Steering occurs when a real estate agent directs their client towards or away from neighborhoods based on protected characteristics that fall under the Fair Housing Act, such as race, religion or family status. Steering can include things such as race, religion, family status and more.

Steering is illegal and brokers must be wary of it in order to avoid lawsuits. But what exactly does steering look like?

Blockbusting

As a real estate agent, you must treat all your clients equally and without discrimination. Under the Fair Housing Act, it is unlawful to limit home buying opportunities based on one or more protected categories like race, religion, national origin, sex, familial status disability or gender identity. Steering occurs when an agent restricts a client’s search options by making assumptions about them that show them homes accordingly despite best intentions – an unfair action the Fair Housing Act was created to address.

Steering is typically associated with race; however, other protected characteristics could be used as grounds for steering such as an agent assuming that a potential black buyer only wants a home in an African American-centric neighborhood and showing them accordingly; or telling families with lower performing schools they won’t find anything suitable and therefore shouldn’t look there at all.

Blockbusting was an illegal racially motivated practice which first gained traction during the 1960s. Investors hired African American men to impersonate home buyers or business solicitors while convincing homeowners their neighborhood was experiencing rapid racial transformation and property values would decline due to this. Finally, investors would purchase properties from homeowners at discounted rates, in order to sell them onto African American buyers at a profit.

Blockbusting was intended to make it easier for African American homebuyers to move into white neighborhoods in order to escape high rents, subpar schools, and overcrowded conditions. At that time, housing discrimination was widespread throughout America – especially urban communities where it was practiced by real estate agents, mortgage brokers, and banks.

Steering by race remains an issue in the housing industry. To combat it, real estate professionals should ensure they provide only objective information about neighborhoods to their clients, while becoming aware of unconscious biases they might possess and address them accordingly. The National Association of Realtors teaches its members about Fair Housing practices that prevent steering.

Redlining

Redlining, or housing discrimination, refers to the illegal practice of real estate agents restricting housing options based on race, religion, gender, familial status or national origin for homebuyers. Redlining was widespread prior to the Civil Rights Movement and contributed significantly to segregation throughout America. Thanks to the Fair Housing Act of 1968 which made redlining illegal, this systemic discrimination has since been dismantled – though steering still persists today despite laws against it.

Steering can take many forms and may not always be intentional, yet if it violates the Fair Housing Act you could face legal action and substantial fines or even license revocation for steering clients against their will. To make sure this does not occur to ensure clients do not fall prey to this form of bias ensure you communicate their housing needs to them and present every available property that fits within their criteria.

Assume a buyer comes in seeking a safe neighborhood with good schools. Presuming they’re African American, you may assume they would only want to look in areas inhabited by other African Americans and only show homes for sale there – this constitutes illegal steering as it limits homebuyer choices and violates the Fair Housing Act.

Though many situations are easily identifiable, not every instance is straightforward. Subtle remarks such as suggesting a suburb “isn’t great for raising families” or comments suggesting certain neighborhoods are too dangerous may cross a boundary of inappropriateness.

If you are uncertain as to whether you’re engaging in any form of discrimination, reaching out to HUD or your local fair housing office for guidance could help. Furthermore, consulting a qualified real estate attorney would ensure compliance with law. In addition, finding an experienced broker who recognizes the significance of treating all clients equally could also prove helpful; references from past clients would speak volumes. Finally, your job as an agent lies in helping buyers arrive at an acceptable closing table, which requires knowledge of local laws as well as commitment towards equal opportunities for all buyers.

Assumptions

Real estate agents who make assumptions about what their clients want can be seen as practicing steering. For instance, when showing African American buyers homes exclusively located in predominantly black neighborhoods may constitute illegal racial steering. Other forms include providing different information to white and minority homebuyers. For instance, an agent might tell white homebuyers of break-ins while leaving out such details from minority buyers.

Some real estate agents intentionally steer their clients, while others unwittingly do it unknowingly. When asked by buyers about school systems and area safety, an agent could respond by saying, “I heard that this neighborhood has poor schools.” While this statement might be accurate, it could also limit homebuyer options or discriminate against them. An agent should point buyers towards impartial third-party websites with information regarding school districts and safety statistics.

Steering can also violate protected classes. For instance, an agent cannot direct Hispanic homebuyers towards neighborhoods with high concentrations of Mexican immigrants as this would constitute an example of racial steering. Furthermore, an agent who represents homebuyers looking for family-friendly environments shouldn’t force these buyers into neighborhoods with more family units since this would constitute familial steering.

Steering is an issue in real estate that significantly restricts access to homeownership for many. That is why organizations like NAACP are making this an issue they focus on, calling on legislators and real estate agents alike to end this practice as well as working to educate consumers about selecting an agent who won’t steer based on factors like race, national origin or familial status – these actions aim to make housing market more equal for everyone.

Commitment

Real estate agent steering is one of the ethics topics homebuyers, sellers and brokers should be mindful of. Steering is illegal and discriminatory as it involves steering people away or towards neighborhoods based on race, religion, national origin, sex disability status or familial status. Once widespread this practice was outlawed under 1968’s Fair Housing Act; since then however the National Association of Realtors have worked diligently to inform its members about this law as well as identify personal biases which might cause steering.

Steering can take place in various ways. It could involve telling white homeowners that minority families are moving into their neighborhood and will reduce property values, or it could take place through less obvious methods such as telling single women “I have heard that schools in that area aren’t great.” To be ethical agents should remain honest in their information delivery to buyers as well as refer them to third-party websites for quality or safety concerns if required.

One way to avoid steering is listening carefully to the goals and concerns of your client. For instance, if they are parents, ask whether they would prefer living in a safe neighborhood and what the demographic makeup of their area might be like. Listening carefully will allow you to provide them with the most accurate information and services possible.

Brokers’ responsibility is to ensure all team members comply with fair housing laws, so any agent directing buyers in any way risks legal action from potential customers and may file a formal complaint with HUD or local fair housing agencies if this has occurred.

Fact is, real estate discrimination persists despite the Fair Housing Act. Therefore, all brokers should understand this issue, be familiar with applicable laws, and train their team on ways to avoid steering or any form of manipulation in any transaction.

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