National Real Estate Practice Exam

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Which of the following is a correct definition of steering?

Encouraging buyers away from neighborhoods based on their financial readiness
Directing buyers to homes that fit their ethnicity or nationality
Avoiding neighborhood recommendations to prevent bias
Promoting buy offers in competitive neighborhoods

The correct answer is: Directing buyers to homes that fit their ethnicity or nationality

Steering is defined as the practice of directing potential homebuyers or renters towards or away from certain neighborhoods based on their race, ethnicity, or other protected characteristics. The essence of steering is to influence individuals' choices based on their demographic background, which can perpetuate segregation and discrimination in housing. In this context, the focus on guiding buyers to homes that align with their ethnicity or nationality embodies the very definition of steering, highlighting the inappropriate influence that such practices have on fair housing and the rights of individuals to choose where they live without bias or coercion. Understanding this concept is critical, as it underlines the importance of adhering to fair housing laws, which are designed to eliminate discriminatory practices in real estate transactions.