Question for Cape Cod Todd (sales, real estate, low crime)

[macalan]

Hi there.

Saw a post of yours a bit ago, and just wanted some insight since you are a realtor.

You stated that you, as a realtor, cannot "steer" a client into a particular neighborhood, that that is against the law.

I'm curious what exactly that means?

I completely understand that you cannot "steer" someone to a certain neighborhood, or pick homes to show them only in certain areas. That might imply that you are "choosing" where they live/not live, and perhaps that speaks to discrimination - I don't know the ins and outs of the law you refer to.

But you are not doing the picking here. If I ask to see 4 homes that I picked, and after seeing them, ask you if there are any "problems" (my term, not yours) with any of the 4 neighborhoods - that I picked - and I am specific about the type of "problems" I am referring to - high crime rate, high violent crime rate - since these are facts, not opinions, and you are simply stating fact by answering my questions, what is the law that prevents that? You could say you can't define "high". But can you not provide facts/information and let ME decide if it's acceptable to me?

I can say that I would be very, very upset, if I were moving to an unknown area (from out of State), and bought a house with my hard-earned money only to learn after the fact that I was in a high crime area when I stated to a realtor that I wanted a "low crime" area. I would think that's potentially a source of more liability. You as a realtor are well aware of the "sketchy" areas. If I tell you I want a "safe" area, why in the world would you (a realtor, not you specifically) let me fall in love with - and perhaps wrongly buy - a house in a neighborhood where multiple burglaries/home invasions occur - only to learn that after the fact? Why, when I tell you I am alone and afraid of violent crime, would you not let me know that there have been numerous shootings in the neighborhood I am looking in? That to me seems irresponsible.

Out of curiosity, what else can't a realtor tell a client? If there are known problems with a house? Why is there not a law against "steering" clients to a house that is over their stated budget, hoping they'll fall in love with it and can "find" a way to buy it? Why is there not a law against taking a listing at a certain price for a client, knowing full well that you'll ask for price drops in a few week because there's you know there's "no way" the house will sell at the initial price set but you wanted the listing? Not saying you do this - I'm sure you don't as you have a good reputation here - but plenty of realtors do. And that isn't the initial question raised.

If a realtor can't answer questions honestly about the area/neighborhood a house is in - with fact - then why use a realtor? That is one of the benefits - I thought - of a realtor. To talk about the amenities of an area and answer questions about it. To HELP a client "choose", not "steer" by providing facts. There's a difference. I can go see houses myself - I don't need a realtor along to point out the "features", and I can hire an attorney to guide me through the sales process. To me, asking about crime rates is no different than asking how many grocery stores are within a 5 minute drive. Or where the nearest school is, or what kind of recreation facilities are nearby. Or where the nearest public transportation is. It's a known fact that exists at that moment in time about an area that helps a person decide if this is an area they could live in.

I know you have a license to protect, and must adhere to rules, regulations and laws, but I am very confused about this "law". It seems to tie your hands in doing what I thought realtors did - "helping" people choose (not steering them or choosing for them) their perfect house/neighborhood by providing FACTs about each that are relevant to them. Thanks.

[MikePRU]

Based on your post, I can tell you that you have an incorrect understanding of what the term steering means in this context. Steering is when a person belongs to a protected class and you tell them or influence them about where to live based on their being a member of that class.

Here's an example . . .

If people with the letter "A" on their forehead were a protected class and you said to me (or any real estate agent), I am a person with an "A" on my forehead. I want to live amongst other "A" people. Where in town do a lot of the "A" people live? The agent could not answer your question.

You can also turn it around . . . if you said I hate "A" people. Where in town do they live so that I can stay away from them? Again, the agent could not answer your question.

You raise an interesting point about the way you define steering though. As an agent, I can't deal in hyperbole either. Safe/unsafe for example are relative terms. I can however point you to crime statistics which are actual facts and you can base your decision on those. To some people, 10 murders a year is safe. To others, that's an unsafe town to live in.

[Shrewsburried]

Originally Posted by MikePRU

Based on your post, I can tell you that you have an incorrect understanding of what the term steering means in this context. Steering is when a person belongs to a protected class and you tell them or influence them about where to live based on their being a member of that class.

