Bigger. Better. Bolder. Inman Connect is heading to San Diego. Join thousands of real estate pros, connect with the power of the Inman Community, and gain insights from hundreds of leading minds shaping the industry. If you’re ready to grow your business and invest in yourself, this is where you need to be. Go BIG in San Diego!
In modern times, many people don’t consider how real estate began in America. History tells us that land was taken from Native Americans by force and war. Many buildings, including some of the most iconic in the U.S., were built with slave labor.
America was founded on the principles of freedom, but also the suppression of minorities. This profound contradiction remains unresolved centuries later in a country that is deeply divided over the topic of diversity and equality.
Science tells us we are all one human race despite skin-deep differences in appearance. Genetically, all humans are nearly identical, with equal intellectual and emotional capacities. Our lives should be valued equally. Yet, opportunities in life are unequal.
The bigotry and apathy in our country’s founding persist as systemic racism today. The need for fair housing and equality remains as strong as ever.
Historical racism in real estate
United is our country’s namesake, but we are incredibly divided. Racism nearly destroyed America during the Civil War, and many would argue it is still eroding our country today.
Even after slavery was abolished in 1865 through a constitutional amendment, Black Americans were systematically oppressed. In 1926, the U.S. Supreme Court upheld racially restrictive covenants in property deeds, prohibiting sales or occupancy based on race, ethnicity or religion.
The court justified this as protecting “residential districts against deterioration of character.” This ruling stood until the Fair Housing Act of 1968.
Established in 1934, the Federal Housing Administration (FHA) institutionalized redlining, a practice that designated minority neighborhoods as high risk for mortgage lending. The FHA’s Underwriting Manual explicitly recommended the “prohibition of the occupancy of properties except by the race for which they are intended.”
This led to the systematic denial of mortgages to Black Americans and other minorities, severely restricting their ability to purchase homes and build wealth. It also ensured neighborhood segregation for generations.
Even the National Association of Realtors (NAR) played a significant role in enforcing discriminatory housing practices. In 1924, NAR’s Code of Ethics stated that Realtors “should never be instrumental in introducing into a neighborhood … members of any race or nationality, or any individuals whose presence will clearly be detrimental to property values.” This clause remained until 1974.
Furthermore, NAR actively opposed the Fair Housing Act in 1968. NAR formally apologized less than five years ago, in November 2020. The apology came decades late and in the wrong century, evidence of how slowly progress is being made toward equality.
Current bigotry in real estate
The Fair Housing Act of 1968 was a landmark federal law prohibiting discrimination in housing based on race, color, religion, sex, national origin, disability and familial status. The laws changed, but it did not change people’s hearts.
The baby boomers who control U.S. politics today grew up in a segregated world and were taught discrimination by their parents and society. Fair housing matters, but it only works when people embrace it.
Minorities experience more housing discrimination and lower homeownership rates. It’s evidence that the legal protections aren’t working as intended — because many people are still racist and the United States was built for white men.
Today, politicians avoid openly discriminating against protected classes like race, as doing so would be political suicide. Instead, they target other groups with fewer legal protections.
The LGBTQ+ community, for example, is a frequent target. The hatred directed at LGBTQ+ individuals in politics today mirrors the historical hatred toward racial minorities. Currently, there are no federal laws protecting against discrimination based on sexual orientation or gender identity, and only 23 states have passed legal protections for both.
Hateful politicians are strategic about whom they hate publicly versus privately. Beware of any hateful politician if you aren’t in the majority — they might secretly hate you, too.
Politicians also use coded language to alienate minority groups. Diversity, Equity and Inclusion (DEI) programs have been a cornerstone of housing initiatives to help minorities overcome generational disadvantages caused by systemic racism. These programs are crucial to correcting the injustices baked into past and present legislation.
Anti-DEI ideology presumes that the system is not rigged for the majority and that minorities should not have any advantages — which is completely untrue. Even with DEI programs, minorities are still underserved and disadvantaged. Anti-DEI rhetoric is outright racism and an attempt to maintain power over minorities.
