Ask Our Broker With Peter G. Miller: Party Lines
A question arose recently on Facebook’s RealTown Real Estate Network that is too interesting to ignore. Sacramento TV station CBS13 reporter Drew Bollea found a home for sale but not to buyers who had voted for Donald Trump in the last presidential election.
The question on RealTown – a leading social network for real estate professionals – was this: is it discriminatory to refuse a purchase offer because of the buyer's political preferences?
Realtown members were clear that political affiliation is not covered under the federal Fair Housing Act.
“The Fair Housing Act,” explains HUD, “protects people from discrimination when they are renting, buying or securing financing for any housing. The prohibitions specifically cover discrimination because of race, color, national origin, religion, sex, disability and the presence of children.”
Political affiliation might not be on the federal list of protected classes but that doesn’t mean brokers would rush to take the listing.
Saul Klein, a San Diego real estate broker and RealTalk co-founder, explains that an issue could arise if a buyer, in addition to being a member of a given political party, is also a member of a protected class.
There are also marketing problems with the owner’s request.
First, as a country we have political differences. In the 2016 presidential election roughly 65.8 million people voted for Hillary Clinton while 63 million voted for Donald Trump. A homeowner who bans buyers from one party is essentially cutting off a large part of their potential market. Fewer buyers equals less demand, which can mean smaller purchase offers.
Second, many brokers would refuse to list the home because a political requirement in a real estate sale raises issues far outside such typical realty topics as mortgage rates, home marketing and comparable values. How does a broker ask a potential buyer about their political preferences? What if the buyer refuses to answer? Or is offended? Or didn’t vote? Must the purchaser sign a statement witnessed by a notary that outlines their political views?
Many brokers make a point of not discussing politics while on the job. They’re in the picture to assist buyers and sellers with their real estate needs and that’s it.
Selling a home is tough enough without introducing additional questions. Many people feel passionately about their political views but is a home sale the proper venue to debate such matters?
The alternative is to see a property transaction as an event where buyers and sellers each try to get the best prices and terms. As a seller, if you feel strongly about a particular issue, welcome all buyers, get the highest possible price and then donate to whatever cause, candidate or party you favor.
Peter G. Miller is author of "The Common-Sense Mortgage," (Kindle 2016). Have a question? Please write to peter@ctwfeatures.com.
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