Unlocking the Basics: Understanding Steering in Real Estate

As someone new to the world of real estate, it can be overwhelming trying to understand all the terms and processes involved. One term you may have heard thrown around is steering. But what exactly does this mean?

Steering in real estate refers to the act of guiding or directing a potential homeowner towards or away from certain neighborhoods, based on their demographic background.

This unethical practice has been deemed illegal for decades but unfortunately, it still happens today. Let's explore more about what steering is, how it affects individuals and communities, and what you should know to protect yourself.

What Is Steering?

In simple terms, steering is the act of channeling homebuyers to specific neighborhoods or areas based on their race, ethnicity, religion, or even familial status. Real estate agents, loan officers, or other professionals who work in housing markets could potentially restrict access to parts of the city that are within someone's price range based on discriminatory practices. It is an unfortunate truth that discrimination in housing was prevalent before the Fair Housing Act of 1968 and persists to this day.

How Does Steering Affect Individuals and Communities?

The impact of steering is that it limits the housing opportunities available to people based on their backgrounds, creating segregation and inequality. This can cause self-fulfilling prophecies and stigmatization that prevails long after discriminatory practices have been eradicated.

In segregated communities, there are unequal access to resources, quality education, transportation, jobs, and health care, further perpetuating a cycle of poverty and social inequality.

How Can You Protect Yourself?

As a homebuyer, renter, or seller, you are entitled to fair and equal treatment under the law. You can protect yourself from steering by ensuring that you work with a reputable real estate agent who is familiar with the Fair Housing Act and takes it seriously. Ask for references and read reviews to ensure that your agent will be transparent with you and provide you with the same quality of service, regardless of background or income.

You should also do your research about the neighborhoods you are interested in and consider visiting them multiple times to experience the feel of the community. Take note of the available amenities, schools, and job opportunities to ensure they suit your needs and preferences.

Conclusion

Steering in real estate is a practice that limits the housing opportunities for individuals based on their background, perpetuating a cycle of segregation and inequity. As a homebuyer, renter, or seller, it is important to understand what steering is, how it can affect you and your community, and how to protect yourself. By working with reputable professionals and doing your research, you can be sure that you will find a new home in a neighborhood where you can thrive.

"What Is Steering In Real Estate" ~ bbaz

Introduction

In real estate, steering refers to the act of guiding prospective buyers towards or away from certain neighborhoods based on their demographic information. This practice is discriminatory and illegal under federal and state fair housing laws, yet it continues to occur in various forms. In this article, we will explore what steering means, how it works, and why it is harmful.

What Exactly Is Steering?

Steering happens when a real estate agent or broker tries to influence a buyer's decision to purchase or lease a property based on their race, ethnicity, religion, gender, familial status, disability, or other protected characteristics. The term steering comes from the fact that the agent is trying to steer the buyer in a particular direction, either towards or away from certain neighborhoods or properties.

Steering can take various forms, such as:

• Showing homes only in neighborhoods with people of the same race as the buyer
• Providing false or misleading information about certain areas to discourage buyers
• Refusing to show homes in certain neighborhoods or school districts
• Using coded language or stereotypes to describe neighborhoods
• Offering different terms or prices based on the buyer's identity

The Harmful Effects of Steering

Steering perpetuates discrimination and segregation in housing markets, deprives buyers of equal opportunity, and reinforces negative stereotypes about certain communities. It can also have long-lasting consequences for both the affected individuals and society as a whole.

For example, if a buyer is steered away from a diverse neighborhood because of their race or ethnicity, they may miss out on the benefits of living in a vibrant community. Over time, this can increase residential segregation and limit access to educational and economic opportunities. Similarly, if a buyer is steered towards a neighborhood with high levels of pollution or crime because of their income level or disability, it can have negative impacts on their health and well-being.

Legal Protections Against Steering

Steering is a violation of the Fair Housing Act, which prohibits discrimination in the sale, rental, and financing of housing based on the protected categories listed earlier. The act covers private and public housing providers, including real estate agents and brokers, landlords, and mortgage lenders.

If you believe that you have been a victim of steering, you can file a complaint with the U.S. Department of Housing and Urban Development (HUD) or your state fair housing agency. HUD investigates complaints of discrimination and can take legal action if necessary. You may also be entitled to compensation for any damages suffered as a result of the discrimination.