I encountered this during my home search and I found myself wishing the realtor had been a bit more blunt about the trajectory of a given town. I grew up in the metro-west/central MA area, so I am mostly aware of the compromises I was making when buying in a specific town; however, if I was from out of state I certainly could have used some less subtle nudging.

There is, in my opinion, a big difference between making overtly classist/racist statements and saying to a client "there are a lot of young upper-middle class/white collar families moving into town".

I guess what I am asking is - where does one draw the line between observed fact and leading/steering subjectivity?

[dpm1]

Why are subjective opinions on neighborhoods a bad thing? I have a hard time understanding the ultimate goals of this program.

[scratchie]

Because for decades, realtors used their "subjective" opinions to discourage black people from buying homes in white suburbs. I know you don't have a problem with that, but most people do.

[CaseyB]

As I understand it, "Steering" is when a realtor has minority clients and he/she pushes them to look at or consider properties in certain neighborhoods/sections based on the amount of other minorities who live there. An example would be only showing/recommending houses to black clients in the "black neighborhoods" instead of any property.

[Shrewsburried]

Originally Posted by scratchie

Because for decades, realtors used their "subjective" opinions to discourage black people from buying homes in white suburbs. I know you don't have a problem with that, but most people do.

A lack of financial mobility and pervasive racism prevented blacks from buying in desirable white suburbs. Not a band of nefarious "steering" realtors.

[scratchie]

Originally Posted by Shrewsburried

A lack of financial mobility and pervasive racism prevented blacks from buying in desirable white suburbs. Not a band of nefarious "steering" realtors.

It's been very well documented for decades. How do you think the "pervasive racism" manifested itself when a black couple asked a realtor to show them houses in some working-class suburb outside the city?

[Cape Cod Todd]

Hello
MikePru stated the answer to your question very well.

The law can be a tightrope over a mine field that we walk and one has to be very careful not to misstep or misspeak.

I have my RE license in Massachusetts so I don't know if the laws are different in other states but here they are very anti discriminatory and strive to protect people from predatory people.
We are required to attend continuing education classes to keep our license valid and most of them deal with policy and law. It is really scary out there with what a agent can be held accountable for. If we look at advertising a listing technically I should not write in the ad "a short walk to the beach" for example. The reason some people cannot walk and may feel excluded by my words and I might get in trouble if they pursue it with the board of realtors.

My partner in the Biz once had a client interested in a property in a somewhat seedy section of a town. She knew it but was reluctantly still willing to show it thinking when her buyer saw the neighborhood he would lose interest. The other agent who represented the listing saved them some time going there when he said "ask your client if they are Ok with being robbed, raped, stabbed and possibly murdered and then I will show the house." That other agent broke the law by volunteering that info but he got his point across though he wasn't representing his seller very well.

Steering is against the law but providing all the information to a client so they can make an informed decision is part of my job. A client can also ask for my point blank opinion but one needs to be very careful in answering. You never know how your seemingly innocent words will be perceived. The state also sends out testers now and again to make sure we are following the laws.

There is a saying in our business "Be the source of the source" . If you are concerned about crime, here is the number to the police and website address of crime statistics etc... Is this property in a flood zone? here is a link to maps and we can go to town hall and pull the plot plan, etc....

I also feel with most agents/ clients as the professional relationship develops so does the personal one. Many of our past clients are now friends and I would not have wanted to "steer" them wrong.

[Cape Cod Todd]

Originally Posted by CaseyB

As I understand it, "Steering" is when a realtor has minority clients and he/she pushes them to look at or consider properties in certain neighborhoods/sections based on the amount of other minorities who live there. An example would be only showing/recommending houses to black clients in the "black neighborhoods" instead of any property.

That is a good example CaseyB. The realtor might be thinking he is doing a good job by putting a black buyer in a black community and he may also think he is saving the guy some money because houses are more expensive in the suburbs but that decision is not up to the agent.

Think about a fat guy going into a grocery store and the clerk takes him to the potato chip, soda aisle even though he is interested in checking out the produce.


Everyones money is green and that should be the only thing the dictates where someone can live. If someone has a pre approval letter for up to $400,000 I am not going to waste their time or mine by showing them properties for $1,000,000.