What Realtors Can't Say...

Video on YouTube: https://youtu.be/Dq9bkQLlLOo

For someone who spends most days talking, did you know that there are things I’m not allowed

to say? And not just me but thousands of other Realtors also. Not things we shouldn’t say- there

are things we’re flat out not allowed to say that could spell disaster for me AND my clients. Join

me.

Hello friends, it’s Bill Warrell, your Bradenton and Sarasota Realtor and yes, there are really

topics I’m not allowed to talk about with my clients. Today my plan is to discuss what topics

those are, why we’re not allowed to talk about them, how it may affect buyers and sellers, and

how I talk about them anyway.

In 1968, as part of the landmark Civil Rights Act, Congress enacted the Fair Housing Act. The

Act was passed just one week after Dr Martin Luther King Jr’s assassination and aimed to

correct decades of discriminatory housing practices.

When first enacted, the Fair Housing Act prohibited discrimination based on race, national

origin, religion and sex. A 1988 expansion was passed to include disability and family status.

One of the prohibited practices was called red-lining. This term came about by the use of actual

red-lines companies would draw on maps indicating where they would and wouldn’t do

business. In these scenario’s, red areas were considered risky and were often predominantly

black neighborhoods. And while you may have a picture in your head of the types of individuals

creating these maps, they were actually created by the government itself for using in the

government’s HomeOwner’s Loan Corporation.

One of the other prohibited practices is what is called ‘steering’. Steering is the illegal practice of

influencing a buyer’s choice of housing based on a protected characteristic such as race,

national origin, religion, sex, disability and family status.

Let’s take a quick look at some examples:

Limiting property options: An agent only shows properties in neighborhoods that are

predominantly populated by people of the client's same race or ethnicity, while disregarding

listings in other areas that meet their objective criteria.

Making assumptions about comfort or suitability: An agent tells a client they would be "more

comfortable" in a certain area because of the existing residents' shared background or suggests

a specific floor in a building would be "better" for a family with children, thereby limiting their

options.

All of these are very real scenario’s that a Realtor comes across.

In simplest terms, a real estate agent typically cannot speak about the makeup of a particular

neighborhood as it relates to its people. That’s because providing an opinion or information

on a community’s residents can be discriminatory.

I’m not going to lie or sugar coat this- having these conversations can open us up to liability

however, NOT having these conversations can open us up to unhappy resentful clients. Believe

it or not, buyers and sellers don’t like surprises and, by me not being able to have open and

honest conversations with them, puts me in an compromising position.

So, how do I go about providing answers for my clients while not wading through the murky

waters of breaking any laws? Actually, it’s quite easy.

First, I gather in depth criteria from my clients about their needs and goals, wants and desires.

Doing so means that I can fully focus on what my client wants and there is no need to interject

my assumptions. I once had a buyer who indicated that faith was extremely important to their

family and their young children were very involved in youth activities with their church. This led

to further questions and I asked if the distance between their church and home was of

importance to which she responded, “yes! I almost forgot to mention that we’d like to live within

5 miles of our church.” If I had made an assumption, I could have been in violation but because

it was discussed as an item of importance by my client, I was in the clear.

Secondly, while opinions can be considered discriminatory, facts are not. I’m always quick to

provide and cite resources for clients in response to their questions. These include crime

mapping to see actual neighborhood crime rates, independent school grading sites that can

provide insights as to a school district’s reputation and local census reports that provide

information on other demographics that are protected by the Fair Housing Act.

And third, we always drive through potential neighborhoods so that buyers can form their own

opinions. Driving down the street mid-day and seeing no cars in the driveway can indicate that

many people are out of the house and it could be a working class neighborhood. Seeing bikes

and kids toys in the yard can indicate that they area is populated by lots of families. Seeing

boats, jetskis or high end vehicles could indicate that it’s an upper class neighborhood. And

seeing a couch and refrigerator on the front lawn could indicate that you’ve driven too far and

now you’re in Kentucky or West Virginia. Relax, I’m kidding!

The conflicting issue here is that, while this important legislation is meant to reduce

discriminatory action, agents are also bound by fiduciary responsibility for their client.

If you found this information helpful, insightful or just plain disliked it, let me know in the

comments below. Thanks for watching!