Avoiding Steering in Real Estate Transactions

If you are a real estate agent or broker, it is important to avoid any form of steering to ensure compliance with fair housing laws. Here are some tips:

• Treat all buyers equally and show them properties based on their preferences and needs, not their identity
• Use language that is inclusive and respectful of all communities
• Stay informed about fair housing laws and attend training sessions to enhance your knowledge and skills
• Have clear policies and procedures in place that prohibit discriminatory practices
• Monitor and review your business practices regularly to identify any potential bias or steering

Conclusion

Steering is a discriminatory practice that has no place in the real estate industry or our society as a whole. As real estate professionals, it is our responsibility to treat all buyers equally and ensure that they have access to housing opportunities regardless of their identity. By working together to combat steering, we can create more inclusive and diverse communities for everyone.

Understanding Steering in Real Estate: A Comprehensive Comparison

Introduction

Steering is a common term used in real estate, referring to the practice of directing potential homebuyers towards or away from particular neighborhoods based on their race, ethnicity, religion, or other protected characteristics. As a result, steering has been recognized as a discriminatory practice that undermines the fair housing rights of individuals and communities. In this blog article, we will explore the concept of steering in real estate, its legal implications, and how it affects buyers, sellers, and agents. We will also compare and contrast the different forms of steering and discuss best practices for avoiding steering in real estate transactions.

Legal Frameworks of Steering

Steering is prohibited by the Fair Housing Act (FHA), which prohibits discrimination in housing on the basis of race, color, national origin, religion, sex, familial status, and disability. The Department of Housing and Urban Development (HUD) oversees and enforces the FHA through its Office of Fair Housing and Equal Opportunity (FHEO).In addition to the federal laws, state and local jurisdictions may have their own laws and regulations regarding steering and discrimination in housing. For example, California's Fair Employment and Housing Act (FEHA) and Civil Code § 51.2 prohibit steering on the basis of sexual orientation, gender identity, age, and other characteristics. Other states may have their own fair housing laws that provide additional protections against steering.

Types of Steering

Steering can take many forms, some more subtle than others. Here are some of the most common types of steering in real estate:

1. Racial Steering

Racial steering occurs when a real estate agent or broker guides buyers towards or away from certain neighborhoods based on their race or ethnicity. This may involve showing white buyers homes in predominantly white neighborhoods, and suggesting that minority buyers look for homes in different areas.

2. Religious Steering

Religious steering occurs when a real estate agent or broker directs buyers towards or away from specific neighborhoods based on their religious affiliations. For example, an agent might suggest that a Jewish family look for homes in an area with a large Jewish population, or discourage Muslim buyers from considering homes near a local mosque.

3. Disability Steering

Disability steering happens when a real estate agent or broker discourages or limits access to properties that are suitable for persons with disabilities. This may involve suggesting that buyers with disabilities look for homes in different neighborhoods, or showing them only properties that are not accessible.

4. Familial Status Steering

Familial status steering occurs when a real estate agent or broker discourages or encourages buyers with children from living in certain neighborhoods. This may include showing families with children only homes in areas with other families, or suggesting that they avoid neighborhoods with fewer children.

5. Source-of-Income Steering

Source-of-income steering is a type of discrimination that is prohibited in some states, including California. It occurs when a real estate agent or broker refuses to accept or consider rental applications from tenants who use government subsidies, such as Section 8 vouchers.

How Steering Affects Buyers, Sellers, and Agents

Steering can have far-reaching consequences for all parties involved in a real estate transaction.For buyers, steering can limit their choices and prevent them from accessing the housing market on equal terms. This can result in higher price premiums for homes in certain neighborhoods, or inadequate housing conditions for families who are steered towards lower-quality areas.For sellers, steering can reduce the pool of potential buyers and lead to longer listing times or lower prices. This can also affect property values in entire neighborhoods, leading to a cycle of disinvestment and blight.For real estate agents, steering can result in litigation, fines, and damage to their reputation. It can also limit the growth potential of their business by reducing referrals, repeat clients, and community engagement.

Best Practices for Avoiding Steering in Real Estate

Here are some best practices for avoiding steering in real estate transactions:

1. Know the law

Real estate professionals should familiarize themselves with the fair housing laws at the federal, state, and local levels. They should also stay informed about the latest updates and legal precedents regarding steering and discrimination in housing.

