Episode Transcript
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Speaker 1 (00:01):
A good afternoon again. I'm Andrea Coleman with the Black
Information Network at the Congressional Black Caucus Foundations fifty fourth
Annual Legislative Conference, and we're talking with Ashley Thomas, the
third president of the National Association of Real Estate Brokers.
That's on a completely different level. We're used to hearing
real estate agents, but we're going to talk on that
higher level this time and looking forward to the conversation.
(00:22):
Good afternoon, and welcome.
Speaker 2 (00:23):
Thank you very much. I'm very happy to be here.
Speaker 1 (00:25):
Yeah, now you've been actually participating in some of these
sessions at the ALC. Talk a little bit about what
you've been discussing and why it's important.
Speaker 2 (00:35):
Absolutely.
Speaker 3 (00:36):
So first let me just recognize the National Association real
Estate Brokers and may read we have a lot of
members that have come out to the ALC.
Speaker 2 (00:42):
Today and so we're very happy about that.
Speaker 3 (00:45):
Our organization was founded in nineteen forty seven on the
key principal of democracy in housing, where we advocate for
home ownership within the black community, and so we're very
happy to be a partner again this year and having panels.
So one of the panels that we did have yesterday,
which was great was just on appraisal bias, and so
that's obviously one of the barriers to home ownership when
(01:06):
we look at valuations. But outside of that, we just
pretty much have been here and support it for home
ownership throughout the event.
Speaker 2 (01:13):
That's really big.
Speaker 1 (01:14):
Talk a little bit if you will, Ashley, Can I
call you Ashley, I call you mister Thomas. I mean
I know you're broker, so you know, respect for that.
Talk a little bit though about the difference, and we
do want to get back to appraisal bias. But let's
start at the basics first. What's the difference between a
broker and a real estate agent?
Speaker 3 (01:32):
So brokers typically are owners, the managers of the company.
They have real estate agents that operate that report up
through them. Every state, however, does have a different definition
on how that looks. Some states only have brokers, some
states have agents and brokers.
Speaker 2 (01:47):
I'm from California. We have agents and brokers. Yeah, very good.
And it's quite the journey.
Speaker 1 (01:52):
I mean, even becoming a real estate agent, it's quite tedious.
I mean you've got to do a lot of studying
and past tests and so forth.
Speaker 2 (01:58):
How much more difficult is it to become a broker.
It's just another level.
Speaker 3 (02:02):
I would say, you typically aren't doing that until after
four years of being well versed in the industry. And again,
if you want to manage people, managing people is a
different process, right, So you have to decide if you
want to manage people. But it doesn't dictate knowledge, it
doesn't dictate professionalism.
Speaker 2 (02:19):
It's just a different tile, right.
Speaker 1 (02:20):
And how many black brokers do we have in a
huge I.
Speaker 3 (02:22):
Don't know how many black brokers do you know how
many we have here today? And so we continue to
champion our communities at many different levels.
Speaker 1 (02:31):
All right, let's get down to the nitty gritty here, right,
appraisal bias. Listen, Fairness in housing has always been an
issue for us in many, many ways and it continues
to be.
Speaker 2 (02:43):
Right.
Speaker 1 (02:44):
So, when you're talking about appraisal bias, what all does
that entel and how is it impacting the black community?
Speaker 3 (02:51):
So in twenty twenty, we saw the internet on fire
about appraisal bias. We saw consumers that had appraisals at
five hundred thousand then whitewashed their home and took all
the black artifacts out of it, and then the appraisal
came back doubled. Obviously, that was something that across the
country was having conversations every day about it, and that
(03:12):
seems to have phased the way. And so what we've
been doing as an organization is restarting that conversation, definitely
doing our advocacy around it. But historically, I think appraisal
bias has done been a little bit different in terms
of how we looked at We looked at as black
neighborhoods that were undervalue and so but really we're talking
(03:32):
about the future of the neighborhood.
Speaker 2 (03:34):
Right, So you have a.
Speaker 3 (03:35):
Black neighborhood where white people are moving into the neighborhood,
all of a sudden, it becomes more valuable. Right, So
we call that process gentrification, and we see that home
prices start.
Speaker 2 (03:46):
To elevate, right.
Speaker 3 (03:48):
And so if you're a black person that's in that
type of neighborhood, you actually benefit from some of the
valuations from that, but it shouldn't because white people find
value now. Right, Then we go into the other side,
where we have a white neighborhood that black people are
moving into. We call that process urbanization, and in that case,
we start to see values decrease and we start to
see white flight move from that neighborhood. So valuation on
(04:10):
the future is so important, But we find value in
our own.
