Fair Housing
What Is Steering in Real Estate?
Steering is the illegal practice of directing or guiding home buyers toward or away from certain neighborhoods, communities, or properties based on their race, color, religion, national origin, sex, familial status, or disability — protected classes under the Fair Housing Act. It is one of the most common Fair Housing violations real estate agents face.
How Steering Occurs
Steering can be overt (explicitly telling a buyer 'you'd feel more comfortable in this neighborhood') or subtle (only showing properties in certain areas to certain buyers, commenting on neighborhood demographics, emphasizing or downplaying community characteristics based on the buyer's protected class). Both forms are illegal.
Agents must show all properties that meet the buyer's stated criteria regardless of neighborhood demographics. The buyer has the right to choose where they want to live based on their own investigation of community characteristics — it is not the agent's role to make those judgments or steer based on them.
Steering FAQ
What are examples of illegal steering?
Showing minority buyers only homes in predominantly minority neighborhoods. Showing white buyers only homes in predominantly white neighborhoods. Telling a buyer 'that area has changed a lot lately' with racial implication. Warning a buyer they 'might not be comfortable' in a particular neighborhood. Emphasizing a neighborhood's racial, ethnic, or religious composition in any way that influences buyer choice.
What is the difference between steering and giving legitimate neighborhood information?
Agents can discuss schools (ratings, performance data), commute times, walkability scores, crime statistics from public sources, proximity to amenities — all objective, factual information. Agents cannot discuss or imply the racial, ethnic, religious, or demographic composition of a neighborhood. The line is: objective characteristics vs. protected class composition.
What are the penalties for steering?
A first Fair Housing violation can result in civil penalties up to $21,663 (adjusted periodically for inflation) by HUD. Additional penalties apply for repeat violations. Private lawsuits can result in compensatory and punitive damages. License revocation by the state is possible. NAR ethics violations can result in fines and suspension of membership.
How do you avoid steering as an agent?
Show all properties that match buyer criteria regardless of neighborhood demographics. Document your property searches and showings. Respond to all buyer requests for specific areas, even if you perceive a demographic reason for the request. Never comment on neighborhood demographics — refer buyers to public data sources if they ask. Take fair housing training annually.
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