Fair Housing Group Says Corcoran Doesn't Care About Black People

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The National Fair Housing Alliance says that real estate brokerage Corcoran discriminates against black people and also tries to steer white people from black neighborhoods. The NFHA, which was following up discrimination claims in a 2000 Department of Housing and Urban Development report, put both black and white people, posing as potential buyers, in a Brooklyn Corcoran office. Though the black "buyers" were more qualified, the whites received extra information about financial incentives. Further, the white "buyers" were urged to look in certain neighborhoods. From the National Fair Housing Alliance's report:

Agents at the Corcoran Group Real Estate were also found to have engaged in racial steering. In this investigation’s most egregious incident of racial steering, one agent produced a map of Brooklyn and drew a red outline of the areas in which the White homeseeker should consider living. He pointed to the neighborhoods of Prospect Heights, Park Slope, Windsor Terrace, Cobble Hill, Brooklyn Heights and parts of Carroll Gardens as attractive neighborhoods for the White homeseeker, and indicated with arrows the neighborhoods that were “changing.” The agent also noted the high quality of schools in these neighborhoods as further indication of their desirability to the White homeseeker.

This tactic harkens back to the days of redlining before the Fair Housing Act of 1968, the Community Reinvestment Act of 1977, and the numerous examples of litigation against insurance companies brought over the years, some by NFHA. During our 16 years of existence, the National Fair Housing Alliance has never seen such a literal and blatant example of sales steering. This racial steering tactic is reminiscent of discriminatory conduct from the 1970’s when real agents would go into White neighborhoods with the specific intention of triggering White flight by showing on a map where an African‐American family had bought a house. This Corcoran Group agent applied a new trick – he used a map to tell whites instead where they should ‘flee to.’

The map at top is the one the Corcoran agent drew on; the map at below is from the NFHA that shows Corcoran offices (the stars) and the distribution of blacks (black dots) and whites (white dots) in the city.

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Corcoran's president and CEO Pamela Liebman told the NY Times that the company was "devoted to fair housing" and had trained employees in fair housing law and practices recently, but added that she hadn't seen the charged and "anxiously await[s] them as we intend to defend ourselves vigorously.”

The NHFA's big point is that NRT Inc., Corcoran's owner, has a "pattern of discrimination," noting incidents at NRT's Coldwell Banker offices in Georgia and Chicago where brokers would overwhelmingly show homes to white buyers, while showing black buyers few homes - if any at all. You can read the NHFA's report here (PDF).

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is this surprising to anybody?

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Segregation in the NYC housing Market?
That can't be? In Brooklyn? No way?

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the racism is not surprising, but the lack of "business acumen" is, but, alas, racists policies continue to abound today in many subtle ways and trump business "needs". as unfortunate as this may be, i cannot help but wonder if there may be a silver lining (to a certain extent) in that it may curtail gentrification up to a point. yet, it also means less tax revenue for those districts that are being "redlined."

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Well, it looks like it was a surprise to Corcoran - not to mention NRT!

While it might be sadly expected, reports like this are important - it formalizes and escalates the complaint.

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one clarification for the issue i raise in my comment above.... the gentrification may be curtailed by steering whites away from traditionally minority and/or low income neighborhoods. as for steering Blacks and other minorities from traditionally white neighborhoods, there is no silver lining there - that is just pure racist baloney.

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I agree with you but in the end the message is going to fall on deaf ears.
The only thing we can do is what you're doing Jen.
Keep this on the front burner.

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"Redlining", in the sense that I've understood it, meant discriminatory practices in services, (especially mortgage rates, etc) in the "redlined" areas (typically black areas).

While not advocating what the agent might be doing -- and without info on what was actually said to the prospective buyers, that map is not, on its own, racially discriminatory.

A map telling a well-to-do buyer that, for instance, the Upper East Side might be more suited to them than Harlem, could simply be telling them that the neighborhood is indeed wealthier and more likely what they're looking for. It could also be evidence of a blatant racial bias, but on its own, it's left open to one's interpretation.

This map could simply be telling someone unfamiliar with Brooklyn geography that the wealthier, yuppier areas are Park Slope, BoCoCa, etc.

