Fair-housing laws prevent agents from talking about neighborhood demographics, and they often don’t want to discuss other details, such as crime stats. Luckily, the Web picks up where agents leave off.
By Amy Hoak, MarketWatch
Steve Roddel was walking through a house in Fort Wayne, Ind., when he wondered aloud whether there were any sex offenders living in the neighborhood.
Instead of commenting on her own, the real estate agent showing the home quickly pulled out her cell phone, connected to its Web browser and brought up Family Watchdog, a national sex-offender-registry Web site. Little did she know that she was standing with the site’s founder and CEO.
A real estate agent can be a wealth of information about a house. So a homebuyer who asks what crime is like in the neighborhood might be surprised when the agent defers the question, directing a client to the Web or local police instead.
“The Realtor will be the one that has the most contact from beginning to end. Because of that accessibility, the consumer feels that they can give them all the information that they need,” said Alex Chaparro, the president of the Chicago Association of Realtors.
But there are some pieces of information that an agent simply can’t speak about due to fair-housing laws, including demographic statistics. And they often prefer to leave some characteristics, such as the quality of the school district or crime stats, answered by other sources.
The conservative approach is often taken in order to avoid a lawsuit popping up in response to frank neighborhood talk, said Ralph Holmen, an associate general counsel of the National Association of Realtors. Agents are forbidden from giving information that could be considered “steering,” directing a client toward or away from a particular property in a discriminatory manner.
Some of this information will make or break a decision to buy. The quality of school systems, for example, has long been of importance to home-buying families. Fortunately, there are a variety of sources buyers can use to get at the information on their own.
Checking on the schools
Unless a realty agent has hard data at his or her fingertips, the agent may decline to answer school-district questions. Even if the agent is willing to share some information, a prospective buyer might want to do additional fact-finding before deciding on a home or which neighborhoods to consider.
A national database of school demographic information can be found on the National Center for Education Statistics Web site. Click on the “School, College, & Library Search” tab at the top in order to view data including a particular school’s student-to-teacher ratio or enrollment by race and ethnicity.
For a snapshot of academic performance and to compare schools, a prospective homeowner might browse the School Matters Web site, a service of Standard & Poor’s. “People who are really attracted to (School Matters) are people who are moving,” said Susan Shafer, the director of marketing and communications for Standard & Poor’s School Evaluation Services. “It’s a good starting point,” she said, but it still isn’t a substitute for an actual tour.
Another site, GreatSchools, offers similar tools. Some school districts and state departments also post information online. It might be worthwhile to look at an individual school district’s site, especially for large systems.
Learning the demographics
If agents don’t shy away from any other question, they most likely will when it comes to those regarding demographics — and for good reason. Fair-housing laws forbid issues of race or ethnicity to be a consideration in the minds of real estate agents, who mustn’t steer a client toward or away from a particular area based on the neighborhood’s makeup.
When Anne Kennedy, an agent in Austin, Texas, turns down a question about neighborhood demographics, clients “completely understand,” she said. She suggests searching the U.S. Census Bureau’s Web site for statistics about an area’s demographics; the bureau’ Quick Facts page breaks down the information easily, by city and county. “That would also show general socio-economic data,” she said.
“Walking” the neighborhood
Finally, even though there’s a wealth of information online, there are some questions best answered by walking or driving around the area and making a note of your observations.
In rural New Hampshire, which is most of the Lakes Region, most areas are not really considered “neighborhoods”, so it is more practical to plan to drive.
Several trips past the home at various points of the day, noting whether there are special parking restrictions marked on the street, will probably provide a more informed answer.