2. Educate clients

Real estate professionals should educate their clients about fair housing and the risks of steering. This includes informing them about their rights and responsibilities under the law and encouraging them to consider a variety of housing options.

3. Use objective criteria

Real estate professionals should use objective criteria when assessing properties and making recommendations to clients. This may include factors such as location, price, size, and condition, rather than subjective characteristics such as race, religion, or income source.

4. Avoid stereotypes

Real estate professionals should avoid stereotyping and generalizations about individuals or communities. This means treating each client as an individual rather than assuming that they will have certain preferences or limitations based on their demographic characteristics.

5. Document all interactions

Real estate professionals should keep detailed records of all interactions with clients, including conversations, emails, and text messages. This can help protect them against false accusations of discrimination and provide evidence in case of a lawsuit.

Conclusion

Steering is a pernicious practice that undermines the principles of fair housing and equal opportunity. It can have serious consequences for buyers, sellers, agents, and communities, and it is strictly prohibited by federal, state, and local laws. By understanding the different forms of steering, its legal frameworks, and best practices for avoiding it, real estate professionals can help ensure a more equitable and inclusive housing market for all.

Factors	Steering	Avoiding Steering
Laws and Regulations	Prohibits steering in real estate.	Real estate professionals must familiarize themselves with fair housing laws.
Fair Housing Principles	Undermines principles of fair housing and equal opportunity.	Real estate professionals must educate clients about fair housing principles.
Criteria	Uses subjective criteria such as race, religion, or income source.	Real estate professionals should use objective criteria.
Stereotypes	Generalizations about individuals or communities based on demographics.	Real estate professionals should avoid stereotypes.
Documentation	No records of interactions with clients.	Real estate professionals must keep detailed records of all interactions.

Opinion

It is essential for real estate professionals to understand and avoid the practice of steering when working in the industry. Steering not only denies buyers from enjoying equal access to the market but limits the growth potential of real estate professionals. The best practices mentioned above should provide a foundation to recognize, identify and dodge such practice while being able to offer professional service to every individual.

Understanding Steering In Real Estate

When it comes to making decisions about real estate, there are several factors that must be taken into consideration. One of the most critical aspects is steering, which influences homebuying decisions, often unintentionally.Real estate steering refers to a series of practices that can influence an individual's choice of where to live, based on their race, religion, national origin, or other demographic characteristics. By understanding what steering is and how it works, you can make sure that your real estate decisions are not unduly influenced by external factors.

What is steering in real estate?

Steering in real estate refers to the act of guiding homebuyers towards certain neighborhoods or communities based on their demographic profile. This can be done through various means, such as selectively displaying homes on a website, offering biased advice or opinions, or excluding certain listings from search results.Real estate agents and brokers may unintentionally engage in steering, especially if they have unconscious biases. However, there are also instances of intentional steering, where agents try to limit the choice of neighborhoods that a client can consider based on their perceived demographics.

How does steering affect the real estate market?

Steering can have a significant effect on the real estate market by limiting the availability of housing options for buyers. If certain neighborhoods are systematically excluded from consideration based on the demographics of the potential buyers, this can lead to housing segregation and unequal access to housing opportunities.Moreover, steering can also impact property values, as neighborhoods that are more diverse or have a larger percentage of minority populations may be subject to lower demand and, consequently, lower prices. This can then perpetuate a cycle of discrimination and exclusion.

How can you recognize steering?

Recognizing steering can be challenging, as it often occurs subconsciously. However, there are certain signs to look out for, such as:- The real estate agent discourages you from considering certain neighborhoods without providing a valid reason.- You notice that the properties that are recommended to you match your demographic profile too closely.- The real estate agent does not provide you with ample information about all available options in the market.

How can you avoid being steered?

To avoid being steered, it is essential to be aware of the practices that agents use and to take steps to seek out unbiased advice. Some strategies include:- Conducting your research on neighborhoods and communities before consulting a real estate agent.- Asking for recommendations from other sources, such as friends or online forums.- Diversifying your search by working with multiple agents or brokers.

What should you do if you suspect steering?

If you suspect that you are being steered towards certain neighborhoods based on your demographic profile, you should speak up and ask for clarification. Additionally, you can report any suspected cases of steering to the local fair housing agency or the National Fair Housing Alliance.