Government agencies have focused heavily on DEI programs for years. Department of Housing and Urban Development (HUD), Fannie Mae, Freddie Mac and the Federal Housing Administration (FHA) have all allocated significant budgets toward eliminating housing discrimination and promoting minority homeownership.
Under theBiden-Harris Administration, Black and Latino homeownership rates increased by 13 percent and 7.5 percent, respectively, from 2019 to 2023, narrowing the homeownership gap. Now, HUD faces the challenge of cutting essential staff members and eliminating their positions because of the Department of Government Efficiency, aka DOGE. The Trump administration proposed significant staffing cuts to HUD, targeting employees involved in disaster recovery, rental subsidies, discrimination investigations and support for first-time homebuyers.
This proposal aimed to halve HUD’s workforce, eliminating 4,000 jobs and affecting more than a dozen programs, raising concerns among housing advocates about disruptions to HUD’s critical functions. It’s estimated that 77 percent of staff will be laid off at the Office of Fair Housing and Equal Opportunity, which enforces the Fair Housing Act at the federal level.
Housing is only one component in the fight for equality. There are many other frontlines where minorities are being actively disadvantaged. Systemic discrimination persists in various forms, including school districting, gentrification, politicalgerrymandering, harsher criminal sentences and employment discrimination.
This doesn’t account for the fact that some people vocally harass minorities for no reason. While Black Americans often bear the brunt of bigotry, other groups also face targeted discrimination based on current events.
Today, transgender people are villainized; during the COVID-19 pandemic, it was Asians; after the Sept. 11 attacks, it was anyone of Middle Eastern descent. Hateful people will always find someone to hate. If you turn on the news, it’s apparent how much hate exists in America.
The harsh reality
From its origins to modern times, bigotry has been ingrained in political discourse and American culture. If you don’t see the problem, it may be because you benefit from privilege, most likely as a white, heterosexual individual.
As we move into the future, it would be assumed that civic rights would prosper. Unfortunately, they are deteriorating.
The United States was recently put on a watchlist for declining civil liberties, alongside countries like the Democratic Republic of Congo, Pakistan and Serbia.
The problem of systemic racism in America is more significant than any of us individually, but with education and personal action, we can still take a personal stance against it.
We can wholeheartedly embrace minorities on their real estate journey.
We can vote to protect their interests.
We can promise not to judge anyone for being different from us.
We can embrace diversity because it offers more in life than if everyone were the same.
Let’s face the facts: Love feels better than hate. It’s time to embrace compassion because it’s better for us and others.
America would not exist without the theft of land and the exploitation of minorities. The least we can do is show empathy toward those who have been disadvantaged for generations.
The last thing we should allow is to stand by and watch our government suppress, deny and oppress minority groups further.
This is not a political opinion but a call for love and justice. If Americans genuinely believe that “all men people are created equal,” we must actively accept and support each other to make it a reality.
Sean Frank is the founder and CEO of Mainframe Real Estate in Florida. Connect with him on Instagram and LinkedIn.
The NBA superstar’s Highland Park estate at 2700 Point Drive was first listed for $29 million in 2012. By 2014, the price had dropped to $16 million, and it is now on the market for $14.8 million.
Whether it’s refining your business model, mastering new technologies, or discovering strategies to capitalize on the next market surge, Inman Connect New York will prepare you to take bold steps forward. The Next Chapter is about to begin. Be part of it. Join us and thousands of real estate leaders Jan. 22-24, 2025.
The future of Michael Jordan’s $14.8 million Chicago mansion remains a toss up after sitting on the market for 12 years, despite drastic price reductions, The Wall Street Journal reported on Thursday.
The NBA superstar’s Highland Park estate at 2700 Point Drive was first listed for $29 million in 2012. By 2014, the price had dropped to $16 million, and it is now on the market for $14.8 million.