(Caveat: I'm white, and live in Harlem. Redlines be damned!)

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But Brooklyn is Not Manhattan.
Brooklyn is the MOST segregated borough in the City.

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Actually, if the agent was steering on race alone (s)he would be remiss not to recommend Bay Ridge and Bensonhurst as well!

I think cases like this are sad because it will cause people to conclude that parts of NYC really are closed to members of a certain race, whereas the reality is, um, more complicated than that.

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I don't understand all the fuss about this. If the prospective buyer went into the Concoran office and asked about safe, lower-crime neighborhoods in Brooklyn, the agent necessarily would have pointed out the neighborhoods he did. Why should we force whites to live in a neighborhood they don't want to live in all for the sake of nondiscrimination? The only think I can see that would be discriminatory is if a white person came in to the office and asked to live in a black neighborhood but was steered away by the agent.

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Thanks Jen for posting this,
keep on keeping on for people who don't understand.
(and, never will)
According to the map, there's no Corcoran Offices in Bay ridge or Bensonhurst. Maybe there is.

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As a white parent, I'm just not going to put my kid in either an underperforming or a predominantly black school. I'm not saying that the former means the same as the latter. My reason for the former is obvious and my reason for the latter is sociological.

I realize that's not PC, and there are greater social problems that speak to why that is - but it's just reality. I wouldn't do it. In that case, I'm asking the realtor where the schools are that fit my criteria.

As a SWM, my criteria are totally different.

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bllbll-

So let me get this straight... It's O.K. to steer whites (all of which in your mind are high-income) away from low-income/minority neighborhoods because of the ensuing gentrification, but it is terribly racist to steer blacks or other minorities away from white neighborhoods? If I understand you correctly it is quite obvious here who is the racist with the double standards.

The problem, Steve, is a realtor deciding who they think should live where and enforcing that decision by encouraging or discouraging potential buyers based on the color of their skin. If a white guy went into Corcoran and said I want to live with other white people, or a black man went in and said I want to live with other black people, then while it might raise an eyebrow, you could justify it as responding to a client's needs.

On the other hand, take the situation you described at the end of your post and reverse it... in other words a black man goes in and says I want to live in an white neighborhood and the realtor, either overtly or subtly, says, nope, that's a white area.

I have to agree with the majority of posters and just say... racism in real estate? In NYC? DUH.

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Agree that there seems to be a total lack of causality here regarding the map.
I drew myself a similar map to avoid wasting time with realtors dragging me arround substandard or "edge" nieghborhoods. The fact that I excluded plenty of areas that may have had high percentages of black people there was beside the point and unintended.
Now the other issues raised, such as the lack or quality of infomation given out to prospective owners based on their races- that is going to hurt. Although it will be tough to prove.

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anonymass, your comment is telling. Only white families care about not sending their kids to "either an underperforming or a predominantly black school"? Why would a black family of equal means to a white family (or in the case of the experiment described in the post, of more means than a white family) want to send their kid to an underperforming school, or even a predominantly black school (which in New York means, for many reasons "predominantly poor and underperforming")?

The post is about realtors giving different information to white and black homebuyers as a means of affecting what neighborhoods those buyers end up in, based on their race. But that black family deserves the same treatment and information about neighborhoods and schools from the realtor as the white homebuyer.

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I was a realtor in the Brooklyn Heights Corcoran office for several years, and while I can't say that steering never happens, it's something that the overwhelming majority of brokers would never do. Why? Not because of high-minded civic ideals, but rather because a real estate salesperson/broker just wants the money. The money isn't black, white, gay or Hispanic.

It makes no sense to limit the neighborhoods you're showing to prospective buyers: the more you show them, the more likely they are to buy. That's why brokers drag you all over town, even when you ask them not to.

That said, there are some real idiots in the biz, and I have no problem believing that it could have happened.

