You are ready to buy a home and the first thing you do ishire a trusted real estate agent. Share your budget, what you're looking for, and the neighborhoods you're considering.
In an ideal world, your agent would listen carefully and then send you any items that might fit your must-have list. Their recommendations are based on your actual needs rather than their own preconceived notions of what you think they might need. They patiently answer your questions and guide you to community resources that can help you make the best decision for you and your family.
Unfortunately, for many homebuyers in the United States, this ideal experience is notespecially minorities.
Real estate agents have a long history of directing buyers to specific neighborhoods based on race, color, religion, and other discriminatory factors. In fact, driving is one of the main reasons for the widespread neighborhood segregation we see in the US today, despite theSupreme Court ruling in 1979that the practice violatesFair Housing Act.
But what exactly is management in real estate and how does it work in municipalities? Let's discuss what you need to know about driving, the laws surrounding this controversial practice, and what to do if you think your agent is driving you.
What drives real estate?
Control is when a real estate agent influences a homebuyer to buy in certain communities based on their race, thereby limiting the buyer's options.
Let's look at a hypothetical driving example: A white buyer and a black buyer approach the same real estate agent who want to buy houses. Both buyers have similar financial profiles and similar needs for their future homes. The agent sends the white buyer 40 offers in 5 different communities, all predominantly white. The agent sends the black buyer 22 offers in 3 communities, all multiracial or mostly black.
(In fact, the above scenario is an example of how researchers determine whether motoring is prevalent and how common it is, using a method known as "paired Test.“)
This is how steering normally works. Agents direct customers to neighborhoods based on their race.
In practice, this means that white buyers are generally given more housing options and discouraged from moving to other neighborhoods. Black buyers are often offered fewer options and move to predominantly black or multiracial neighborhoods.
Driving is illegal under thatFair Housing Act(more on that later). are real estate agentsmandatoryoffer the same professional services to all real estate buyers regardless of race, religion, color, disability, national origin, gender or marital status.
what is direction
Real estate agents generally practice management in two ways:
- Recommend customers to shop in specific neighborhoods or cities based on their race.
- Failure to show customers all relevant housing options based on their race.
While driving can be done in many different and often treacherous ways, most driving behaviors generally fall into one of these two categories.
What can management look like in practice?
Let's look at how direction can change in real life. Here are some examples of how agents can guide their customers.
- Show more deals for white homebuyers than for minority homebuyers.
- Suppose the clients want to live in neighborhoods populated mostly by people of the same race and simply show them houses in those neighborhoods.
- Discourage white customers from living in minority areas for "safety reasons" (or other euphemisms like "They don't want to live there; they have really bad schools").
- Educate white homebuyers about neighborhood safety concerns, such as:
- Minority communities disdain for white customers.
If an agent fails to provide an equivalent and professional service to its customers and, without express guidance from those buyers, makes assumptions about what multiracial buyers want, there is a fundamental risk that they will be misled.
which direction not
Real estate agents are obliged to offerequal professional servicefor homebuyers, and the more they do, the more they avoid driving.
How do agents provide equivalent professional services? Provide buyers with choices and present factual information so they can make their own informed decisions.
Give buyers options
"Okay," you might be wondering, "buyers should have choices... but can't buyers have preferences, too?"
Of course they will have preferences andGiving buyers all options is important for agentswithin your original criteria, and leave thebuyerguide the decision of which neighborhood and house is best suited.
When a buyer wants to buy a home in a particular school district or near a particular place of worship, that's usually the caseNOa form of direction as long as the buyer is the one guiding those decisions.
A good broker should cast a wide net for the buyer and leave it alonebuyerlimit the options according to your preferences.
Provide buyers with objective information.
There's nothing wrong with an agent telling customers about the different parts of an area. That's part of an agent's job!
Strong agents have a wealth of knowledge about their cities and understand the ins and outs of each neighborhood like the back of their hand. That's why buyers hire them; for his knowledge of the market.
However, it is not the broker's job to impose his personal opinion on the buyer. This is where objective information comes into play.Agents must offer objective information and resources.Shoppers on local schools, crime and safety and other important community facts. That way, prejudice doesn't come into play and shoppers can make their own informed decisions.
Where agents often have trouble driving, they warn some shoppers (usually white shoppers) to avoid certain neighborhoods due to so-called high crime rates and poor schools. Or maybe an agent will say something like, “You won't like it there; It's shabby at night.
These types of comments can lead to targeted and other discriminatory practices (more on that later).
How common are addresses in the real estate market?
Unfortunately, management is incredibly common in the real estate world. The practice has been well documented for decades, withStudies on driving and its impact on communities that emerged as early as 1976.