The Bottom Line

Steering in real estate can have significant consequences for buyers and sellers alike. By understanding what steering is, how it works, and the steps you can take to avoid it, you can ensure that your real estate decisions are based on accurate information and not biased opinions.Remember that fair housing laws protect individuals from discrimination based on their race, religion, national origin, or other characteristics. If you feel that your rights have been violated in any way, contact your local fair housing agency immediately.

What Is Steering In Real Estate?

Welcome to our real estate blog! Today we'll be discussing a topic that affects many homebuyers and renters, yet is often overlooked: steering in real estate. Steering is the practice of guiding or directing clients towards or away from certain neighborhoods or properties based on various factors such as race, ethnicity, religion, or disability. Steering can impact not only the financial well-being of buyers and renters but also their quality of life.

In the United States, steering violates the Fair Housing Act, which was enacted in 1968 to prohibit discrimination in the sale, rental, and financing of housing based on protected classes such as race, color, national origin, religion, sex, familial status, and disability. The act applies to all types of housing, including private homes, apartments, public housing, and even vacant land.

Steering can occur in various forms, such as:

• Providing information about certain neighborhoods or properties based on the buyer's or renter's race, religion, or national origin
• Failing to show certain properties or neighborhoods to a client based on their protected class status
• Steering clients to areas that are predominantly populated by people of their own race, religion, or national origin

If you suspect that you have been a victim of steering or any other form of housing discrimination, you can file a complaint with the U.S. Department of Housing and Urban Development (HUD) or a federal or state fair housing agency. You may be entitled to financial compensation and other remedies if your complaint is upheld.

Real estate agents, brokers, and landlords have a legal and ethical obligation to treat all clients fairly and equally, regardless of their background. By law, they must provide equal access to all properties and neighborhoods and refrain from making any discriminatory statements or practices. Failure to comply with fair housing laws can result in fines, legal action, loss of license, and damage to their reputation.

One way to protect yourself from steering is to educate yourself about fair housing laws and your rights as a buyer or renter. By knowing what is legal and illegal, you can be better equipped to recognize and report any instances of discrimination. You can also seek the assistance of a fair housing organization or attorney if you have any questions or concerns about your housing search.

In addition, you can diversify your sources of information and advice when looking for a home, such as consulting multiple real estate agents, using online tools and resources, and visiting neighborhoods yourself. By expanding your options and perspectives, you can make a more informed and empowered decision that reflects your unique needs and preferences.

Steering not only harms individual clients and communities but also perpetuates systemic inequality and segregation. By taking a stand against steering and promoting fair housing, we can create a more just and inclusive society where everyone has the opportunity to live where they choose and thrive.

Thank you for reading our blog on What Is Steering In Real Estate. We hope it provided valuable information and insights. If you have any questions or comments, please feel free to reach out to us. Let's work together to ensure that everyone has access to safe, affordable, and fair housing.

What Is Steering In Real Estate?

What Does Steering Mean?

Steering in real estate is a term used to describe the practice of guiding homebuyers towards or away from specific neighborhoods or properties, based solely on an individual's personal characteristics or demographic data such as race, religion, national origin, or sexual orientation.

Is Steering Illegal?

Yes, steering is illegal under Fair Housing Laws. The Fair Housing Act prohibits discrimination of any kind, including steering, in selling, renting, and financing housing based on race, color, national origin, religion, sex, familial status, and disability.

What Are Examples of Steering in Real Estate?

Here are some examples of steering in real estate:

1. Telling a Hispanic family that a certain property is located in a predominantly Hispanic neighborhood, even though there might have been better options elsewhere.
2. Showing properties in less desirable areas to people of a particular race or ethnicity.
3. Refusing to show homes to families with children in certain neighborhoods.

How Can You Avoid Steering When Buying a Home?

To avoid steering when buying a home, you can take the following steps:

• Research the areas your real estate agent proposes to show you beforehand and let them know what neighborhoods you are interested in.
• If you feel uncomfortable with your agent's recommendations, speak up, and clarify what you are looking for.
• If you suspect that you are being discriminated against, report it immediately to the local fair housing agency.

What Do I Do If I Think I've Been a Victim of Steering?

If you think you've been a victim of steering, report it to the local fair housing agency. They will investigate your complaint and ensure that your rights have not been violated.