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Chris said: "So let me get this straight... It's O.K. to steer whites (all of which in your mind are high-income) away from low-income/minority neighborhoods because of the ensuing gentrification, but it is terribly racist to steer blacks or other minorities away from white neighborhoods? If I understand you correctly it is quite obvious here who is the racist with the double standards."


chris, i realize my clarification created a new mis-statement. thanks for pointing it out.

both forms of steering are racist. period. i was just clarifying in which form of steering there *may* (not will) be, to a limited extent, a silver lining - the steering of whites away from minority or low income neighborhoods - only and only because it may forstall or slow down the gentrification that many complain about.

btw, i never said anything about whites being rich. when referring to the possibility of increased tax revenue for the low inocome or minority neighborhoods, i was simply referring to 1) the tendency that many (though not all) new home buyers in those neighborhoods often are buying expensive, renovated pre-war buildings and, therefore, are likely to pay high(er) taxes and 2) the scenario that more people moving into low income/minority neighborhoods means population growth which means increased tax revenue while steering folks away from these neighborhoods will slow population growth, etc.

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Hans, agreed - steering a black family away from a white neighborhood is atrocious. My comment was speaking more to the map itself which seemed to identify 'white' neighborhoods for a white buyer.

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damn! look at all those black dots in my neighborhood. Time to pack up and move to white dot land.

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I don't see any "silver lining" involved in avoiding gentrification or whatever, but I do think that there is a distinct difference between "steering" whites away from "black" neighborhoods and "steering" blacks away from white neighborhoods.

Although the former could be racially motivated, I think it is less likely and there are legitimate reasons for doing so. It's a fact that we seem hesitant to admit sometimes, but let's be explicit: there is a statistically significant correlation between predominantly black neighborhoods and poor neighborhoods in the USA, and there is likewise a statistical correlation between poor neighborhoods and crime. I don't see how it's racist to admit this -- it's indicative of the fact that there's still a social and class chasm that needs to be bridged, but it is what it is. Looking at the Corcoran map, it seems to me more likely that the clients are being steered away from neighborhoods that are less safe and lack the kinds of amenities that people wealthy enough to use a broker are looking for.

The latter practice is less defensible. I can't think offhand of any racially neutral reason for a broker steering a black client away from a traditionally white neighborhood.

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I remember once walking in cobble hill and marvelled as I never saw a single black person. I was like "this place must have no crime". IF only I could afford cobble hill

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Why is it that even when presented with one of the most clear examples of racism: in housing (which speaks to ownership/investment, general quality of life, education of your children, networking options, dictates commute, etc)...

Many white people seem have one of two responses:

A) That's not racist (your racist or thinking it's racist)
OR
B) Duh. Everyone's racist. You didn't know? (Except for me...my cousin' black.)

Who actually ahs the power to do anything about this?

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"there is a statistically significant correlation between predominantly black neighborhoods and poor neighborhoods in the USA, and there is likewise a statistical correlation between poor neighborhoods and crime. I don't see how it's racist to admit this"

It's not. It's racist to contribute to it. It's institutional racism revealed when the largest real estate agency in NY trains their employees to practice racism.

"there's still a social and class chasm that needs to be bridged"

Oh really, douche. Thanks. Like your racist/classist comments help build that bride.

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people who aren't racist will go bankrupt. The reason why Corcoran IS the largest real estate agency in NY is exactly why they need to blockbust and redline. If they actually wanted to integrate blacks and whites and played by fair housing act rules they would go out of business. Hell, black people don't want to live with black people. black people want to live with rich affluent, cultured black people and they are so very few in number. look at puff daddy: he went to private school with whites, look at chris rock: private school with whites. If they went to black schools they probably would be working for the NY dept of sanitation. the Cosbys are a myth.

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"people who aren't racist will go bankrupt"

I'm sure that's what they told the Hassidim when they bought the Black and Latino parts of Williamsburg. Housing in Williamsburg is worth next to nothing now...

P.Daddy/ Chris Rock-

Yes. The only wealthy black people in this country got rich in Entertainment and Sports and they did it by going to white schools...

Cosbys-

Never been to Fort greene?

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yeah miquel, just back up that guys claims with more racist bullshit.

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"It's not. It's racist to contribute to it. It's institutional racism revealed when the largest real estate agency in NY trains their employees to practice racism."

Uhh, it's racist to direct clients away from higher crime neighborhoods that lack the amenities that those clients are looking for? Which is beside the point -- there are many, many problems, from educational gaps to employment gaps to plain lingering social and institutional problems that need to be solved. I'm confident that "wealthy people living next door" is pretty low on that list. Do you really think that the family forced out of their home when a trust fund baby moved into an Avenue C apartment is in a better lot now than they were before? Or the family living in a housing project on Avenue D?