Katherine Malkin of Compass is representing the listing.
According to The WSJ, the 56,000-square-foot mansion still reflects Jordan’s personal touch, and there are no plans of that changing, despite his desire to sell.
“We haven’t really talked about that because it’s part of the draw. We don’t look at that as being a hindrance,” Malkin told The Wall Street Journal.
In 1994, Jordan spent $50 million building the property, which includes nine bedrooms, 15 full bathrooms, a home theater, a putting green and doors from the Playboy Mansion. Custom features include a wrought iron gate adorned with Jordan’s iconic number 23, a basketball court with his and his children’s names, and a cigar room.
Compass | Regulation-sized basketball court
While the listing has attracted attention, it’s mostly from fans rather than serious buyers.
Fans lacking the necessary funds have contacted Malkin, requesting tours and special discounts on the property. Last year, a break-in attempt occurred despite the estate’s full-time security.
Jordan’s team remains patient, with no intention of lowering the price further. The property was even pulled from a 2013 auction when bids fell short of a minimum reserve price of $13 million.
Compass | Sitting area
Real estate agent Kofi Nartey previously attempted to lure buyers with creative marketing, including a promise of every Air Jordan sneaker model.
Numerous proposals to transform the property into a museum or conference center have surfaced but none have materialized, due in part to zoning issues, according to Highland Park City Manager Ghida S. Neukirch.
Malkin attributes the lack of residential interest to its location, two miles inland from Lake Michigan where high-end buyers prefer to live.
“Most people who are spending that kind of money in the Chicago area want to live on the lake,” she said. “He chose to not live on the lake because they wanted privacy.”
According to Malkin, prospective buyers who tour the house must sign a nondisclosure agreement. Dozens of qualified buyers have gone through in the past few years, she added, but no deals were made.
Jordan, who bought the house in 1991 and assumed full ownership after his 2006 divorce, is selling because his children are grown, and he splits his time between homes in North Carolina and Florida, he previously told The Wall Street Journal.
Whether it’s refining your business model, mastering new technologies, or discovering strategies to capitalize on the next market surge, Inman Connect New York will prepare you to take bold steps forward. The Next Chapter is about to begin. Be part of it. Join us and thousands of real estate leaders Jan. 22-24, 2025.
There’s a lot of confusion around the particulars of the National Association of Realtors (NAR) commission lawsuit settlement and the resulting business practice changes. Compliance expert Summer Goralik is here to help clear up some of the looming questions so that we can move forward together as an industry.
Can I say “call for buyer’s agent compensation” in the private remarks?
Compliance expert answer
This question caught my attention for two key reasons. First, it can be answered in just one word. Second, while the answer is straightforward, it highlights a deeper, more complex issue regarding compensation offers in today’s real estate industry. Let’s break it down.
To begin with, here’s a quick recap of recent events. The practice modifications resulting from the National Association of Realtors (NAR) settlement took effect on Aug. 17.
By now, all Realtors and multiple listing service (MLS) participants should be adapting to this new landscape, which emphasizes the decoupling of real estate commissions and a more consumer-focused approach. Fully embracing these changes is essential to avoid future litigation and antitrust issues.
Now, regarding the question of whether a licensee can input “call for buyer’s agent compensation” in the private remarks of a listing on the MLS, the answer, in my opinion, is an unequivocal no.
Although I’m not an attorney, here’s why I strongly advise against this practice:
NAR settlement compliance: The NAR settlement prohibits unilateral offers of compensation through the MLS. As a result, offers of compensation cannot be advertised on, or facilitated through, the MLS.
MLS policy and enforcement: MLS platforms nationwide have been removing commission fields and modifying their rules to comply with this new requirement. For example, the California Regional MLS (CRMLS) has modified or enacted rules in response to the NAR settlement, including Rule 7.15. This rule explicitly states that a listing broker cannot use the MLS to offer or convey any amount or willingness to share a commission with a buyer broker, nor can a seller offer a specific compensation amount to a buyer broker.
