How Would you Answer This Question?

I love it when a post can generate this kind of indepth discusson and yes to Bob S. 

Can anyone answer my question?

Will you tell me what neighborhoods have the highest appreciation? We all agree, you can't tell someone what neighborhoods to stay away from. That's a no brainer.

I can ccommunicate with a person and show statistical market data where a neighborhood may be increasing in value bet even that is going to vary by both location AND price range. There is nothing in the Fair Housing statutes that forbids sharing this kind of information.

Thanks to BOTH Bob's for generating and expanding this conversation. 

Bob:

When people are relocating to my area they want to know which towns (not neighborhoods) are better - but by certain criteria.  It is usually about the school system, resale and tax rates. Those facts are available and important in their decision making process.  I don't' think anyone would consider that a violation of fair housing.

We were discussing this in law in our office the other day.  It seems like this is antiquated rule that needs to be updated.  It should be the job of a good realtor to help find the right fit for their client, which would include having knowledge about different neighborhoods in their market. Explaining to a client that one neigborhood is better than another (say because it will hold value in down turns), should not be a violation of Fair Housing laws if my intent was not to red line or block bust etc. 

Bob, WOW what a hot topic and the comments are great too!  I adhere to the fair housing law and do not steer.  With that being said and even stepping aside from fair housing for a minute.....whats good for the goose, isn't always good for the gander.  Lets talk about neighborhoods for a second, I may not want to live in a certain neighborhood due to crime, pollution, etc. but that doesn't mean you wouldn't want to live there.  I may think one town is a dump but yet I have three buyers who are looking to buy a home there before the tax credit expires. 

Again, we are prohibited from steering by law, but who are we really to tell someone where to live?  To each their own....

When asked a direct question, I do not steer or give an opinion but provide them with the source so  that they can make an educated decision on where they want to live.  That source may include demographics, crime stats, school information, household median income, etc.   Suggesting buyers drive past schools, visit the local police department, drive around the neighborhood, visit the local supermarket wouldn't be grounds for steering or would it?

I've really enjoyed reading the post and comments. I've worked with some in the industry that will shyaway at anything that remotely looks like it could be a violation and I've also worked with others that figure out how to answer them in a way that isn't a violation. It really depends on your personal preference.

Okay... this is NOT an antiquated rule that needs to be updated... it's simply a rule that many (Realtors included) don't fully understand.  Bob said "I just get the feeling that no one knows exactly where the line is", and he's right (proof offered daily on websites like Trulia and Zillow).

Yes, we are allowed to answer the question "what are the crime statistics in Evanston" by providing the printout from the Evanston Police Department, or directing them to the Evanston Police Dept's website.  Yes, we are allowed to respond to a direct question like that.  We can also respond directly to the question "what was Evanston's housing appreciation between 2005 and 2006.  Or what was their DEpreciation in 2008-09... and how does it compare to the depreciation in Wilmette for the same time period?  We are allowed to answer those questions.

What we are NOT allowed to do, is provide all of those statistics without having been asked, because that could be construed as "steering"... (meaning I show you the local crime stats for 3 communities, and I may be trying to tell you that the one with the worst stats, you shouldn't be viewing... trying to steer you away).

What kind of people live in this neighborhood?  Answer: People who can afford to live here, JUST LIKE YOU.

Any more questions?

Bob S., here's an interesting article that addresses the concerns of buyers... as to why their Realtors cannot answer questions that buyers feel should be answerable.

Questions your broker (agent) can't answer.

So many good answers to your post. Thanks everyone for giving some thoughts to add to my toolbox of experience.

To Both Bob's - Recently this has come up to me as well. A client saw online, I wont say where, that a certain town has a higher crime rate than others. They then called the local police dept. and they told them it was a typo.. Best to just answer them with another question like Jody up top. Just my two cents

"Best to just answer them with another question"

The problem with that approach, Robert, is that the general public gets irritated with us, as they feel we're being evasive when we "dance around the question".  i'd prefer to reply (when appropriate) that "fair housing laws prevent me from directly answering your question.  But here are some resources that you can use to determine the answer to your questions".

At least that way, I've done something to answer their question, and explained, clearly and honestly, why I can't.

I am always shocked by the ways that agents will answer on public forums regarding questions of this sort.  As an agent who was visited by a tester at closing time at my office the first year I was licensed, I am careful about how I present things and answer questions.  I utilized all the knowledge I had gained in classes, by reading and from my mentors to pass the tester's questions with flying colors, I never worry about what I am saying, because I know the rules and how to present them.  Every agent should!  Good post!

Bob H and Bob S - What a great dialogue going on here today on this post. Here in Nevada, we don't have a Megan's Law on the books but you can be darn sure I check it for my own edification every time I sell a house just to see what's going on nearby. I would not be afraid to share appreciation statistics on any particular neighborhood - I just wouldn't describe the social demographic while I did so. With regard to crime, my husband is a member of local law enforcement and I often recommend they as him! That way it didn't come from me.

oops, that last one was me, I was logged in helping Robin get her photo updated:

Well, I had a bit of the opposite problem...a white woman buyer that wants to buy a lot to build on in a very old black community. Those folk HATE it when "whitey" moves in there...it really might be a dangerous situation for my buyer. I DID NOTHAVE NOT said a word. I REALLY wanted to...her friend that was with her pointed out about how bad the neighborhood is and really tried to talk her out of it. She is going ahead with the purchase anyway. I really wish she would not...but I really can not and should not say one word because of this rule. The problem runs in all different directions.

Well, I had a bit of the opposite problem...a white woman buyer that wants to buy a lot to build on in a very old black community. Those folk HATE it when "whitey" moves in there...it really might be a dangerous situation for my buyer. I DID NOTHAVE NOT said a word. I REALLY wanted to...her friend that was with her pointed out about how bad the neighborhood is and really tried to talk her out of it. She is going ahead with the purchase anyway. I really wish she would not...but I really can not and should not say one word because of this rule. The problem runs in all different directions.

Bob, as I mentioned before... if someone asks for crime stats, you are allowed to direct them to where they can find them.  You COULD just print them out for them... but it's better if you allow them to find them.

Criminals are not a protected class (although it sometimes feels that way), but it's not about protecting the criminals...  you can certainly send them to a website that shows if any sex offenders live in the neighbourhood... but the key is.. "answer questions"... don't suggest that if they're going to look in the Statesville neighbourhood, they might want to check the sexoffender hotline first.

It's not about protecting the criminals.. it's about being neutral about neighbourhoods... and it's better to err on the side of caution, and allow the buyer to do their own due diligence.

Ooooh...I'm not too comfortable with the conversation above in #84.  I don't care which direction the problem runs in.