Steering, redlining and blockbusting are illegal practices that make it more difficult for homebuyers to locate suitable properties for purchase. Real estate agents may engage in steering to increase sales and generate commission income.
Newsday conducted an investigation that revealed real estate professionals on Long Island often steer white homebuyers towards different communities than minority buyers (24% of the time). Click here for more on how to identify and report steering in real estate transactions.
It’s illegal
Steering is illegal, and real estate agents should refrain from engaging in it. Steering violates the 1968 Fair Housing Act which prohibits discrimination based on factors like race, religion, national origin, sex, gender family status disability and age among others. Steering also undermines equal professional service as it limits homebuyer options and can result in biased recommendations being given out by agents.
Real estate agent steering may occur unwittingly, yet can still have lasting repercussions. Take for instance a client who wants to buy in a Latin community; you might think they would feel more at home there and show only houses from that neighborhood – seemingly helpful but actually engaging in agent steering!
Blocking is another form of real estate agent steering. Historically, real estate agents and developers have employed this tactic to prevent Black homebuyers from purchasing properties in certain neighborhoods by telling white homeowners that Black families will lower property values quickly; as a result, their homes should be sold quickly or face further losses. Unfortunately, this practice is illegal and has serious repercussions for both individual homeowners and the wider Black community as a whole.
If you suspect your real estate agent of steering, it is in your best interests to seek another. An honest and ethical agent who won’t limit your home search or offer biased recommendations would be preferable. You could also file a complaint with HUD or your local fair housing office if discrimination has taken place against you.
Real estate agent steering should not occur and you should know how to recognize its signs when it does. These could include limited property options, biased recommendations or lack of information. If this occurs for you, find a new agent immediately by asking friends and family or searching online reviews.
It’s dangerous
Steering is an illegal form of housing discrimination under the 1968 Fair Housing Act. It occurs when real estate agents and brokers steer buyers toward or away from particular neighborhoods based on protected classes such as race, religion, family status or national origin. Redlining and blockbusting may also apply, although these terms don’t refer to it. Steering can often occur subtly or subtly and it can be hard to detect it yourself; that’s why it is crucial that individuals know what indicators to watch out for to report any suspected incidents to HUD immediately if necessary.
Brokers must tread carefully when answering clients’ queries in order to avoid being accused of steering, lest they risk accusations of steering. Even without intending to be biased, agents may end up unwittingly playing favorites; comments such as “I wouldn’t raise my family there” and “that neighborhood has too much crime” could be taken as signs that an agent has intentionally or unintentionally shown only homes in Latin communities based on an assumption they will prefer these areas as potential destinations.
Steering can restrict homebuyer options for minority homebuyers. Research indicates that homes located in minority-dominated neighborhoods tend to appraise for less, making it harder for minority homeowners to build equity and secure loans.
Real estate agents may steer clients for various reasons, from an earnest desire to help find them the perfect home to maximizing sales and increasing commission income. But no matter the motivation behind steering, it should always be avoided as a dangerous practice.
Steering is a widespread problem in the US, yet difficult to detect. It may be hard for an ordinary person to comprehend why an agent would choose to steer clients in certain directions – yet it does happen and its results can be devastating. Real estate agents who engage in such behavior are breaking the law and hurting their clients; those engaging in it should be punished accordingly.
It’s a waste of time
Real estate agents that attempt to steer buyers towards certain homes could face legal consequences for doing so. According to the Fair Housing Act, steering is illegal in the US. This law prohibits discrimination based on race, religion, sex, national origin, family status and disability when financing, selling and renting housing units. Common examples include telling clients a neighborhood is unsafe or that its school system falls below par. To prevent accusations of bias from their clients when answering inquiries about these properties.
Regrettably, many real estate agents continue to engage in steering practices despite laws against it. Steering can often go undetected; thus making it imperative to understand what constitutes steering and its potential effects on homebuyer experiences.
Steering occurs when real estate agents give biased information to clients looking for homes. This may take the form of restricting property choices for people of color or using coded language to disparage white neighborhoods; additionally, real estate agents may impose their personal biases and beliefs onto clients which leads to steering.
Real estate agent steering is an ongoing problem affecting many homeowners and potential buyers, so recognizing signs of it is crucial. If a real estate agent appears to be engaging in this practice it’s vital that their actions be reported immediately in order to put an end to it and help ensure homebuyers purchase homes that suit them perfectly.
Real estate agent steering can have a devastating effect on the housing market. To avoid it, it’s crucial to be familiar with all applicable laws regarding this issue and take proactive steps. One effective solution would be providing all suitable home options based on each client’s preferences and financial needs – this way avoiding legal trouble down the road.
It’s a big mistake
Steering is a serious issue within the real estate industry and needs to be dealt with accordingly. Steering is illegal and can have detrimental repercussions for buyers. Agents should understand what constitutes steering as well as how to avoid or recognize its presence to provide more ethical service for their buyers.
To avoid real estate steering, agents should avoid giving biased recommendations or narrow property options, and must respond carefully when answering questions; such as those concerning neighborhood schools or safety in specific areas; rather, they should refer buyers to third-party websites in order to prevent bias from impacting client decision making and steer them in an objective direction.
An effective way for real estate agents to prevent steering is to be transparent about commission rates when meeting with prospective buyers. Doing this will prevent buyers from receiving poor deals and becoming disgruntled, while helping the agent defend against accusations of steering.
Although the Fair Housing Act has helped limit steering complaints, the practice still exists today. Many real estate agents engage in steering due to internalized biases or an intent to maximize sales and commissions. Companies should train their agents against such conduct; unfortunately many fail to do so and leave employees susceptible to complaints of steering behavior.
Steering can often happen unknowingly and subtly without agents realizing it – for instance if an agent tells a client that the suburb they want to move into may not be ideal for families, that could constitute steering. Furthermore, agents should try not to make generalizations about neighborhoods based on race, religion or socioeconomic status when offering recommendations to clients.
Steering is a serious issue in real estate, and both buyers and agents should be mindful of its pitfalls. Any time an agent or broker attempts to steer buyers in any way, this violates the Fair Housing Act and can lead to legal action being taken against them.