Navigating the real estate market can be an exciting yet complex journey. One term often surfaces in discussions about fair housing practices is “steering.” Understanding what steering is, how it affects the real estate process, and the legal implications can help homebuyers make informed decisions and advocate for fair treatment.
What is Steering?
Steering in real estate refers to the practice where real estate agents or brokers influence a buyer’s choice of neighborhoods based on race, ethnicity, religion, or other protected characteristics. This discriminatory practice can subtly or overtly direct home buyers towards or away from certain areas, thereby perpetuating segregation and inequality in housing.
How Steering Manifests
Steering can take various forms, some of which might be less obvious to the untrained eye. Here are some common ways it can occur:
- Neighborhood Recommendations: An agent might show homes only in specific neighborhoods to buyers based on their race or ethnicity, excluding areas that could also meet their criteria.
- Information Sharing: Providing selective information about schools, crime rates, or community demographics to influence a buyer’s decision.
- Availability of Listings: Steering can also occur when agents selectively present or withhold listings, showing certain properties to specific clients while hiding others.
Legal Implications of Steering
Steering is illegal under the Fair Housing Act of 1968, which prohibits discrimination in housing based on race, color, national origin, religion, sex, familial status, or disability. The law ensures equal housing opportunities for everyone, regardless of their background. Real estate professionals engaging in steering can face severe penalties, including fines, license suspension, and legal action.
The Impact of Steering
Steering has long-term consequences for communities and individuals. It perpetuates segregation, limiting diversity and access to resources such as quality education, healthcare, and employment opportunities. Steering can result in limited housing choices for homebuyers, potentially leading to dissatisfaction with their living situation and investment. It also undermines trust in the real estate profession, as buyers may feel manipulated or unfairly treated.
How Homebuyers Can Protect Themselves
As a homebuyer, being aware of steering and taking proactive steps can help ensure you receive fair treatment throughout the buying process. Here are some tips:
- Educate Yourself: Understand your rights under the Fair Housing Act and familiarize yourself with the signs of steering.
- Conduct Independent Research: Find homes using various platforms and independently gather information about different neighborhoods.
- Ask Direct Questions: When working with a real estate agent, ask specific questions about why certain areas or properties are being recommended.
- Document Interactions: Keep records of communications with your real estate agent, including emails and notes from conversations.
- Report Suspected Steering: If you suspect steering, report it to local housing authorities, fair housing organizations, or the Department of Housing and Urban Development (HUD).
Promoting Fair Housing Practices
Real estate professionals play a crucial role in promoting fair housing practices. Agents and brokers should:
- Undergo Training: Regularly participate in fair housing training to stay updated on laws and best practices.
- Provide Equal Service: Offer all clients the same level of service and information, regardless of their background.
- Be Transparent: Clearly explain the basis for property recommendations and avoid making assumptions about clients’ preferences based on protected characteristics.
- Foster Inclusive Communities: Support initiatives that promote diversity and inclusion in housing.
Conclusion
Steering in real estate is a discriminatory practice that undermines the principles of fair housing. Homebuyers can ensure they are making informed and unbiased decisions by understanding what steering is and taking steps to protect against it. On the other hand, real estate professionals are responsible for upholding fair housing laws and promoting equal opportunities for all clients. Together, we can work towards a more equitable and inclusive housing market.
