Best answer: What is steering and redlining in real estate?

What is an example of steering in real estate?

Steering occurs, for example, when real estate agents do not tell buyers about available properties that meet their criteria, or express views about communities, with the purpose of directing buyers away from or towards certain neighborhoods due to their race or other protected characteristic.

What’s the difference between steering and blockbusting in real estate?

Steering is guiding, encouraging, or inducing people in some way to move to or stay away from a certain area or neighborhood, and it’s illegal. Overt steering is easy to understand and avoid. … For example, if a couple asks to be shown houses “only in White neighborhoods” you can’t accommodate them.

What does the word redlining mean in real estate?

Redlining is the practice of denying a creditworthy applicant a loan for housing in a certain neighbor hood even though the applicant may otherwise be eligible for the loan.

What is an example of redlining?

While the best known examples of redlining have involved denial of financial services such as banking or insurance, other services such as health care or even supermarkets have been denied to residents.

THIS IS INTERESTING:  Do you get a check for equity when you sell your house?

Which situation is an example of steering?

Steering is when a real estate agent influences a homebuyer to purchase in certain communities based on their race, therefore limiting the buyer’s choices. Let’s look at a hypothetical example of steering: a white buyer and a Black buyer approach the same real estate agent looking to buy homes.

What is another name for blockbusting in real estate?

First and foremost, blockbusting, also sometimes referred to as “panic selling,” is a discriminatory and illegal real estate practice. It involves convincing property owners to sell their homes based on the assumption that a new neighbor will change the socio-economic makeup of the neighborhood.

What does blockbusting mean in real estate?

Blockbusting refers to the practice of introducing African American homeowners into previously all white neighborhoods in order to spark rapid white flight and housing price decline. Real estate speculators have historically used this technique to profit from prejudice-driven market instability.

What are the basic types of real estate investment?

5 Different Types of Real Estate Property Investments

  • Residential real estate. Residential real estate refers to any property used for housing. …
  • Commercial real estate. …
  • Industrial real estate. …
  • Raw land. …
  • REITs. …
  • Investing for the future.

What is the difference between steering and redlining?

Steering is the illegal practice of channeling home seekers to particular areas, either to maintain the homogeneity of an area or to change the character of an area, which limits their choices of where they can live. It is a form of redlining.

What is the best strategy to use when dealing with a tester?

What is the best strategy to use when dealing with a tester? Treat the tester as any other buyer.

THIS IS INTERESTING:  Can you sell real estate as is?

What is steering in leasing?

In its most basic form, steering refers to situations in which landlords discourage people from renting apartments at their property for a discriminatory reason. This is a violation of the Fair Housing Act (FHA), even if a landlord hasn’t imposed an outright ban on renting to certain types of people.