Given this, any mention of agent compensation in the private remarks would likely be flagged by MLS enforcement, potentially leading to fines. It’s an easy target for MLS compliance teams, and such a non-compliant listing would almost certainly be reported by other practitioners, especially in this heightened regulatory environment.
It’s also important to note that peer enforcement may increase during these early months as agents and brokers learn to navigate and apply these significant changes to their operations. The interpretation of these rule changes, as seen in the proposed activity discussed in this week’s question, is where we may encounter a range of questionable conduct.
Broker accountability: If an agent is found to be non-compliant, their responsible broker will likely be displeased, especially if policies and procedures were established to guide agents through this transition. Responsible brokers are expected to oversee their agents to ensure compliance, and disciplinary measures may be in place for agents who fail to follow the rules.
Now that I have answered the primary question, I will explore the underlying issue that can’t be ignored.
Admittedly, when I think about this moment of critical change and all the ways agents might accidentally get it wrong or react improperly, the private remarks on the MLS aren’t the issues that keep me up at night. Blame it on my compliance background, but I tend to focus on the more serious aspects of this question.
The real issue isn’t just whether you can advertise buyer agent compensation in MLS remarks — it’s whether you should be advertising offers of compensation at all.
According to NAR’s frequently asked questions (FAQs) available on its website, offers of compensation, including cooperative compensation, aren’t outlawed, but they are prohibited from being displayed or facilitated on the MLS. Theoretically, this leaves some leeway for agents and brokers to advertise compensation through other channels, such as websites, signage and social media.
However, if you follow the logical path — or what some might call a “rabbit hole” — that this question leads us down, there are broader implications to consider.
Despite NAR’s guidance that cooperative compensation isn’t illegal, there are strong warnings and narratives advising against it.
For example, some state associations initially revised their forms to remove all references to compensation tied to the MLS but have since gone further by removing broker-to-broker compensation altogether. At least, that was the case in California.
Complicating matters further, consumer watchdog groups like Consumer Advocates in American Real Estate (CAARE) offer advice that differs from NAR’s. Its website provides guidance and suggestions for both sellers and buyers in the post-NAR settlement era.
Not only do they argue against cooperative compensation, labeling it as collusion, but they also suggest that sellers should not offer compensation to buyer brokers upfront, as it can artificially inflate fees. Instead, they recommend negotiating these terms during the offer process and emphasize that offering compensation directly to buyer brokers may not be in the seller’s best interest.
Similarly, some leaders in the real estate industry argue that advertising any kind of buyer agent compensation or concessions in advance of offers is actually a disservice to the homeseller and works against an agent’s fiduciary duty owed to their principal.
As someone with a background in real estate compliance, I can’t help but think about the larger legal concerns that even simple questions can raise. Whether that’s a talent or a curse, I’m not sure.
Although I don’t have all the answers, I am certain that practitioners will need to dig deeper, expose the more challenging questions, and by extension, address the most paramount compliance concerns. Agents must work closely with their responsible brokers, legal counsel, and trusted advisors to implement these practice changes and ideally avoid crossing the line into regulatory trouble or litigation.
Part of my ongoing wish list for the industry is clear, consistent guidance that aligns with the standards set by the United States Department of Justice and watchdog organizations. The sooner agents receive uniform direction, the better it will be for everyone involved.
I believe that agents are committed to doing the right thing, but their success depends on having explicit instructions on how to get it done right, as well as clarity about prohibitive behavior that could result in compliance issues or legal risks.
Editor’s note: Licensed real estate agents should always check with their responsible brokers for guidance, direction and policy regarding the new practice changes, and licensed real estate brokers would be wise to consult with a licensed attorney for legal clarification and support.
The opinions, suggestions or recommendations contained in this discussion are based on Summer Goralik’s experience working for, and knowledge of the laws enforced by, the California Department of Real Estate and must not be considered legal advice or relied upon as legal advice. You should consult with your brokerage, and/or appropriate legal counsel in your jurisdiction, for further clarification.
