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Implications of Local Lawsuit Could Exacerbate Racial Homeownership Gap

By Nate Johnson The rate of homeownership in the Black community hovers around 45%, a stark contrast to nearly 75% for White households. There are lawsuits, including a current federal case, that could make this gulf even greater. Strong, dynamic local real estate marketplaces are a cornerstone of community development and economic growth. Local broker marketplaces […]
The post Implications of Local Lawsuit Could Exacerbate Racial Homeownership Gap first appeared on BlackPressUSA.

Published

3 years ago

October 28, 2023

Chicago Defender Staff

By Nate Johnson

The rate of homeownership in the Black community hovers around 45%, a stark contrast to nearly 75% for White households. There are lawsuits, including a current federal case, that could make this gulf even greater. Strong, dynamic local real estate marketplaces are a cornerstone of community development and economic growth. Local broker marketplaces – in which real estate agents share all listings openly and transparently with all other agents – help foster healthy competition.

Meanwhile, compensation rules that allow a home buyer’s real estate agent to be paid out of the proceeds from the home sale – instead of out of the buyer’s pocket upfront – help expand access to homeownership and increase the pool of buyers for sellers’ homes.

However, the pending lawsuits could upend these vital local marketplaces. The suits seek to require buyers to pay for the services of their real estate agent directly, rather than having the buyer’s agent fee paid by the seller’s agent at the time of closing. If successful, such a verdict would significantly increase the transaction costs of buying a home – with major repercussions for local economies.

When the commission is shared between the seller’s broker and the broker who brings the home buyer, it gives first-time and low-and middle-income buyers a better shot at affording a home. If buyers had to pay the agent themselves, it would make it harder for many, especially first-time, minority and low/middle-income buyers, to afford a home because they would need more money upfront for the down payment, closing costs and agent fees.

Why it matters

Today, at a time when current high mortgage rates and increasing home prices are keeping aspiring homebuyers on the sidelines, additional out-of-pocket fees would only push homeownership further out of reach for many. If our commission model were to significantly change and buyers were forced to begin paying their agent out-of-pocket, it would create an additional barrier to homeownership for Black, first-time homebuyers who may already struggle to afford a down payment, ultimately worsening the racial homeownership gap across America.

Legal implications and the impact on Black, first-time homebuyers

Black first-time homebuyers have a 50% chance of being a first-time, first-generation homebuyers. This means that they may not have family and friends to rely on for homeownership advice. These buyers critically need a real estate agent to help them navigate the homebuying process since their parents may not be able to offer financial assistance or guidance. Unfortunately, if the lawsuits are successful for the plaintiffs, Black homebuyers will be the people who are most vulnerable to not having representation throughout the homebuying process.

Requiring buyers to pay their agent out-of-pocket would require an estimated $6,765 in additional assets to purchase a $250,000 home. The burden of this commission payment in addition to a down payment will only push homeownership further out of reach for income-restrained buyers and discourage them from seeking professional representation due to the added cost of working with a real estate agent.

At the crux of the lawsuit, plaintiffs argue that because listed-for-sale homes are publicly available online, buyers don’t need a real estate agent, which is a shortsighted opinion. Anyone who has purchased a home for the first time knows it often isn’t a straightforward undertaking – things don’t always appear as they seem – and the process can be overwhelming without support.

There is a lot more that goes into purchasing a home than finding a property you like, and it is one of the most significant – if not the greatest – financial decisions of one’s lifetime. That is why it’s crucial to have professional representation.

History shows that consumers who do not have professional representation always suffer the most. Looking back at the 2008 recession, people of color were disproportionately affected, in part due to lenders who offered predatory loans. Predatory lenders specifically targeted these communities because they were more likely to not have professional representation.

Many people received predatory loan products that they did not need, which ultimately led to more foreclosures and a decline in homeownership. If history were to repeat itself and more people choose to forgo professional representation due to commission fees, we could be looking at a similar outcome in the future.

Worst Case Scenario

So, what’s the worst that could happen? Well, a lot. If the trial verdict results in homebuyers having to pay commissions out-of-pocket, it would significantly increase the transaction costs of buying a home – with major repercussions for local economies:

Income-restrained buyers will be more likely to forgo professional representation when making the biggest financial decision of their lives, setting them up for failure.
The rate of homeownership in the Black community will remain stagnant or even worse, it will decline.
Significantly increasing the up-front transaction costs of buying a home would deter some potential buyers and slow the pace of home sales, at a time when higher interest rates have already chilled the market.
Fewer home sales, which would hurt demand for local businesses adjacent to home buying: appraisers, lenders, home inspectors, contractors and service providers, home improvement stores, and others.

The magnitude of this trial and the devastating impact it could have on aspiring homebuyers cannot be understated. If the plaintiffs were to win, the greater economy would be largely impacted and further divide the racial wealth gap in America.

NAR data shows that significantly fewer low-income households and households of color own their home and are able to build wealth compared to other income and racial/ethnic groups. There should be no reason why we adopt compensation rules that would further exacerbate this issue.

The post Implications of Local Lawsuit Could Exacerbate Racial Homeownership Gap appeared first on Chicago Defender.

The post Implications of Local Lawsuit Could Exacerbate Racial Homeownership Gap first appeared on BlackPressUSA.

Chicago Defender Staff

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Smooth Ride! Car Suspension & Comfort Tested #shorts

Smooth suspension meets surprisingly spacious legroom. Experience true comfort on any road!

