PSI Virginia Real Estate Practice Exam

What does steering in real estate refer to?

1. Encouraging buyers to buy properties in any neighborhood

2. Channeling buyers to specific neighborhoods based on personal preferences

3. Channeling prospective buyers to particular neighborhoods based on their demographics

4. Assisting buyers in finding properties based on price criteria

The correct answer is: Channeling prospective buyers to particular neighborhoods based on their demographics

Steering refers to the practice of directing potential homebuyers to certain neighborhoods based on their race, ethnicity, religion, or other demographic characteristics. This behavior is considered discriminatory and is illegal under the Fair Housing Act, which aims to eliminate barriers to housing based on these characteristics. By channeling buyers into specific neighborhoods based on their demographics, steering perpetuates segregation and undermines the fair and equal opportunity for all individuals to access housing in any community they choose. The purpose of fair housing laws is to promote equal housing opportunities, ensuring that all individuals can make choices regarding where they live without being influenced by bias or discrimination. The other options reflect general behaviors that do not inherently involve discriminatory practices. For instance, encouraging buyers to explore any neighborhoods or assisting them based on price criteria does not involve steering or discriminatory intent, while channeling buyers based on personal preferences may not necessarily align with demographic factors that would constitute unfair steering.