What Your Realtor Can't Tell You

Realtors can offer buyers a considerable amount of consolidated information but there are certain things that they simply cannot discuss with clients. Fair Housing laws define the role of a real estate agent as matching buyers with properties, not filtering information about local demographics, which is also known as “steering.”

Any qualified agent understands the principles behind the Fair Housing laws which prohibit discrimination in real estate transactions based on race, color, national origin, religion, sex, familial status and handicap. The laws are also intended to prohibit agents from helping buyers locate properties based on elimination of any of the protected classes, even at the buyer’s request.

It is these laws which limit the kind of information an agent can relay to a buyer and leaves many realtors hesitant to discuss anything other that a property’s physical characteristics. While enforcement of Fair Housing laws has improved how protected classes are treated in the housing industry, many diligent realtors realize that there is still room for improvement and avoid any topics that might compromise the laws. While it may seem that your agent is leaving you short handed on information, the reality is they are enforcing fair housing laws which is in everyone’s best interest.

Where does this leave buyers? The answer is they are responsible for their own research. When my brother and his wife were looking for their first home in a large city, he created a system to track crime himself. He simply stuck a color coordinated sticker on a map every time a murder or violent crime occurred, a quick and easy reference to look at when making their final decision on a property that didn’t involve their realtor.

There are plenty of other solutions for home buyers seeking answers about potential neighborhoods or communities. The internet is helping realtors avoid sticky subjects by offering consumers plenty of resources to help them research the topics that realtors can’t touch. School quality, crime statistics, socio-economic data and even less quantifiable information like a property’s psychological characteristics are available online or through local resources.

For instance, Family Watchdog is a site dedicated to providing a free, user-friendly search venue for statistics about sex offenders. While state sex offender registries are public records the process of obtaining the information can be difficult. Realtors are not allowed to offer information about sex offenders and can only tell you if you ask directly and the seller agrees to allow them to disclose the information.

Family Watchdog takes the hassle out of getting raw information on sex offenders, eliminating the middle man, the fees and search limits that state governments often incur. Visitors to the Family Watchdog site can simply type in an address or name and find comprehensive information on registered sex offenders in the area. For other crime statistics a buyer’s best bet is to get in touch with the local police department.

Realtors are not required to disclose information about psychologically impacted properties - sites on which crimes or other events occurred that do not affect the physical condition of the property. Information about homicides, felonies, suicides, deaths, the health condition of previous occupants and supernatural phenomenon can only be obtained from the homeowner and they have no responsibility to disclose this information unless asked directly. Even then most states don’t hold owners responsible for ghosts and sellers can refuse to disclose.

Some topics, like schools, can leave realtors a bit tongue-tied. Statistics like academic performance and student-teacher ratios are factual information but what constitutes a good school is really a matter of opinion – something your realtor can’t offer you. Instead, buyers can search School Matters or Great Schools to find out about schools nationwide.

The belief that realtors have all the information that home buyers want may be true. Most realtors establish themselves within a specific geographic location and do keep an eye on schools, the environment, the local economy and crime. However, buyers need to understand that the expertise of even the most well-informed realtor remains in real estate, real property. You wouldn’t ask your roofing contractor for directions just because he has a good view. It’s the same idea with realtors.

Your realtor can point you in the right direction and many realtors are compiling links on their websites to online resources for curious homeowners. Real estate websites often link to state portals where out of town buyers can take virtual tours, find out about the local economy, schools and environment. The Environmental Protection Agency (EPA) is also a good source for buyers concerned about a region’s environmental issues. The EPA offers a tool called EnviroFacts where users can find details about a region’s waste, water, air, toxics and radiation issues.

When it comes down to getting all the facts about a neighborhood or community, it's the buyer's responsibility. But just because your realtor abides by Fair Housing laws doesn't mean you are on your own. Talk to your realtor about the issues that matter to you to find out where to get the information they can't tell you. They've likely got links to the best sources for local information on their website and you should use them. The internet is an invaluable tool for consumers to get the statistics they need to make the decisions that are right for them.

*Note: The information in this article is general advice and not meant as a substitute for personal guidance from a financial advisor, real estate professional or legal counsel. Although the author is a licensed realtor, the advice given in this article does not constitute any client contract or agreement between the author and the user. The author is not responsible for any losses, damages or claims that may result from your decisions.