Jennifer Rada, Home Buyer in Wisconsin

I see a lot of comments on 'Steering'. I understand why licensed realtors can't give a local opinion on an area - but...

Asked by Jennifer Rada, Wisconsin Sat Jan 5, 2013

this site isn't just for realtors right? If that is true - then I think insider advice regarding a neighborhood or development would be welcomed.

Keeping in mind, of course - the views expressed would merely be opinions and those can vary widely. None the less - it's nice to hear from people who have lived in certain areas and how THEY felt about their region/home/development etc. :)

Thx. :) I just want to make sure I've got the rules right.

Help the community by answering this question:

Answers

10
There seems to be some confusion about the purpose of the Fair Housing Act.

Licensees do not just serve their clients, but they serve the public - that is the purpose of licensing, after all.

Short and sweet: if you provide an opinion of real property based on the protected classes enumerated in the Fair Housing Act, you're a violator. End of story.

And it is construed very liberally, so don't think you can get away with sophistries.
2 votes Thank Flag Link Sat Jan 5, 2013
The challenge that we face is that as real estate professionals our "opinion" is assumed to carry more weight than an opinion of someone that is not a professional in real estate.

For example, when a client is looking at a property and asks a friend what he thinks. His friend is free to share his opinion - his friend can say, for example, "I don't like the neighborhood - too many neighbors". I can't.

His friend can share his opinion regarding the price of the house. When I say the price seems low, fair or high, I better be backed up by real data, not just my "gut-feeling".
1 vote Thank Flag Link Mon Jan 21, 2013
We as agents have to be careful when answering specific questions about a neighborhood and how safe it is or how are the schools. Agents are required to give you a Buyer Advisory which has websites where you can go and get specific information on schools, crime, sex offenders, etc. I give this to my clients and have them do the research on those things and determine themselves if they are okay with what they find out because it really is arbitrary. I recently helped two clients find a home in the same neighborhood. One liked the schools and the other didn't.
0 votes Thank Flag Link Wed Jan 30, 2013
Hi Jennifer,

If your question were about crime I would suggest calling the police in the area or searching on line.
It's about steering and all of my clients receive the same information. Changing answers, because of someones race or financial status is a bad idea.
0 votes Thank Flag Link Sat Jan 5, 2013
There appears to be a misunderstanding by real estate agents about what constitutes a fair housing violation or steering. Simply expressing an opinion about an area, even if it's a negative opinion, would only constitute steering if my intention was to somehow alter the makeup of that or another neighborhood. Good luck proving that. If my buyer asked me, "what do you think about Lower Suburbia" and I answered, "I think it's pretty ghetto", that would not constitute a fair housing violation unless my client felt, through my comment, that I was discriminating against THEM and only if I was discriminating based on one of the protected classes under the Fair Housing Law. If I were to show houses only in cul-de-sacs to a family with a deaf boy because I thought cul-de-sacs were safer for deaf children, then I may be engaging in fair housing discrimination against my client because I am deciding which houses to show them based on my personal feelings about their son's disability.

See the difference?

We are taught in our real estate classes to avoid any such types of conversations for liability reasons and to simply say we cannot answer those types of questions. But then that makes us look pretty clueless, doesn't it? We absolutely CAN answer those types of questions, we just have to make sure that we don't say or do anything based on our client's race, color, religion, national origin, gender, familial status or disability. If my client is a wealthy caucasian male, saying that Lower Suburbia is a ghetto would not be discriminating against my client in any way. If my client were a minority, then they may feel differently about my comment and it may be a fair housing violation. I might not have a high opinion of Lower Suburbia for being a ghetto, but the people who live there are not my clients and I am not doing anything to try to alter the makeup of that or another neighborhood simply by stating an opinion to my client when asked.

For the same reason as the above, there is also nothing wrong in saying "it's my impression that crime may be an issue in this neighborhood, but you'll want to check to make sure". However, checking crime statistics for our clients is not something most agents are willing to do because it puts liability on us for making representations about crime in certain neighborhoods. It's no different than if a buyer asked me "what are the permitting requirements in this town for me to build a house?" I could go and get that information for them, but I won't because I could be held liable for the information provided. Quoting crime statistics has nothing to do with steering and fair housing - it's purely a liability issue.
0 votes Thank Flag Link Sat Jan 5, 2013
Hi Jennifer,

As pointed out, your understanding of the rules is correct. If you want to compare neighborhoods, your agent can provide reports from which you can draw your own conclusions. There is also plenty of resources online. You can look at many different demographics to compare areas.

Driving the neighborhoods and spending sometime there can be a real eye opener. Checking out local markets can give you a feel for the people that live in the area. This does not work for out of town investors buying sight unseen. However, a detailed discussion of objectives can help the agent provide information to make an informed decision.

There are also other web sites not frequented by agents that have active discussions on specific areas or neighborhoods. Contact me directly and I'll point you to where you can find some open discussions.
0 votes Thank Flag Link Sat Jan 5, 2013
Hi Jennifer,

You are right, there are many ways to get opinions. But steering is a very specific term and as licensed agents, that is an illegal act. While the buyer in question in the previous thread was asking to for an opinion of areas that might be best, which is not steering, it is still a no no by fair housing laws. A definition of steering is the illegal funneling of home buyers to a particular area based on the desire to keep the makeup of that neighborhood the same or intentionally change it. So, if a buyer says they only want to by in an area with green people, or don't want to be near any green people, an agent can't provide that information. The buyer's advisory that is provided by the Arizona Dept. of Real Estate and AAR, is an excellent tool for any buyer to find the resources to research and answer their questions, when an agent is forbidden to do so. You can see it here http://www.aaronline.com/documents/buy_advis.pdf
0 votes Thank Flag Link Sat Jan 5, 2013
Actually, if a client specifically says "I want to live in an area with a high population of green people" I absolutely can provide them with that information. I am not discriminating against my client in any way. But, if my client were green and I purposely only showed them houses in neighborhoods with green people, then it would be a fair housing violation. Can't you see the difference?
Flag Sat Jan 5, 2013
You are completely right. Opinions from regular buyers and sellers are not only allowed, but very welcomed. I wish there were more regular users on this forums.

The only restrictions are on us as professional Brokers and Realtors. By law we can not steer a client to any specific area(s). Which is completely undestandable.
0 votes Thank Flag Link Sat Jan 5, 2013
Hi Jennifer,

You are right, these rules are generally for those that have a license and are regulated to follow. There is nothing preventing a buyer from asking questions of the general public and even asking questions of neighbors that would give you insight that we as agents may be prevented from answering.
0 votes Thank Flag Link Sat Jan 5, 2013
Hi Jennifer, This site is not just for Realtors. As a Realtor I am not at liberty to discuss certain topics such as safety etc. Yes you have the rules right!!
0 votes Thank Flag Link Sat Jan 5, 2013
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2016 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer