Steering
An illegal practice where a real estate agent directs buyers toward or away from certain neighborhoods based on the buyer's race, religion, national origin, or other protected characteristics.
Full Definition
Steering is an illegal fair housing violation in which a real estate licensee guides prospective buyers or renters toward certain neighborhoods — or discourages them from others — based on the race, religion, national origin, sex, disability, familial status, or other protected characteristics of those buyers. Steering can be overt (telling a Black buyer that a neighborhood 'might not be comfortable' for them) or subtle (only showing a buyer of one race homes in certain areas without explicitly explaining why). Steering violates the Fair Housing Act because it limits where people of protected classes can live, perpetuating residential segregation. Agents should show buyers properties that meet their stated criteria (price, size, location) without regard to the demographics of the neighborhood.
Real-World Example
An agent shows all Hispanic buyers homes only on the east side of town and never in the new subdivision on the west side, without the buyers requesting this. This is steering, even if the agent believes they are doing the buyers a favor.
How Steering Appears on the Real Estate Exam
Common question types, tested concepts, and what to watch out for
Steering doesn't require overt statements — it can be entirely behavioral (only showing certain properties, emphasizing certain neighborhoods). Both positive steering (toward) and negative steering (away) are illegal. Always show buyers properties that match their criteria, not the demographics of their neighborhood.
Related Terms
More Fair Housing & Law Terms
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