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"Which zip codes represent good neighborhoods, and which ones should I avoid?"

By
Real Estate Broker/Owner with Dreamcatcher Realty / Greater Phoenix Area

This is a question that was posted by a prospective home buyer on Trulia this evening.  On the surface, it seems like a harmless enough question.  And apparently a few others had that same thought, as within minutes a couple of real estate agents weighed in and posted answers to the buyer.

I was shocked when I read their answers, as the agents literally named and described areas and zip codes that they deemed to be "good" neighborhoods.  What those agents did - probably without a clue - was walk all over federal fair housing laws like they were a pair of old worn out shoes! Check out HUD Fair Housing Laws and Presidential Executive Orders.

A friend of mine said, "those agents [that just flagrantly and publicly violated fair housing laws, in writing, on a national real estate site], should go ahead and mail their licenses back to the Department of Real Estate and save the Department the trouble of having to hunt them down!"

Following is a synopsis of my posted response to the buyer's question, the subject line of this post.

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The problem in attempting to answer your question is in defining what you mean by "good" neighborhoods. I don't mean to sound flippant or disrespectful, but 'good' to one person can just as easily be 'bad' to another.

If you're asking about which neighborhoods or zip codes have a higher crime rate than others, or perhaps information on registered sex offenders, there are sources for researching that type of information. One particular resource that's a joint effort of the Arizona Department of Real Estate and the Arizona Association of REALTORS® that provides a wealth of information on real estate related issues in Arizona, including the foregoing topics, is called the Buyer Advisory. I would invite you to access and print it out for future reference.

To continue with my point about 'good' or 'bad' assessments of any given area(s), a neighborhood with lots of families and happy, playful children can be heaven for some folks, but hell for others. A neighborhood with a preponderance of a certain ethnic background or religious persuasion can be quite appealing to some people, but quite aversive to others. A neighborhood with lots of families can be quite uncomfortable for some singles. I could go on and on with examples like this, but do you see what I mean?

You should also know that those of us on this forum that are licensed real estate agents or brokers are obligated to adhere to a myriad of federal, state and local laws. Some of those include fair housing, steering and redlining, but rather than giving you a long dissertation about those complex issues, I'll just say that there are certain things about which we simply cannot advise you. It just depends on your exact question, concern or request.

So if you would like to pose some more specific questions here, please feel free to contact me privately, and I'll do my utmost to assist you in accomplishing your objectives while at the same time maintaining our legal and ethical boundaries.

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For you real estate agents reading this who don't understand what I'm talking about, PLEASE do yourself and your clients a huge favor and take a good, strong refresher course on Fair Housing Laws before you find yourself in more hot water than you can survive, and before you're forced to make the biggest involuntary contribution you can imagine to the 'fair housing enforcement fund'!

 

Randy Hooker -  Chandler, Gilbert, Mesa, Queen Creek, Arizona Real Estate

 

Chandler Homes - Gilbert Homes - Mesa Homes - Queen Creek Homes - Phoenix Homes

Comments (101)

Patricia Kennedy
RLAH@Properties - Washington, DC
Home in the Capital

Randy, wow!  That is a question only a complete moron real estate agent would answer.  Geeze Louise!

Mar 15, 2009 01:49 PM
Deb Brooks
Brooks Prime Properties Wichita Falls Texas - Wichita Falls, TX

Randy, get out! I'm almost speechless. Almost I said. This is just amazing that number 1. the question was even asked and number 2. that anyone thought they could answer it????

Woo. Stranger things have happened I guess but this is just an enigma. Beyond the law...what makes the agents think they are the authorities over neighborhoods anyway?

But, of course, the $400,000 neighborhoods and up DO PAY MORE COMPENSATION....RIGHT?

I can only guess the reasoning all behind this. jeesh. Thanks for the post. See, I'm speechless.

