classes, Montgomery County law also protects individuals form discrimination due to ancestry, source of income, presence of children, and (effective February 20, 2008) gender identity.

According to a County Council Press Release (Release ID: 07-091), the new Non-Discrimination – Gender Identity legislation, “affirms the rights of transgendered residents of Montgomery County to equal treatment under the law.” Additionally, thirteen states and the District of Columbia (as well as other jurisdictions) have passed similar legislation.

In a real estate transaction, a person’s ability to purchase or rent a home is the only item of significance. Unfortunately, bias, stereotyping and discrimination continue. If you have been a victim of discrimination, you can report the incident to the following: The Department of Housing and Urban Development (www.HUD.gov) investigates claims of housing discrimination on federally protected classes; The Maryland Commission on Human Relations (www.mchr.state.md.us) investigates complaints of discrimination based on COMAR article 49B protected classes; The Maryland Real Estate Commission also investigates discrimination based complaints against real estate licensees and brokers, and takes any necessary actions including revocation of licenses; and The Montgomery County office of Human Rights (240-777-8450) investigates housing discrimination complaints filed within the county.

This article is not intended to provide nor should it be relied upon for legal and financial advice. This article was originally published in the Montgomery County Sentinel the week of February 4, 2008. Copyright © 2008 Dan Krell.

January 15, 2008November 23, 2021

Single Family Home vs. Townhome?

by Dan Krell
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As list prices of many single family homes have been reduced, many home buyers find themselves weighing the option of purchasing a townhome versus purchasing a single family home. The numerous options create a dilemma for home buyers, requiring them to think twice about their home requirements, lifestyle and long term goals. When faced with such a decision, home buyers often need to clarify their beliefs and misconceptions between townhomes and single family homes.

Given the selection between a single family detached home versus a townhome, what would you choose? The answer may not be as easy as you may think. There are reasons why a single family home may be competing with a townhome. Often times, the single family homes may be in fair to poor condition, needing obvious repairs or requiring immediate attention from the home buyer. Sometimes the homes may be a pre-foreclosure or short sale requiring third party approval, which has its own subset of considerations (dealing with a third party and trying to keep your interest rate lock through the lengthy wait). However, some single family homes may be well cared for but have prices reduced because of an atypical floor plan or style that does not fit the typical home buyer’s lifestyle.

Is it about the size? One misconception that home buyers have is that townhomes are inherently smaller than single family homes. However, many townhomes have living areas that are comparable or superior to that of single family homes; many townhomes are built with over 2,000sf gross living area and have a 1 or 2 car garage! Of course, depending on your lifestyle, the size may be secondary to the floor plan or layout of the rooms and amenities. Although townhome living has been described as vertical living, larger townhome interiors have high ceilings and open floor plans making it feel like a single family home.

Another misconception that home buyers have is that single family homes are not bound by a Home Owners Association (HOA). Although the chances are very good that the townhome you are considering is governed by the rules, restrictions, and covenants of a Home Owners Association (HOA); however, many single family homes are also under the authority of a HOA. Additionally, there may be restrictions even if there is no HOA. A home that is located within a protection area, which is imposed by the county or locality, has land use restrictions that may prohibit building, additions and/or tree removal. If you would like to research land usage for a specific home, you can visit the Maryland-National Capital Park and Planning Commission in Silver Spring (the staff is friendly, helpful and knowledgeable).

A common belief is that maintenance costs are higher for singe family homes than townhomes; when comparing homes, it is important to examine costs for upgrades as well as monthly operation costs. Repairs and maintenance vary on the home’s materials and systems. Additional maintenance considerations include painting, roof replacement, landscaping as well as daily expenses that include heating and cooling.

Home buyers will be surprised this spring as homes come to market; they will be surprised by their home buying options as well as prices.

October 19, 2007November 23, 2021

Before you buy- First time home buyer fundamentals

by Dan Krell © 2007
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Don’t let your first time home buying experience be overwhelming. Before you plan your Sunday trip to open houses, it’s important to review the fundamentals and make sure you are going into your home purchase fully aware of the responsibility you are about to take on, as well as prepare you for the process and pitfalls that may come your way.

The first item on the list is to determine how much you can afford. Affordability is determined by your financial state and interest rates. Your financial state includes factors such as your income, debt, savings, and expenses. Interest rates impact on your ability to purchase a home because your monthly payment is based on the rate you lock into; the higher the rate, the higher your payment.

Once you know how much you can afford, make a housing budget. Making a housing budget can help you understand your expenses, which included utilities, maintenance, and other expenses such as cable and internet. Additionally, take into account any interest rate adjustment (if you have an adjustable rate mortgage) and increasing real estate taxes. Many first time home buyers get into trouble because they underestimate their monthly housing expenses, as well as not accounting for rising mortgage payments and real estate taxes.

As a first time homebuyer, you will want to be aware of any special programs that are available to you. There are many local home buyer programs that offer special financing and/or closing assistance through the county, the Housing Opportunities Commission, as well as through banks and organizations.

Talking to a lender can help you understand your credit and how much you can afford. You should compare lenders for interest rates and fees. Lender fees vary significantly and by choosing the right lender, you can possibly save several thousand dollars at settlement.

Knowing your rights as a home buyer can help you prevent problems that may occur. As a homebuyer, you are affected by federal and local fair housing laws, RESPA (Real Estate Settlement Procedures Act), Equal Credit Opportunity Act, Fair Credit Reporting Act, and the Truth in Lending Act. Your real estate agent should be aware of these laws and can help you understand them. You can get more information about these laws at the HUD website, HUD.gov.

As a first time home buyer it is important to know that you have the right to choose your service providers, such as real estate agent, lender, title company, insurance company, etc. Additionally, you have rights specific to obtaining a loan and credit, such as the right to a good faith estimate of settlement charges and interest rate and other disclosures. A list of these rights can be found at the HUD website (www.hud.gov/offices/hsg/sfh/res/resborwr.cfm).