Speaker 2 (04:14):
Neighborhoods and we have to continue doing a better job
of that.
Speaker 1 (04:17):
How do we monitor that as homeowners?
Speaker 3 (04:19):
I think that's our job is realtists, and that's why
you should never purchase or sell a home without having
a real tists attached to it that transaction because we
are the defenders of our community. We fight for We
review the reports to make sure that everything is well
and in line and in order. And so I think
that's the first step is use a realatists. The second
(04:40):
step is from a homeowner's perspective, is to become in
the know. What did your neighbor sell their property for?
Is there a model match down the street, what does
that look like? And what the valuation for that?
Speaker 1 (04:50):
So now you said find a real estate agent, right,
but I take it not all real estate agents operate
with the same heart and sensitivity to some of these
issues we're talking about. How do we identify those estate
agents and those people who can help us well.
Speaker 3 (05:02):
The greatest real estate agents that you can ever find
are located on NREP dot com, nar EB dot com
and that's you know, because we have an ethical standard
and things that we go through in terms of being
a member at our organization, So we are known as
real tists, not real tours. Again, we've been we've been
around since nineteen forty seven. We have a need to
(05:23):
still be here because red lining still exists. We have
cases a year old and that the current administration is
trying to vary.
Speaker 2 (05:30):
But we continue to fight for home owner ship.
Speaker 1 (05:32):
That's interesting that you bring that up because there was
an article in the New York Times right now that
was our last week talking specifically about some of the
hold up that's taking place at the Housing and Urban
Development Offices, and there are concerns that this may be
an attack on the Fairhousing Act. So we've had the
(05:53):
head of HUD say that DEI will be going away.
Speaker 2 (05:58):
You said that.
Speaker 1 (05:58):
Earlier this year. What is the current state of the
Fair Housing Act and what happens if any of that
legislation that dealt with some of these I guess prejudices
and issues that we're talking about. If that legislation goes
away or that law goes away, what.
Speaker 2 (06:17):
Does that mean for us?
Speaker 3 (06:18):
You know, Historically I like to look at it from
this perspective. So Black people in America have never been
the majority, not one time in history have we been
the majority. But we've always been outspoken and we stood
up for truth, and so during this time, that's what
we need to do.
Speaker 2 (06:35):
It's very hard to make moves.
Speaker 3 (06:37):
That impact the community if the community is standing up
saying that we don't accept it, and so I would
encourage that. The second thing that we're doing as an organization.
We did have a meeting at HUDs office this week,
and I think that the dialogue has to continue. We
cannot just lay down and say, oh, well, the administration
is different, maybe they're not as inviting. We want to
give them an opportunity to work with us, and we
(06:58):
want to work with you as well, because at the
end of the day, increasing black wealth through home ownership
is our main focus.
Speaker 2 (07:04):
And that's what we do on a daily basis.
Speaker 1 (07:06):
So talk about the state of Black America right now.
We are seeing unemployment rates. As Congresswoman Aleanna Presley just mentioned,
the current unemployment rate among black women in particular is
extremely high. We also have seen reports recently that says
black ownership Black women ownership is on the decline. How
(07:27):
and how do we get ahead of these numbers? How
do we retrack, reset, regroup to get back into this game.
Speaker 3 (07:34):
I think attending here is obviously a great point. I've
been to many of the classes and engaging with other people.
But as industry leaders and community leaders, we just need
to get together and work on our economic structure in
terms of keeping money within our communities. I have to
support your business, you have to support my business, and
then that way we can continue the economics. So that's
(07:54):
why you know, we'll always say you find your best
real estate agent on arap dot com because this is
the community in which we work for. So I think
that that's part of it. The other part of it
is we have to get involved in policy earlier in
the process. By the time it passes, there's no more
room for comment, right, and so our comments have to
be done at the inception when the policy is being created,
(08:15):
and I'll always have to be heard.
Speaker 2 (08:16):
All right, let me pick your brain a little bit.
Speaker 1 (08:18):
When's the best time, some tips, some guidance, some advice
on how you go about purchasing a home and making
sure that it's the right decision at that time for you.
Speaker 3 (08:29):
Well, you know, the old cliche is the best time
to buy a home as always today, right, And we
will always say that, you know, if we go back
and I love data, So if we go back and
look at data for the last fifty years, there's never
been a window of five years where you purchase a
property and five years later it was worth less.