Later in the rain~Deb

Mar 15, 2009 02:15 PM
Randy Hooker
Dreamcatcher Realty / Greater Phoenix Area - Gilbert, AZ
Gilbert, Chandler, Mesa, Queen Creek

Jeani ~ The more I think about it, the more I'm inclinded to think those kind of agents got an online license, and they paid a relative to take the exam for them.  You know, the same kind that buy a PhD for $20.  What do you think?   LOL

Rebecca ~ Does that mean you just didn't want to read the rest of the comments, or that you're a die-hard fan of Lenn (like I am)?   :))

Jen ~ there ya go!  There's always a way to deal with buyers and not alienate them.  Just have to find the one that's not illegal, immoral or unethical.

Pat ~ I always love your indirect, diplomatic, soft-peddle, sensitive approach.   LOL   Seriously, I love the way you cut to the chase.   :)

Deb ~ Holy crap, I love your gray!  But I almost didn't recognize you!!  BTW, you're never speechless.   ;-)

Mar 15, 2009 02:42 PM
Michelle Hatmaker
Real Living - The Hatmaker Group - Galveston, TX
Houston Galveston Real Estate

Randy--great response.  And good reminder to all of us!

Mar 15, 2009 02:51 PM
Bob & Carolin Benjamin
Benjamin Realty LLC - Gold Canyon, AZ
East Phoenix Arizona Homes

Gee -- never talk about which zip codes are "best" -- a sure way to be in trouble.

Mar 15, 2009 03:12 PM
Kim Dean
www.GoSimplyTexas.com - McKinney, TX
Simply Texas Real Estate - Broker/Owner

I like to refer them to zipskinny.com. The site has demographics for any zip code you enter and you can compare them side by side too. This way them can look up what they want to know without me trying to decipher what they are really asking, thus getting into deep trouble for.

Mar 15, 2009 03:56 PM
Sharon Alters
Coldwell Banker Vanguard Realty - 904-673-2308 - Fleming Island, FL
Realtor - Homes for Sale Fleming Island FL

So what do they want, Beverly Hills 90210? That is a question fraught with lawsuit - maybe it's someone from Fair Housing checking up on us.

Mar 15, 2009 04:10 PM
Tricia Jumonville
Bradfield Properties - Georgetown, TX
Texas REALTOR , Agent With Horse Sense

When the question of schools comes up, I point out that the school that my son attended that was excellent for him would have been a disaster for my daughter, and vice versa, so if it can vary that much in the same family, what's a "good" school for someone else's children is something only they can determine, and that only by actually visiting the schools in question.  Ratings they can find online, and there are many places online where they can go to find comments by actual parents of children in those schools who DON'T happen to be real estate agents. 

I never talk about what neighborhoods to avoid.  I WILL tell them which neighborhoods are near the lake, if water sports are their thing, or near hiking or horseback riding trails, if that's their interest, but as far as I know, boaters and equestrians are not protected classes. 

"Good" and "bad" are SO subjective, there's no way to answer the question accurately, never mind in compliance with Fair Housing laws! 

 

Mar 15, 2009 04:14 PM
John Novak
Keller Williams Realty The Marketplace - Las Vegas, NV
Henderson, Las Vegas and Summerlin Real Estate

Well done with your response, Randy! I wonder if Trulia has a procedure in place to remove the replies that violate fair housing guidelines.

Mar 15, 2009 04:17 PM
Randy Hooker
Dreamcatcher Realty / Greater Phoenix Area - Gilbert, AZ
Gilbert, Chandler, Mesa, Queen Creek

Michelle ~ Thank you!

Bob & Carolin ~ For sure!  I just tell them to avoid Gold Canyon, no matter what!   LOL

Kim ~ good advice!  And that site sounds like it would be good for a diet, too!   ;-)

Frank & Sharon ~ I don't think most folks are looking for 90210 that ask those kinds of questions.  In fact, I suspect that most of them are well-intentioned.  What's dangerous is the response by their agent!

Tricia ~ That 's a great response!  And a very diplomatic way to respect the question but point them in the right direction.

John ~ Not that I know of!  But I really can't speak for Trulia.  They do have HUGE traffic, though, and given professionailsm and wisdom, an agent could very well have some great opportunities there.

