Steering in real estate transactions refers to what practice?

Steering in real estate transactions refers to the practice of guiding or directing prospective buyers toward or away from particular neighborhoods or areas based on their race, ethnicity, or other protected characteristics. This is considered discriminatory and is prohibited under the Fair Housing Act.

The correct choice highlights the unethical nature of influencing buyers’ decisions based on demographic factors rather than their personal preferences or financial capabilities. Such practices not only undermine the principle of equal opportunity in housing but also perpetuate segregation and discrimination within communities.

By contrast, other choices involve practices that are either unrelated to steering or represent different forms of discrimination. Providing cash incentives is more about enticing participation rather than guiding location choices; refusing to lend based on race is more directly about discriminatory lending practices; and encouraging minority homeowners to sell, while potentially harmful, does not involve the same directional influence as steering. Thus, understanding steering helps to recognize and confront discriminatory practices in real estate that can harm communities and individuals alike.