Your next step will be to choose a real estate agent. It is recommended to interview several agents before choosing as your agent will be your trusted guide through the home buying process. A good real estate agent will know and protect your rights, as well as know what home buyer programs are available to you.

Finally, HUD recommends that first time home buyers attend housing counseling to assist in learning these and other fundamentals. It is clear that doing your homework and choosing the right professionals to assist you can make the difference in your home buying experience.

This column is not intended to provide nor should it be relied upon for legal and financial advice. This article was originally published in the Montgomery County Sentinel the week of July 9, 2007. Copyright © 2007 Dan Krell.

October 19, 2007November 23, 2021

Considerations in choosing a real estate agent

by Dan Krell
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So you’re thinking of moving. If you are going to buy and/or sell a home you may be thinking of hiring a real estate agent to assist you. If you have bought or sold a home in the past, you know that there are thousands of real estate agents to choose from.

Choosing a real estate agent should be an objective as well as subjective process. You want an agent with experience and expertise, but you also want to make sure they listen to your needs and are patient with you. Additionally, you want to feel comfortable enough to trust them.

Choosing the right real estate agent is important because the agent that is chosen to represent you will have a fiduciary responsibility to you. As many home buyers and sellers don’t know, a fiduciary is someone who acts as a custodian for your rights and/or assets. The fiduciary has a responsibility to act with honesty and integrity, as well as act in your best interest and not exert influence on you or pressure you for their own or others interests. So, if the agent seems impatient, pushy or desperate you may need to look elsewhere.

Some people advise that your first step in choosing a quality real estate agent is to choose a broker or real estate firm first. However, the quality if an agent is not dependant on the firm. The quality of real estate agents varies from agent to agent; real estate firms have very good agents as well as agents that are less than perfect.

Whether you are interviewing an agent that was recommended or one you found in the paper, you should ask many questions about their knowledge, experience and expertise. You should also ask them if and how long they have been licensed.

Ask where the agent is licensed; not all agents are licensed in all jurisdictions. If your intention is to look at homes in Maryland, Virginia, and DC, make sure the agent is licensed in all three jurisdictions. If you are only looking in Maryland then they only need to be licensed in Maryland.

Once you have determined where the real estate agent is licensed, you can get an idea of their experience by asking how long they have been licensed. Someone who just received their license may not be as experienced in negotiating as someone who has been licensed five or ten years. If you are considering a novice agent, make sure they have some type of mentor that is training them. If the agent does have mentor, meet and interview them as well.

Additionally, you may want to consider working with a real estate agent who is a Realtor®. A Realtor® is a member of the National Association of Realtors® (NAR) and follows the NAR code of ethics. It has been said that the NAR code of ethics exceeds the ethics requirements of many state laws.

Finding the right agent is a process much like home buying. Through interviewing real estate agents you can find out the agent’s professionalism, training, and knowledge base. Additionally, you can find out if the agent’s personality clicks with yours, as you will spend time together selling or buying your home.

August 21, 2007October 5, 2019

Why Litigate when you can Mediate?

by Dan Krell

You may find it odd that a Realtor is talking about mediation; after all I am not an attorney. Although a majority of real estate transactions close without incident, many are very happy endings indeed (no pun intended); disputes do arise.

Many disputes between home buyers and home sellers get resolved through normal lines of communication. However, communications can break down and a resolution far off.

If you do have a real estate dispute of any kind, please consult your attorney. But before you sue in court, discuss mediation with your attorney an alternative vehicle to resolve your dispute.

For those who don’t know, mediation is a process of bringing the parties together in an attempt to communicate differences and reach an agreement through a trained and neutral third party (the mediator). The mediator does not make judgment nor does the mediator pass any binding decisions. The mediator is trained in special techniques to facilitate the process of mediation.

The Maryland Association of Realtors (MAR) describes the benefits of mediation as follows (MDRealtor.org): mediation is faster than litigation, as litigation can take as long as several years for resolution while mediation can take as long as sixty days; mediation is less expensive than litigation as both parties split the cost and no one pays an excessive amount; mediation is non-adversarial and focuses on a win-win result, while litigation focuses on the disagreement and has a win-lose outcome; mediation results in an agreement that is mutually agreed upon by the parties;

Another benefit is that the parties who decide to pursue mediation retain the right to use other legal remedies. If mediation does not work the parties involved can pursue arbitration or litigation as if the mediation never took place.

Although mediation is not appropriate for every situation, common disputes that have been successfully resolved through mediation include repair and inspection issues, costs for repairs, missing fixtures, earnest money deposits, and claims of misrepresentation about property and appliance condition. Certainly, criminal allegations should be pursued by legal means not through mediation. Similarly, unethical behavior by Realtors should be referred to the real estate commission.

As a service to consumers, the MAR offers mediation as a means to resolve real estate disputes in Maryland. The MAR has established uniform procedural guidelines to maintain standardization and homogeneity in the process. These guidelines can be obtained through the MAR Mediation Service Provider, as indicated by the MAR.

Before mediation begins, the parties must have a written agreement to mediate. The agreement can be signed before or after disputes may arise. In fact, if you use the MAR purchase contract, there is a clause that states you agree to try mediation before litigation as means to resolve any dispute that arises from the transaction.

The next step is to submit the potential disputes to mediate and have a mediator selected. Although the mediator is selected by the mediation service, all parties involved must agree to the selection. All mediation sessions are typically held in the county where the dispute arose and are private and confidential.

I was once told that litigation results in unhappy parties regardless of the result. As a faster and inexpensive alternative, mediation is a means to resolve real estate related disputes agreeably.