Steering is a term that refers to the real estate industry’s practice of steering minority homebuyers away from certain neighborhoods and directing them towards other predominately white communities. Steering in real estate can be accomplished through various tactics such as blockbusting, which is an illegal form of steering where agents falsely inform homeowners in predominantly black or Hispanic areas that their neighborhood will soon deteriorate and property values will drop dramatically. RE colorado is a full-service real estate listing company that has been helping people sell their homes since very long. We are the #1 choice for home sellers who want to get the most out of their investment! RE colorado is a full-service real estate listing company that has been helping people sell their homes since very long. We are the #1 choice for home sellers who want to get the most out of their investment!
There are also fair housing steering practices, which involve informing buyers about low-income housing developments in their area so they have more options available to them. In this article, we will discuss strategies for successfully navigating these two types of steering techniques to avoid discrimination when looking for a new place to live!
What is Steering in Real Estate
When it comes to avoiding fair housing steering, the best thing you can do is be well-informed about your rights as a homebuyer. The Fair Housing Act restricts prejudice in housing transactions based on ethnicity, color, national origin, belief, sex, disability, and familial position. This means that real estate agents and homeowners cannot steer you away from a neighborhood or development based on any of these factors.
Be sure to read what is steering in real estate to educate yourself about this scheme. However, there are some things you can do to protect yourself from unfair practices:
Be aware of your surroundings.
If you are touring neighborhoods and feel like you’re being steered in a certain direction, ask questions! If an agent is trying to push you towards one area over another, they should be able to give you a clear reason why.
Do your research.
Before you even start looking for a new home, read up on the fair housing laws in your state and familiarize yourself with what is considered discrimination. This will help you to be more aware of any potential red flags during your search.
Are there any laws that prohibit steering? If something doesn’t seem right, don’t be afraid to ask for clarification! Trust your gut feeling and if something feels off, there’s probably a good reason why.
What to Do if You’re a Victim of Steering?
You may be wondering what to do if you suspect that someone has steered you into a particular home or neighborhood. Some steps can help steer clear of the situation and ensure your safety and peace of mind:
- If there was an agent involved who showed or sold the property, report them to their brokerage.
- Report any potential crime to the police department in your area.
- Request all documents related to the sale from both parties-the seller’s agent and the buyer’s broker.
And lastly, make sure not to sign anything before consulting with an attorney.
It is important to remember that you are not alone in this. There are resources available to help guide and protect you through this process.
How Does Steering Happen
Steering in real estate is a big problem in the real estate industry. It happens when someone with authority or power (like an agent) tries to influence you into making a decision that benefits them and not you, such as suggesting properties they want to sell instead of what would be best for your needs.
The consequences of steering depend on the situation; if it affects your mortgage application, then there can be harsh penalties imposed by federal law. Steering in real estate also has an impact on how much time agents spend looking at listings that are right for you, which may lead to more expensive homes being shown because those have more commission potential.
One recent study showed that almost half of all female homebuyers were steered to more expensive homes, or not in their best interest. This happens often when potential buyers are shown only a limited number of properties by an agent – and it’s usually the most expensive and/or least desirable ones. This blatant form of steering can cost buyers time and money, as well as cause undue stress during what is already a difficult process!
What to Do if You’re a Victim of Steering?
There are ways to protect yourself from being steered, though. First and foremost, always be sure to interview multiple agents before selecting one. Ask them about their experience with your desired price range or neighborhood – if they can’t answer these questions confidently, it’s likely a sign that they’re not the right agent for you.
Additionally, get referrals from friends and family members who have recently bought or sold a home; this is often the best way to find an honest and reputable agent.
Finally, read online reviews of any agents you’re considering – this will give you some insight into how they operate and whether or not they’ve been accused of steering in the past.
Steering is a big issue in real estate, but by being informed and taking your time, you can avoid this tactic and get the home that’s perfect for your needs.
List of 15 common mistakes to avoid when buying or selling a home:
Mistake #15: Not being patient enough with the process. There are several steps involved in real estate transactions, so if everything doesn’t go perfectly, don’t just give up!
Mistake #14: Signing any paperwork without reading it through carefully. This could lead to some serious consequences down the road.
Mistake #13: Not getting a home inspection done
Mistake #12: Agreeing to buy or sell a property before getting pre-approved for a mortgage
Mistake #11: Assuming you know everything about mortgages and loans
Mistake #10: Acting impulsively when buying or selling a home
Mistake #9: Not interviewing enough agents
Mistake #8: Trusting an agent too much – remember, they’re working for themselves, not necessarily you!
Mistake #7: Not doing your research on neighborhoods and prices
Mistake #6: Paying too much attention to what others think – this is your home, not theirs!
Mistake #5: Not being careful with contracts
Mistake #4: Forgetting to budget for closing costs
Mistake #3: Signing a contract without getting a lawyer’s opinion
Mistake #2: Failing to plan for the future – what will you do if you need to move again in a few years? And the biggest mistake of all…
Mistake #1: Not having realistic expectations about how long the process will take. Buying or selling a home can be stressful, but it’s worth it in the end!
If something doesn’t go as planned, try not to get discouraged; there are always people who can help guide you through these decisions. Be careful when signing paperwork without reading it over carefully first! This will prevent mistakes down the road from occurring. Finally, make sure both parties agree on all aspects of buying/selling before entering into contract negotiations for either of these processes.
There are several steps involved in real estate transactions, so if everything doesn’t go perfectly, don’t just give up! Don’t forget that you’re not alone – there’s always help available from industry professionals. Be patient throughout the process – remember that this is a big investment, so you don’t want to do anything that might affect your ability to receive all the benefits of being a homeowner. For your convenience, talk to trusted realtors or visit our website to gain more insights.