"Oh really, douche. Thanks. Like your racist/classist comments help build that bride."

Lol. More trenchant analysis. Comments on gothamist that offend oversensitive idiots are deepening our nation's many social ills. You should write a sociology textbook.

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um, where are the brown and yellow dots?

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If you read the report, you'll find nice little details like this one:

Agents provided limited service and information to potential African‐American homeseekers, thereby restricting their opportunity to view a number of homes in a variety of neighborhoods where their race does not predominate. In one test, a White homeseeker saw thirteen homes versus only one seen by an African‐American. Agents furthered engaged in unequal treatment by providing more detailed financial options and incentives to White homeseekers. One agent presented a White homeseeker with a sales application, and offered to negotiate a reduced sales price and research alternative living arrangements. The African‐ American homeseeker received no such service.

Lawsuit time.

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Silly question. They're in Queens.

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I am a black female married to a white man. I had a similar situation in Manhattan. We moved to NY from Paris. He stayed in Paris a month after I moved here. I was shown three places by Cocoran in a months period. He came here -- went to the agency and we looked at 8 places in a week! It made me mad because I feel like I am as good as everyone else. We ended up buying a home in Montclair from a black homeowner. I don't think people should judge other people in groups. A lot of black people in this country are poor and while some of it can be attributed to lack of discipline, etc. A lot of can be blamed on the racist social-eco system in this country like the lack of public school funding and not enough adaquate pay labor jobs. I wish I could explain this better but English is a fourth language for me!

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Anyone who's read the annual report that Corcoran sends out can tell you that Corcoran has goals far above simple profit margins. Each year I am disgusted to read how they've "raised property values" here and "rejuvinated" there... Corcoran's goals include the massive rent increases and segregation that would go hand in hand with the kind of treatment described in the article. Corcoran must be at the top of the list of parties responsible for the outrageous rents in Brooklyn. Even Red Hook, without transportation or smoothly paved streets, is beginning to be unlivable. Dumbo is gone. My $600 (1998) crappy floor through off of Columbia street now rents for 1800! and it hasn't been renovated.

Corcoran does not want black people moving to Park Slope, and they would like to get rid of the Hispanics there too. Why? because they can't pay the higher rents that landlords there want. because they are seen as trouble by the Italian neighbors. because all the yoga moms want their little private school kids to be able to play in the street without the smell of blunts and the sound of rap. I live in the center of park slope and can tell you, I may not feel this way, but these feelings are very real.

I realize this article was about purchasing not renting, but I believe it's all tied together. Corcoran is evil in many ways, and eventually will be responsible for you not being able to afford your apartment where ever you are in Brooklyn.

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I did read those reports. And racism is an issue that I have dedicated the larger portion of my intellectual life toward understanding, de-coding and improving and I was saddened and tremendously under-whelmed by the findings and frankly outraged at the enormous tax payer dollars expended on this investigation ($250mil).

The NFHA claims that an agent explained that a particular area was “up and coming”. Another agent spoke to their buyers about schools in the neighborhood which the NFHA claims is some kind of coded language about the racial composition of an area. To prove that they pulled up test scores of the “bad” public schools in areas and demonstrate that they are either “near” or “slightly” above the national average. (What could be wrong with that school?) They refer to both of these acts in inflammatory terms like “Never in all my years have I witnessed such egregious acts of racial steering”. One can only say, Really? They are in the business of identifying the worst cases of discrimination… They were awarded millions of tax payer dollars and they have been conducting tests for years.. and this is the worst (the most “egregious”) of what they found.

I heard this woman on some radio show. I walked away from the show deeply angry at how this woman was trivializing such an important topic. She starts with the premise that NYC as the most abominable case nation wide of segregation; Nationally according to them “the most egregious”. (yes they use that word “egregious” like 10 times)

This is factually not true. Not because NY is some mythical world where race doesn’t matter at all. But it does not deserve this title by any stretch of the imagination. Many NY neighborhoods are shining examples of integration. Even our whitest neighborhoods are not entirely white. And where the hell are the brown and yellow dots?