Since the late 1970s, the Department of Housing and Urban Development (HUD) has studied motoring by sending pairs of mystery shoppers into US cities to assess how agents treat them.
Ölatest HUD study, published in 2013, found that even when black and white homebuyers had the same financial score, “white homebuyers are more favored than minorities. More importantly, minority home seekers are informed and show fewer houses and apartments than white people."
Acurrent research byNewsa Long Islandfound similar results: "Overall, agents provided white reviewers, on average, 50% more entries than their black counterparts: 39 versus 26," they said.
black participants of theNewswere surprised and disappointed to learn that the officers had discriminated against them.
“I didn't think that without this test there would be a difference between what was provided. My assumption would be that everyone would get the same lists based on their economic and geographic needs," said Martine Hackett, senior professor of public health at Hofstra University, who received mixed treatment from agents three times during the investigation.
"Having such limited options makes me wonder what options are there that people might not be aware of. And who makes these decisions? she guessed.
The subtlety and secrecy of the direction is one of the reasons why it is difficult for buyers to identify the behavior. Most buyers have no idea they have been scammed. How do you know you were given fewer options than another buyer?
To make matters worse, real estate agents often don't even realize they're driving! This type of bias is often unconscious, and the agent believes they are just trying to meet the needs of their buyers as best they can. Therein lies the ubiquity and insidiousness of management.
Management contributes to actual segregation
leadership practice isSowidely used, it works as a tool ofAs a matter of factdemarcation. What does that mean?
Well, many Americans like to think of segregation as an old story, something we learn about in history books, an old story told through black and white photographs.
But the reality is that America is still highly divided, and driving plays a big part in that division. In fact, studies showThe United States is still almost as segregated as it was 50 years ago.when the Fair Housing Act was signed.
a recentNational Fair Housing Alliance reportexplains: “Today in the United States, about half of all blacks and 40% of all Latinos live in non-white neighborhoods. The average white person lives in a neighborhood that is almost 80% white."
Ultimately, this separation has a tremendous impact on communities.
The consequences of counseling in minority communities
Okay, we know driving happens, it's common, and it contributes to neighborhood segregation in the US.Strictly speakingaffect underserved American homebuyers?
Unfortunately, driving has far-reaching negative effects for minority homebuyers, particularly black people.
Fewer housing options
An obvious effect of the address is that it reduces housing opportunities for minority buyers. Studies have found that black buyers consistently receive fewer offers from real estate agents, limiting their home choices.
"This practice has a particularly negative impact on black families in a number of ways," the National Association of Realtors (NAREB) saidHousing situation in black America in 2019.
"Failing to show properties to black buyers in non-Hispanic white neighborhoods and targeting them exclusively to black neighborhoods can seriously undermine the quantity and quality of housing opportunities for black families."
Lower real estate appraisal and ownership rates
Another big consequence of black family leadership? Houses in black neighborhoodsappreciate in valueas much as houses in white neighborhoods, so these owners cannot amass as much wealth.
youngestAmerican Center for Progress surveynoted that “past and present racial prejudice and discriminatory practices in the real estate markets, such as E.g. red-lining, motoring, different valuation methods and the racist perception of neighborhoods by appraisers, among other things, contribute to lower demand for housing in African-American neighborhoods.”
This reduced demand means reduced home prices.
The study continues, “Even after accounting for residential characteristics, homes in neighborhoods with a high concentration of African Americans, as well as neighborhoods undergoing racial transition, are generally worth less and less valuable than those in predominantly African American neighborhoods. .space ”
One nowA Brookings Institution study found that blacks get 18% less for their homesthan whites, even in terms of income.
Homeownership is often touted as the cornerstone of the American Dream and the best way to build wealth in America.don't play the samefor homeowners in black and white.
"Low or falling home prices may contribute to low homeownership rates among black families,"NAREB explained. "Low home price increases can discourage homebuyers, and falling prices can lead to foreclosures, even for borrowers who can afford the required monthly mortgage payments."
segregation and school quality
Technically, we've integrated schools since the landmark 1954 Supreme Court casebrown v. Board of Education of Topeka,Schools remain segregated across the country, still today.
In fact, a recent report found this to be the caseMore than half of American children attend schools in racially concentrated counties(meaning that 75% or more of the students are of the same race). The same report found that nonwhite school districts receive $23 billion less in funding than white school districts, despite serving the same number of students.
As NAREB points out, racial orientation "can further limit blacks' access to better schools, wider recreational opportunities, safer roads, and higher housing prices."
lack of opportunities for advancement
Another important impact of motoring on minority communities is the lack of upward mobility.