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Oakland Post

Car suspension test demonstrating a smooth ride, comfort features, and handling on various terrains.

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61 years since Selma, Houston leaders say the bridge remains to be crossed

61 years after Selma, Houston leaders say the fight for equality continues. The issues that sparked the marches still impact Black Americans today.

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Oakland Post

Houston leaders discuss the ongoing struggle for civil rights 61 years after Selma, emphasizing the need for continued action.

It has been 61 years since the Selma marches. But political leaders in Houston say that the issues protesters were marching for still plague the lives of Black Americans.

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Here is what you need to know about finding unique white elephant gift ideas that everyone wants to steal

The best white elephant gift ideas are funny enough to get a reaction but useful enough that people actually want to steal them. Look for gifts with a surprise factor, broad appeal, an inside joke, and just enough personality to spark some friendly competition. The wrapping paper comes off, the room goes quiet for half […]

Published

1 month ago

October 4, 2026

Oakland Post

The best white elephant gift ideas are funny enough to get a reaction but useful enough that people actually want to steal them. Look for gifts with a surprise factor, broad appeal, an inside joke, and just enough personality to spark some friendly competition.

The wrapping paper comes off, the room goes quiet for half a second, and suddenly everyone wants the same gift. That is the sweet spot. A great white elephant pick should make people laugh, lean in, and start plotting their next steal before the turn is even over.

Should a White Elephant Gift Be Funny or Useful?

A white elephant gift can be funny or useful, but the strongest choices usually give people a reason to laugh and a reason to keep the item. A practical gift with an odd design, unexpected feature, or playful theme can get a reaction without becoming something the recipient immediately wants to give away.

The right balance depends on the group. Close friends and family members may enjoy a ridiculous gag gift because they already understand one another’s sense of humor.

A workplace exchange, neighborhood party, or mixed-age gathering usually calls for something with broader appeal. In those settings, humor works better when it is built into an item people could still use afterward.

It also helps to think about how quickly the gift will make sense once it is opened. A strangely shaped kitchen tool, oversized mug, quirky desk accessory, or unexpectedly fancy everyday item can create an immediate reaction. Guests understand the joke right away, while the item still has enough practical value to attract a steal.

Pure gag gifts can be harder to pull off. Something that exists only for the punchline may get a big laugh during the reveal and then sit untouched for the rest of the game. If the goal is to bring one of the gifts everyone keeps fighting over, usefulness gives the joke staying power.

Memorable Present Ideas: Creating Inside Joke Gifts

Inside joke gifts can make a white elephant exchange feel much more personal, especially when most of the group shares the same stories. The trick is choosing a reference that people will recognize quickly instead of building the entire joke around something only two guests understand.

You can turn a memorable vacation mishap, office catchphrase, family story, or long-running group joke into the theme of the gift. A personalized comic book can work especially well when it turns familiar people or a ridiculous shared moment into part of the story.

Think carefully about who the joke involves before ordering anything permanent. The gift should make the person feel included in the fun, not singled out for the wrong reason.

Can You Bring Something You Already Own?

Holiday gift exchanges can be a good place to re-gift something you never used, especially if it is unopened and clean.

The following can all work if they still look presentable:

A duplicate kitchen gadget
An untouched game
A decorative item
A sealed gift set
An unopened candle
A new travel accessory

The goal is to give the item a second chance, not use the exchange as an excuse to clear out damaged or unwanted clutter.

Take a close look at the packaging before wrapping it. Faded boxes, missing pieces, visible wear, or anything that looks obviously used can make the gift feel careless.

Wrapping Budget-Friendly Gifts

Wrapping can make gifts more entertaining before anyone even knows what’s inside.

Misdirection works especially well for fun party games. Put a small gift inside a much larger box. Use packaging from an unrelated household item.

Add harmless weight so guests cannot guess what they are holding. The reveal becomes part of the joke without changing the gift itself.

You can also lean into the theme of the exchange. Bright paper, oversized bows, reusable bags, or deliberately over-the-top wrapping can make an ordinary item feel more memorable. If the gift itself is already funny, simple wrapping may work better so the surprise stays hidden until the last second.

Frequently Asked Questions

Is Picking Last an Advantage in White Elephant?

Picking last can be an advantage because you get to see almost every gift before making your move. Instead of choosing blindly from the remaining wrapped presents, you can steal something that has already caught your attention if the rules still allow it.

That advantage depends on the house rules. Some games limit how many times a gift can be stolen.

Others lock an item once it reaches a certain number of steals. If the most popular gifts are already unavailable, the final player may have fewer strong options than expected.

The first player can also get another turn at the end in some versions of the game. That rule can balance things out, since the person who started with the least information may get one final chance to steal.

How Do You Plan White Elephant for a Large Group?

For a large white elephant exchange, set a firm spending limit and establish the stealing rules in advance.

Create a clear turn order before the game begins. Drawing numbers as guests arrive can save time once everyone is ready to start.

Keep the number of steals per gift limited so the game does not drag on. It also helps to have one person track which creative holiday presents have been stolen and when they are locked, especially if dozens of people are participating.

Can You Play White Elephant Virtually?

A virtual white elephant exchange can work over a video call, with one person keeping track of the turn order and each steal. Guests can either mail physical gifts ahead of time or use digital gifts that can be delivered once the game ends.

Set the spending limit and stealing rules before everyone joins. It also helps to decide how gifts will be revealed and who is responsible for sending each one afterward so the exchange does not become confusing.