Find out what tech expert Craig Rowe thinks about Proptexx, an application that allows buyers to instantly remodel a room with AI-based interior design tools.
Inman Connect is moving from Las Vegas to San Diego in 2025 and it’ll be bigger, better, and bolder than ever before. Join us for Inman Connect San Diego on July 30-Aug. 1, 2025 with the brightest minds in real estate to shape the future of the industry. Reserve your spot today for an exclusive discount.
Are you receiving Inman’s Agent Edge? Make sure you’re subscribed for the latest on real estate technology from Inman’s expert Craig Rowe.
Proptexx is an AI listing visualization solution.
Platforms: Browser
Ideal for: Sellers, listing agents
Top selling points:
In-browser rendering window
Before and after slider UX
Intuitive, lightweight setup
Multiple downline benefits
NAR Reach member
Top concern:
There’s a lot of competition in the virtual rendering and staging space.
What you should know
Proptexx may be new to you, but the company has left footprints in Europe that help it gain traction as it pitches its in-search room design applet.
An interactive pop-up that engages the user to compare the current state of a listing’s interior with a number of virtual makeovers is the core value proposition here.
A slider reveals the new look, which can come from a series of design themes selected from a drop-down menu, and the user can choose to “like” or “dislike” each option. It can work in furnished and unfurnished rooms.
Proptexx requires a single line of API code to be installed, so access to the website’s content management system will be necessary, which should be simple for marketing staff, but I know that a number of brokerages outsource their website administration.
There’s a distinct advantage to Proptexx’s execution, and that it’s not overwhelming the user’s search experience. As I mentioned in the above highlights list, it’s lightweight and unobtrusive.
While it is a feature of the software, I like that it doesn’t push too hard on post-makeover valuations, and the rapid rendering ensures the buyer is aware that it’s merely a potential look for the room. At least for now, it’s not trying to be anything other than a tool for buyers to understand what their new home could look like.
It creates exterior sky renderings, de-clutters, handles landscaping updates, repairs siding and generally tackles most of what you’ve seen its competitors address.
Proptexx serves as a clever way to keep buyers browsing, something everyone knows brokerages need to stay visible amidst the ever-increasing visibility and reach of legacy search portals. It’s best paired with other forms of lead capture and calls-to-action, and in that respect, I’d like to see Proptexx actively keep its users up-to-date with how often the tool is used as an impetus for an agent to reach out.
I asked them about that, and a user stats dashboard is in the works, as is an update that will allow buyers to maintain a history of previous home visits. Look for it later this fall.
Proptexx offers metrics on appraisal complexity and home condition and encourages buyers to search room by room, an emerging trend in home search thanks to the onset of computer vision, a form of AI that reads and processes photo content.
In total, the company has users in 62 countries. And if your website is built/run by BoldTrail or rests on a legacy BoomTown site, it’ll be ready for Proptexx. If you’re an Exit Realty agent, you, too, have access to it (in case you were unaware).
Still, among Proptexx’s toolbox, I’d reach for the staging widget as a differentiator because it’s a buyer tool, a category not being addressed as often as I’d like to see.
I was told the software has processed up to 1.2 million images in a 24-hour period and around 400,000 renderings on average each day. That’s a lot of data. The company isn’t yet capitalizing on that, which it calls “exhaust.”
They’re aware of its value, and I got the sense they’re poking around revenue models for it. But I understand not wanting to move in that direction quite yet, as the app’s value is in its impressively quick rendering and simple user experience and that’s an already crowded field.
Instead of leveraging data for hard sales insights, it could be better used for potential retail partners and service providers.
Its deployment at an open house would be cool, too. Touring buyers could access a tablet iteration to be even more immersed in a room’s potential. It’s also a great option for landlords looking to turn apartments with an “apply now” button and listing agents needing to get a listing agreement signed.
