What is meant by Steering in Real Estate: What Prospective Homebuyers Should Know

In the context of real estate, "steering" refers to the discriminatory practice of guiding or influencing potential buyers or tenants toward or away from certain neighbourhoods (like a land sale in Kottawa or a Homagama land sale) or properties based on their protected characteristics, such as race, religion, nationality, familial status, or disability. It involves providing biased or misleading information to manipulate someone's housing choices.

Steering in the Sri Lanka real estate market is illegal, as it is in many countries, including the United States, under fair housing laws that prohibit housing discrimination. These laws aim to ensure equal access to housing opportunities for all individuals and protect them from being treated unfairly or denied housing based on their personal characteristics.

Real estate professionals, such as real estate agents, brokers, or property managers, have a responsibility to uphold fair housing laws and provide equal service to all clients regardless of their protected characteristics. They should not engage in steering practices or direct clients toward or away from certain neighbourhoods or properties based on discriminatory factors.

If someone believes they have experienced steering or any other form of housing discrimination, they can file a complaint with the appropriate government agency responsible for enforcing fair housing laws.

What should prospective homebuyers know about steering?

Prospective homebuyers should be aware of the following key points regarding steering:

• Illegal Practice: Steering is an illegal practice under fair housing laws in many countries, including the United States. It is prohibited to guide or influence potential buyers or tenants toward or away from specific neighbourhoods or properties based on their protected characteristics.

• Protected Characteristics: Fair housing laws protect individuals from discrimination based on race, colour, religion, sex, national origin, familial status, or disability. It is illegal for real estate professionals to steer buyers away from certain areas or properties because of these protected characteristics.

• Equal Housing Opportunity: Everyone has the right to equal access to housing opportunities. Real estate professionals should treat all clients equally and provide the same level of service regardless of their protected characteristics.

• Information Transparency: Real estate professionals should provide accurate and unbiased information about properties and neighbourhoods, allowing buyers to make informed decisions based on their preferences and needs. They should not withhold or manipulate information to steer clients in a particular direction.

• Fair Housing Laws: Familiarize yourself with the fair housing laws in your country or region to understand your rights as a homebuyer. In the United States, the Fair Housing Act protects individuals from housing discrimination, and similar legislation exists in many other countries.

• Reporting Discrimination: If you suspect that you have been subjected to steering or any other form of housing discrimination, you can file a complaint with the appropriate government agency responsible for enforcing fair housing laws. They will investigate the matter and take appropriate action.

• Seek Professional Assistance: When searching for a property, it is important to work with a reputable and ethical real estate professional who understands and upholds fair housing laws. They should prioritize your needs and preferences while providing objective advice and assistance throughout the homebuying process.

By being aware of steering and understanding fair housing laws, prospective homebuyers can protect their rights and make informed decisions when purchasing a property.

How can you avoid being "steered" when purchasing real estate?

To avoid steering when purchasing real estate, consider the following steps:

• Educate Yourself: Take the time to research and educate yourself about different neighbourhoods, property values, amenities, and local market conditions. This knowledge will empower you to make informed decisions and rely less on the guidance of others.

• Define Your Needs and Preferences: Determine your specific requirements and preferences for a property, such as location, size, amenities, and budget. Having a clear understanding of what you are looking for will help you stay focused on your own criteria rather than being swayed by others.

• Work with Multiple Agents: Instead of relying on a single real estate agent, consider working with multiple agents who are knowledgeable about different areas. This will allow you to gather a variety of perspectives and information without being limited to one person's opinions or biases.

• Request a Wide Range of Options: Ask your real estate agent to provide you with a wide range of property options that meet your criteria. This ensures that you have a broader selection to choose from and reduces the risk of being steered towards a specific area or property.

• Conduct Independent Research: Utilize online resources, public records, and other sources of information to conduct independent research about neighbourhoods and properties you are interested in. Look for objective data such as crime rates, school quality, transportation options, and property appreciation trends.

• Trust Your Gut Feeling: While it is important to gather information and advice, ultimately, trust your own instincts and judgement. If something feels off or you suspect biased guidance, do not hesitate to seek a second opinion or consider alternative options.

• Be Assertive: Clearly communicate your preferences, needs, and expectations to your real estate agent. Make it known that you expect fair and unbiased treatment throughout the homebuying process. If you encounter any concerning behaviour, address it directly with the agent or consider finding a new agent who prioritizes your interests.

• Document Communication: Keep a record of all interactions, emails, and documents related to your property search. This documentation can be helpful in case you need to address any concerns or file a complaint about potential steering or discrimination.