First Person: 10 Questions You Can Ask Real Estate Agents -- but We Can't Answer

Understanding the Limitations of What Your Agent Can and Can't Divulge

Deborah A. Rutter
*Note: This was written by an Associated Content Contributor. Sign up to start publishing your own finance articles.

As real estate agents we get asked all sorts of questions... and the number of questions goes up, especially if you're like me and represent buyers as well as sellers. As a licensed Virginia associate broker (and licensed broker in Maine, too, inactive), I field questions from buyers that I used to ask, too:

1) Are there kids in this neighborhood?
2) What is the crime like around here?
3) Which school is the best?
4) How do people in this area vote?
5) Is this a liberal/conservative area?
6) Where is the nearest church/temple/synagogue/mosque?
7) Are there sex offenders nearby?
8) Do (insert ethnic identifier) live around here?
9) Is this a good neighborhood for families?
10) Is the buyer (white, black, young, single, old, gay, married, etc.)?

Believe or not, NONE of these are questions that can be answered by a licensed agent!

As an industry, we don't make it easy, either, since many agents DO answer those questions and have for a long time, even though it's a no-no. Most consumers working with an agent (especially a buyer agent) expect that these are questions that are simple to ask, easy to answer. And buyers expect answers to those questions. Who wouldn't? After all, isn't that what an agent is supposed to do? Help you make a smart decision by answering questions about a huge financial undertaking?

Agents cannot lie to buyers and sellers (though they can omit a number of details if they are a seller-agent, talking to a potential, unrepresented buyer). Agents must reveal materials defects about all properties regardless of who the agent is working for (the buyer or the seller). And agents must account for and keep track of any monies, for things like earnest money deposits.

But the sticky questions? The rule of thumb is to "be the source of the source." What does that mean? It means that agents provide the link between the question-asker and the question-answerer; whether that means a phone number, a contact name, a website address, a brochure...agents provide the link. And that's for two reasons: 1) to reduce liability for the agent by removing them from the conversation since no agent knows or can memorize everything about all situations, all the time and 2) agent cannot provide information or even appear to provide information that shows bias.

What does that mean? If you ask, "is this a quiet neighborhood?" and I grew up in downtown Manhattan, and you grew up in rural Iowa, 20 miles from your nearest neighbor, who do you think is going to have the right answer? Right-no one. Many questions asked by buyers are subjective so there are no steadfast answers.

Agents specifically cannot 'steer' clients by making assumptions about where someone wants to live because of who they are (or who we think they are, or appear to be). If my clients are an ethnic minority, I cannot suggest-at all-that they might be more 'comfortable' in an area with other like-minorities. Our mandate is to let the client direct us toward narrowing criteria, not suggest it. Our job is to provide access to all properties for which the client is approved to purchase.

This is my favorite: "I know you can't answer this, but..." And to that I reply, "You're right... I can't answer that, but..."

More from this Contributor:
Understanding Fees of a Listing Agent in Real Estate Sales when Selling Your Home
Understanding Functional Obsolescence in Residential Real Estate
Understanding Why Appraisals Are One of the Most Important Parts of a Home Sale

Published by Deborah A. Rutter

As a licensed Virginia broker, I specialize in helping new and veteran buyers and sellers create successful transactions by teaching, showing and killer negotiation. My clients complete successful transa...  View profile

  • Buyers and sellers often have questions that real estate agents cannot answer legally, but do
  • Agents should be the 'source of the source' of information
  • Doing homework about the state, region, area, neighborhood and street is critical to any move
State laws vary regarding what sellers must disclose about a property...stigmatized property in which there was a murder, known ghosts or other paranormal activity must be divulged to potential buyers, depending on the state.

To comment, please sign in to your Yahoo! account, or sign up for a new account.