What does the term "steering" refer to in real estate?

The term "steering" refers to the practice of directing homebuyers toward or away from certain neighborhoods based on their race or ethnicity. This discriminatory action is intended to influence the location of the buyer's home purchase, often resulting in segregation and limiting the buyer's options based on their racial background. Steering is considered a violation of the Fair Housing Act, which prohibits discrimination in housing transactions. The intention behind steering is generally to maintain particular demographic characteristics of a neighborhood or to avoid perceived negative impacts on property values.

Competitive pricing and guiding clients through the purchasing process relate more to market strategies and client service rather than the unethical practices of steering. Encouraging discrimination at open houses can overlap with steering but does not specifically capture the direct action of directing buyers toward or away from neighborhoods. Thus, the definition of steering is distinctly aligned with option B.