Mar 15, 2009 04:30 PM
Don Anthony
Don Anthony Realty ~ www.DonAnthonyRealty.com - Charlotte, NC
Charlotte & Triangle NC Discount Realtor

Glad you stayed away from answering with your opinion.  What I think is "good" may be a far cry from what the buyer thinks is good.

Mar 15, 2009 06:02 PM
Dave and Jenn Snell
Maxfield Real Estate - Alton, NH

Used car dealers and agents- I dislike being lumped into the same category, but some agents perpetuate the image.

Mar 15, 2009 10:02 PM
Paul Francis
Francis Group Real Estate - Las Vegas, NV
Las Vegas Real Estate Agent - Summerlin Homes

I've come across similar scenarios on Trulia... Should be renamed from "Real Estate Pro" to "Real Estate Novice".

Some of the answers over there just make me shake my head...

Mar 15, 2009 11:37 PM
Brien Berard
Remax Professionals Laurel MD - Laurel, MD
Maryland Real Estate Agents - Laurel Real Estate

Unbelievable!  With all the information out there about what we can and can not say, agents are still acting ignorant.  I too get asked this question all the time.  I simply reply that Fair Housing will not let me discuss that issue with you.  I encourage them to look on line for that information.

Mar 16, 2009 01:34 AM
Cameron Wilson
Labrum Real Estate - Murrieta, CA
The Short Guy - Murrieta,Temecula,Menifee Californ

Good answer Randy in pointing that person in the direction to places to find answers for their question. Who defines a question of that type?

Agents can and do get charged with "steering" potential buyers because of their lack of knowledge and the attitude of "knowing it all".

Mar 16, 2009 01:32 PM
Randy Hooker
Dreamcatcher Realty / Greater Phoenix Area - Gilbert, AZ
Gilbert, Chandler, Mesa, Queen Creek

Don ~ what's fascinating is that the people asking those kinds of questions don't seem to understand why we don't/won't answer them directly!  It's almost as if they think we have some sort of "inside track" on good vs. bad neighborhoods.

Dave & Jenn ~ looks like you read another post of mine.  Like it or not, we ARE stereotyped.  The only question is how you are going to deal with it.   ;-)

Mar 16, 2009 02:33 PM
Randy Hooker
Dreamcatcher Realty / Greater Phoenix Area - Gilbert, AZ
Gilbert, Chandler, Mesa, Queen Creek

Paul ~ I know what you mean, but doesn't it also give you an opportunity to be a sparkling diamond in the midst of a bunch of dirt clods?   :)

Brien ~ I used to just generically point people to the internet also, but there is a LOT of misinformation online.  I'm waiting for the day when somebody sues an agent for sending them "online" and then the client gets bad advice/info "online" and files a lawsuit against the agent!

Mar 16, 2009 02:39 PM
Randy Hooker
Dreamcatcher Realty / Greater Phoenix Area - Gilbert, AZ
Gilbert, Chandler, Mesa, Queen Creek

Cameron ~ right you are, my friend!  The fair housing cops are alive and well, and in need of 'fresh meat'.  Hey Cameron, are you going to accept my invitation to connect at LinkedIn?   ;-)

Mar 16, 2009 02:42 PM
Celeste "SALLY" Cheeseman
Liberty Homes - Mililani, HI
(RA) AHWD CRS ePRO OAHU HAWAII REAL ESTATE

Wonderful sound advice. Nope....we don't go there. I laughed....some would think certain aspects would be heaven...another hell. No kidding.

Just think of the kid who is practicing drumming for the high school band and a rocker comes in and startes blasting his tunes. lol!

Mar 16, 2009 05:56 PM
Randy Hooker
Dreamcatcher Realty / Greater Phoenix Area - Gilbert, AZ
Gilbert, Chandler, Mesa, Queen Creek

Sally ~ LOL!  There are sooooooo many examples of that kind of heaven/hell dichotomy.  Just seems that many times, buyers just think about them.  But isn't that why we as agents are supposed to be thinking?!?!?   ;-)

Mar 17, 2009 10:25 AM