What is steering in Real Estate? - Dutch Yard

Steering in real estate is a complicated and often misunderstood concept. For some people, it’s a way to buy property without being exposed to the world of bidding wars and high prices. For others, it’s an unethical practice that takes advantage of vulnerable buyers. In this article, we will dive into the details of what steering is in real estate, why it happens, and how you can make sure you are not being taken advantage of as a buyer or seller. We’ll also explore some ethical considerations that agents should be aware of when dealing with potential clients. So read on to learn more about this important topic!

What is steering?

Steering is the illegal practice of encouraging or discouraging a home buyer or renter from considering a particular property based on their race, color, religion, sex, national origin, familial status or handicap. It’s important to remember that steering can occur even if there’s no intent to discriminate.

The history of steering

The history of steering can be traced back to the early days of real estate. In the early days, when people started buying and selling property, there were no formal rules or regulations governing the industry. This meant that anyone could buy or sell property without any training or experience.

As the industry grew, however, it became clear that some people were better at steering than others. The most successful real estate agents began to develop a reputation for being able to find good deals and get their clients the best possible prices.

Over time, steering became more formalized, and today there are many different types of steering strategies that real estate agents use to help their clients buy or sell property.

Steering in the real estate industry

The real estate industry is filled with a lot of jargon, and “steering” is one of those terms that gets thrown around a lot. So, what is steering in real estate?

In short, steering is the act of directing or encouraging a buyer or tenant to purchase or rent a property that meets the steering party’s interests, rather than the buyer or tenant’s own interests. A steering party can be anyone involved in the real estate transaction – from the agent representing the buyer or tenant, to the lender, to even the seller him- or herself.

Why would someone want to steer a buyer or tenant? Well, there are a few reasons. Maybe the agent representing the buyer or tenant stands to make more money if they purchase a particular property. Or maybe the seller wants to get rid of a property that they think is going to be difficult to sell. In any case, it’s important for buyers and tenants to be aware of the potential for steering so that they can make sure they’re getting into a property that’s right for them.

The Fair Housing Act and steering

The Fair Housing Act prohibits discrimination in housing and lending on the basis of race, color, religion, national origin, sex, disability, and familial status. Steering is a form of housing discrimination that occurs when a real estate agent or other housing professional directs a consumer to or away from certain neighborhoods based on any of these protected characteristics. For example, an agent may tell a black family that there are no homes available in the neighborhood they want to live in, but that there are plenty of homes available in a predominantly black neighborhood. This would be considered steering.

Conclusion

Steering in real estate can be an incredibly effective way to match clients with properties that are suitable for their needs. By staying up-to-date on the latest market trends and using innovative tactics, real estate agents can help buyers find the perfect home. Whether you’re a seller or buyer, understanding how steering works will help you make better decisions when it comes to finding your ideal property. With the right guidance, a successful transaction is just around the corner!