Conceptually, you’ve seen this before, as BoxBrownie and others have been digitally re-rendering rooms and houses and greening lawns for years. Compass Lens offered the single-screen before and after slider years ago — but — what stands out to me is the in-search, consumer-first delivery and packaging, characteristics I think will soon be emulated by the bigger players.
It would be very cool if they found a way to let buyers snap a pic of any room in any house in the app and do it right there, in real-time. In time, I guess.
Until then, Proptexx can still make your website better than it likely is today.
Have a technology product you would like to discuss? Email Craig Rowe
Craig C. Rowe started in commercial real estate at the dawn of the dot-com boom, helping an array of commercial real estate companies fortify their online presence and analyze internal software decisions. He now helps agents and proptechs with technology and partnership decisions and lends his expertise to Inman to review and report on the people and products inciting industry change.
Wright has served as NAR’s interim CEO since November after she replaced Bob Goldberg. She was instantly thrust into leading an organization in turmoil.
Whether it’s refining your business model, mastering new technologies, or discovering strategies to capitalize on the next market surge, Inman Connect New York will prepare you to take bold steps forward. The Next Chapter is about to begin. Be part of it. Join us and thousands of real estate leaders Jan. 22-24, 2025.
The National Association of Realtors on Monday named Nykia Wright its full-time chief executive officer, more than nine months after she took over in an interim capacity.
Wright is now the 117-year-old organization’s 13th CEO and the first woman to serve in the role.
Wright was first chosen to lead the 1.5 million-member trade association two days after a jury issued a verdict against NAR and other major real estate players in the landmark Sitzer | Burnett decision that sent the industry into disarray.
Wright was head of the organization while it brokered a major settlement agreement with homeseller plaintiffs, as NAR agreed to pay $418 million and enact sweeping changes that took effect over the weekend.
NAR hadn’t publicly put an end date on Wright’s interim tenure, saying only that she would serve in the role while the organization conducted a nationwide search for a permanent replacement. NAR President Kevin Sears said in April that he asked Wright to extend her contract and stay on as interim CEO through the end of the year.
On Monday, NAR made it official that Wright would remain in the role.
“I am thrilled Nykia is staying on board to lead us through this time of transformation,” Sears said in a statement. “She has been instrumental in leading us up to this point, and her unwavering commitment to our members makes her the ideal steward for guiding our association through the evolving real estate landscape.”
Wright took the reins from Bob Goldberg, who served from August 2017 until he retired in November 2023. Goldberg’s tenure followed that of Dale Stinton, who had the role from 2005 through 2017.
Wright was thrust into an ongoing tumult that included mounting legal challenges, scrutiny from federal regulators and a simmering staff mutiny.
When she joined NAR in November, the organization had been publicly saying it would appeal the Sitzer | Burnett jury verdict. Financial analysts predicted that NAR’s core membership faced challenges that would lead many of them to abandon the real estate profession. Members began openly asking whether the Realtor brand had been ruined for good, and a competing association began to take shape.
Wright said in a recent interview that her extensive business experience prepared her to act as a steady hand through major disruption.
She led the Chicago Sun-Times when it became one of the few major newsrooms to transition into a nonprofit entity.
In her interim role, NAR said Wright has been guiding the implementation of a group of members that was tasked with improving the culture within the organization.
In an interview last week, Wright called on disengaged members to come back and share their voices with the organization.
“There’s a saying, ‘listen to the whispers so you don’t have to hear the screams,’” Wright said. “So the whispers of people wanting to leave is where we put our head on a swivel, get out there and start figuring out how we can bring those people back into the fold.
“When people are leaning out right now, it concerns me a little bit because their voice is not part of a future solution,” Wright said. “Being in business for yourself but not by yourself, when you leave the association, I consider [leaning out] going into the ‘by yourself’ type of box. And I think that we are truly stronger together, and we just have to continue to prove that.”