So after making this astonishing (to me) statement she starts up with these references to her own “Hungarian” background as some sort of ? Something about her poor grandparents lived in Hungarian neighborhoods? She goes on to talk about how the NFHA goes into neighborhoods where white people are leaving (white flight) and they ask (plead with.. knock on doors petitioning for) them to stay “so that the neighborhood won’t go downhill”.

She says they sent out black and white testers and claim the black testers were shown less property. However probed about how the appointments were scheduled it turns out they were scheduled over the phone. So she explains in order to alert the agent to the fact that the caller was black or some other race they would “amp up” so to speak the blackness or Korean-ness or ethnicity of the callers. It has to be hard enough to fake that you are buying but on top of that to be James Johnson an attorney with a British accent.. and now place a call as Tyrone “the kill-a” who owns a chain of porn shops and is looking to buy in Ebonics…. And they are calling agents whose livelihood depends on their ability to mete out the serious, loyal and genuine buyers from the lookers, the insincere and the disloyal.

Then after explaining this fool proof methodology she goes on with some bizarre self referential bit about how her name “Shanna Smith” is soo unusual and people ask her all the time what she is. ??

Is there really such a shortage of discrimination that with these obscene amounts of money and years and years of investigation they really have to invent it like this?

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"Uhh, it's racist to direct clients away from higher crime neighborhoods that lack the amenities that those clients are looking for?"

Read the report douche: "Agents provided limited service and information to potential African‐American homeseekers"

Rosalind-

"I feel like I am as good as everyone else"

This is a great example of why I am admittedly sensitive about race. Beacause in real life, it has very substantial ramifications, specifically, on the psyches of people of color. Rosalind, you shouldn't have to feel like you are as good as everyone else. YOU ARE! This is something that you should KNOW and exactly why Corcoran should fuckin shell out big time. If you have a receipt for services rendered by them, you should sign up for the class action suit once they make the announcement.

JJ-
Ever hear of sarcasm, boss?

Mellow- your comment is right on. Park Slope gives me the creeps.

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Puffy also went to Howard University, an Historically Black University in DC.

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Corcoran is very Racial :

I'm a 30 year old Hispanic Male. I currently own 2 Brownstones in Bed Stuy as well as 2 Houses in East Williamsburg. So I decided to attend an Open house for 560 Jefferson Ave in Bed Stuy looking for my next investment. The asking price on the Brownstone was $700,000, which I thought was a little high regarding the fact that I bought the Brownstone next door for $620,000 just a month prior to the sale and my Brownstone has more beauty and detail then the one currently up for sale. Here is a pic

(I own the Brown and green Brownstone and I was trying to buy the Beige Brownstone next door to the right)

I made an Offer for the exact asking price ($700,000) to unfortunately a Black Broker (we all know brothers in power don't know how to act). Not to mention the Open House was for appointment only and I didn't get a call back after leaving several messages. So I did what anyone else would do and crash the party. I never have seen so Many white folks in the middle of Bed Stuy looking to buy a house. To make a long story short, I made the offer ($700,000). The House sold and I didn't even get a call back from Corcoran or a call telling me if I wanted to make a better offer in case there was a bidding war. I was highly offended because business is not done that way. I thought the Jews were the only ones trying to get us out of most neighborhoods in Brooklyn. The least I deserved was a call back. I would never associate or do business with that Company again.

Read this article= Battleground in Bed Stuy(http://www.timeoutny.com/newyork/Details.do?page=1&xyurl=xyl://TONYWebArticles2/565/features/battleground_bed_stuy.xml).

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"Corcoran does not want black people moving to Park Slope, and they would like to get rid of the Hispanics there too. Why? because they can't pay the higher rents that landlords there want. because they are seen as trouble by the Italian neighbors."

No surprise as far as the Italian neighbors: In my upbringing in nyc, I have found the Italians to be the most anti-black white ethnic group in the city.

The best of luck to plaintiffs in the suit against Corcoran and hopefully, a successful suit (with massive financial damages) will discourage such racist treatment.