Speaker 2 (08:46):
And that's across the country on an average. Right.
Speaker 3 (08:48):
So even when we've had the downmarket with the foreclosure
mark crisis, we have the savings and loans.
Speaker 2 (08:54):
Right, We've had COVID, We've had all these things.
Speaker 3 (08:56):
When you take any time point for five year periodty
is always a praise for more. That's one on the
ownership side. On the rental side, you can take the
exact same five year period and you can guarantee that
the rent has increased over that five year period. So
we really push simple economics. If you get a thirty
year fixed rate a third on a mortgage, your payment
(09:17):
is going to be the same in ten years, barring
any changes from insurance or taxes, and insurance has been
a big issue for us lately.
Speaker 1 (09:24):
Yeah, are there certain indicators to monitor, Like we know
the Feds just lowered interest rates for the first time
in months and after some pressure from the President as well.
Do those kind of moves help or hurt or in
any way kind of give I guess influence a person's
decision on whether they should buy or not.
Speaker 2 (09:43):
I mean, lower rates always influence intention.
Speaker 3 (09:47):
It always motivation for people to get off the sideline.
For us, we are concerned about affordability. That's a big
thing for us. So when the lower the rates go,
the lower the payment is. But then competition rises, so
our focus is less on rates and more on inventory.
If there's not enough inventory in the marketplace to offset
the decrease of rates, then we're going to.
Speaker 2 (10:07):
Have a problem.
Speaker 3 (10:07):
We're going to go back into COVID when people were
bidding fifty sixty thousand dollars over list price, and so
that poses a challenge because we're not competitive in those markets.
Speaker 2 (10:16):
Right.
Speaker 3 (10:16):
And then just to add, as we look at the
barriers to homeownership, oftentimes it is very cliche to say,
you know what, I was not able to purchase a
home because of income debt to income ratio or credit,
and that is placing the blame.
Speaker 2 (10:30):
On the consumer.
Speaker 3 (10:32):
Our job as realtis is we look at the unseen barriers,
right redlining is an.
Speaker 2 (10:37):
Issue still today.
Speaker 3 (10:39):
Appraisal bias is an issue, algorithmic bias as we move
more into AI and technology, those things are happening because
who's monitoring that right, and so we are at the
front line of this fight.
Speaker 2 (10:50):
We want to make sure that everything that's new is
fair and equitable. Yeah, that's very good.
Speaker 1 (10:56):
Any words of advice you'd like to share with Love
listeners today regarding the current economic climate and where home
ownership stands in America, in particular for Black America.
Speaker 2 (11:05):
Yeah, absolutely, I would say so.
Speaker 3 (11:07):
White home ownership stands at seventy four percent today, Black
home ownership circling around forty four percent, and both of
those moved, but we're consistently at a thirty percent gap.
And it's not because we're uneducated or don't want to
purchase a home. We have to make sure that we
prioritize that as we move forward, and that's what we
want to do. So the number one thing that you
(11:27):
can do is work with nay Reb real tists.
Speaker 2 (11:30):
We have people from all over the country.
Speaker 3 (11:33):
You can go on to our website and find a
real test in your local area who's going to walk
you through the entire process, and I think that's where
we get We have a lot of fear in our community.
Speaker 2 (11:42):
Many generations zine they.
Speaker 3 (11:44):
Saw that their mother and father lost their home during
the foreclosure crisis, and now they're not apt to want
to go do that. However, we are building wealth, and
we're building wealth through the number one engine in America,
which is home ownership.
Speaker 2 (11:55):
Wow.
Speaker 1 (11:56):
Very good well Ashley Thomas, the third president of National
Association of Real Estate Brokers nay REB again, that's nay
Reb dot org.
Speaker 2 (12:05):
Org dot dot com, dot n A r e B dot.
Speaker 1 (12:07):
Com, na r e B dot com. We thank you
so much for your expertise and for your time and
your leadership and this wonderful cheering section that's brought to
that brought to the stage. I'm Andrea Coleman with the
Black Information Network at the Congressional Blackcocus Foundations fifty fourth
Annual Legislative Conference, and we have been talking with Ashley Thomas,
the third president again of the National Association of Real
(12:29):
Estate Brokers, and we will have more conversations with our
congressional leaders and community leaders coming up.
Speaker 2 (12:34):
Thank you.