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I dont care about black people either. they're loud, they hang out on the street all day, they swear too much, illmannered slobs, play their damn rap music up to 30000 decibles, gangsta idiots, reject education because it makes them "too white"...can you blame people for not caring about black peope? they obviously dont care about themselves so why should anybody else?

people naturally segregate themselves for a reason. its not racism, thats just life. deal with it.

Segregation is the adultery of an illicit intercourse between injustice and immorality.

-Martin Luther King, Jr.

Reading the gothamist post and the comments has convinced me that most people aren't interested in minorities (including white women in this group) having equal access and opportunity to fulfill the (fast disappearing but hey what else can we hope for) American Dream. EVER.

It's a cold, harsh reality that I'm incredibly familiar with but still it must be said: DAMN, PEOPLE.

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Well I'll be damned! Ain't that a bitch !!! Here all this time I thought it was because of my bank account . Then I findout that their really are racist cocksuckers out there that can't handle someone that's a few shades darker then them ! What an EYE OPENER, Look racist bitches, If you want to live in a "White only" neighborhood then might I suggest one of them ultra wealthy hoods . Yes that's right I suggested that the folks buying these properties knew full well what was going on here . Your just as bad as the brokers for your silence ! I have a little secret for you all........... There is no place within the 5 boroughs where you all can have your own segregated hood ! Well maybe Staten Island, Thw mixing of the races is happening everywhere you all go so deal with it !

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It was definitely no surprise to me to find that Corcoran practices discriminatory policies. Twelve years ago my husband and I were considering moving to Fort Greene. We owned two other properties at the time one of which was the home in which we lived. Jerry Minsky, now a Senior VP at Corcoran who was affiliated with Brooklyn Landmark who merged with Corcoran politely showed my husband and I the home next to his on Greene Avenue. We made an offer that was accepted by the seller and proceeded to go to Paris for a long needed vacation. We were pre approved and more than qualified to secure the mortgage. We stayed in contact with Jerry while on vaction, however upon our return we were told that we were outbid. Jerry never offered us an opportunity to counter the bid. So we purchased a home in Victorian Flatbush with eight bedrooms, a huuuge backyard, a driveway in which we could easily park six cars, etc.. I later found out through perusing public records that the house on Greene Ave actually sold for less than what we had offered! Out of curiousity I drove by to see the ethnicity of the people who purchased the home. I was not surprised to see that they were white. Needless to say we are African American. With the money that we saved by purchasing our victorian we purchased two "tenements." One in Redhook and the other in Williamsburgh. The house that we live in and both the properties in Redhook and "Billyburg" have quadrupled in value. Thanks Jerry. Discrimination proved to be very profitable for us.

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There are so many horror stories about Jerry Minsky, who is a Sr. VP at Corcoran. How does he stay in business we all wonder?

Guys it is very simple.

BED-STUY,FORT GREENE,EAST FLATBUSH,BROWNSVILLE,CROWN HEIGHTS,RED HOOK,EAST NEW YORK and CANARSIE are black.
GREENPOINT is Polish
WILLIAMSBURG is Puerto Rican,hipster and Hasidic
PARK SLOPE, BROOKLYN HEIGHTS,COBBLE HILL,CARROLL GARDENS,WINDSOR TERRACE are white of all ethnicities (usually Anglo yuppies)
SUNSET PARK is hispanic and chinese
BUSHWICK is Puerto Rican and Dominican
BAY RIDGE,DYKER HEIGHTS,BENSONHURST,BATH BEACH,GRAVESEND,MILL BASIN,BERGEN BEACH, MARINE PARK and GERRITSEN BEACH are Italian neighborhoods
SHEEPSHEAD BAY,MANHATTAN BEACH,BRIGHTON BEACH are Russian
MIDWOOD,BOROUGH PARK,OCEAN PARKWAY are Jewish
KENSINGTON and SOUTH PARK SLOPE are mixed white black,hispanic,asian.

That's just how it is. Stop screaming discriminiation. That is the way of the world. This is how the human brain works. No middle class white couple WILL EVER buy an apartment in Brownsville or Bushwick. No black person would ever buy a house in Dyker Heights or deep into Gerritsen Beach for that matter. It is just not socially cohesive. KENSINGTON is my best bet for a mixed neighborhood.

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