ÖThe National Bureau of Economic Research explainsthat even when shoppers' location and income preferences are controlled, "discriminatory driving alone can explain a disproportionate number of minority households found in high-poverty areas of the United States and can be a significant factor in the contributing to the buyer mobility gap Income found between black and white families.
“Intergenerational” is a key word here because it means black families stayfor generationsby address The practice can be as broad aslong-term effectsminority homebuyers.
Aside from making it harder for minorities to accumulate wealth, driving can have a significant impact on the health of owners. This is because minority homebuyers tend to be pushed into areas with higher levels of pollution.
ÖStudie des National Bureau of Economic Researchfound that the minority testers they sent to buy homes "targeted neighborhoods with a higher concentration of Superfund locations and Toxics Release Inventory (TRI) releases."
That's according to another recent Ohio State University studyDisease-causing air pollution is rampant in certain parts of the United States., that is, in areas populated by black and low-income people.
Other important definitions related to driving and housing discrimination
Driving is not the only discriminatory practice faced by minorities and other underserved homebuyers, nor is it the only cause of segregation. The problem is multifaceted and certainly not just the fault of real estate agents.
In accordance withNational Alliance of Housing Fairs, "Racial and ethnic inequalities in access to credit, the combined impact of the subprime credit crunch and foreclosures, and modern practices of discrimination, racial targeting and redlining have perpetuated racial segregation."
There is a complex system that puts minorities at a disadvantage when it comes to housing. Here are some of the most important terms you should know.
Redlining is a practice in which lenders refuse to provide mortgages to buyers in certain so-called "high-risk" neighborhoods, such as the United States. B. those with low incomes or predominantly minorities.
Surprisingly, the red line was drawn by the federal government. In the 1930s, after the New Deal was signed, the Federal Housing Authority, created in 1934, actually produced color-coded maps that colored "risky" neighborhoods red (hence the term "red line"). The red areas represented locations where the federal government would not support home loans. YouI can still see those red cards today.
Although redlining is currently illegal thanks to the Fair Housing Act 1968, the effects of the practice are still being felt.
In accordance withCurrent Redfin research, “The typical homeowner in a neighborhood denied by the federal government for home loans made 52% less, or $212,023 less, in personal wealth generated by rising real estate values over the past 40 years than one in an approved neighborhood “.
Blockbusting is a historic real estate practice in which real estate agents, developers, and speculators persuaded white homeowners to sell their homes, fueling fears that black buyers would move into the neighborhood and lower the homes' values.
White homeowners would panic and sell their homes at a loss. Then the realtors would turn around and sell the homes to black buyers at a huge, inflated profit. Back then, there were only a few houses available to black people, so they had no choice but to pay these high prices.
Blockbusting is obviously illegal today and is no longer explicitly practiced. However, this type of scaremongering is still practiced in more implicit ways, such as through modern motoring. Blockbusting was designed to get white people to flee.
White flight is exactly what it sounds like: White people are migrating from an area that is becoming more diverse. And even though that seems to be a thing of the pastRecent research suggests that whites continue to flee areas as they become more diverse., even more so in middle-class suburban neighborhoods.
Is there a driving ban?
There is a major federal law prohibiting driving called the Federal Fair Housing Act, also known as Title VIII of the Civil Rights Act of 1968.
The Fair Housing Act
The Fair Housing Act prohibits discrimination when looking for housing on the basis of race, color, sex, national origin, religion, marital status or disability.
The law protects home seekers from discrimination, whether they are buying or renting, taking out a mortgage, seeking housing assistance, or engaging in other housing-related activities.
But what exactly does the Fair Housing Act prohibit? Here are some examples.
- Refuse to rent, sell, or negotiate a home
- Any other way of making living space inaccessible, e.g. B. to prevent the purchase or rental of property.
- Define various conditions for selling or renting a property
- Calculate different sales or rental prices
- Request different eligibility criteria for applications
- Failure or delay in maintenance or repair.
- Red line
This list is far from complete (especially sinceThere are many nuances in housing discrimination), but make one thing clear: all buyers and renters should be treated equally by real estate professionals. This is the essence of the Fair Housing Act.
And the provisions of the law do protectat,not just those within the protected classes. This means that under the Fair Housing ActIrrespective of this, you are protected against discrimination when looking for an apartmentYour race, color, religion, gender, national origin, marital status or disability.
State and local housing discrimination laws
State and local laws can, and often do, go beyond the Fair Housing Act. One way the laws expand fair housing protections is to include even more protected groups than are covered by federal law.
For example himNew York State Department of Human Rightsexpands the Fair Housing Act to include housing protections for gender identity, sexual orientation, marital status and military status.
Be sure to check your state and city's housing discrimination laws. You may be surprised that it is much longer than federal law. And rememberThere are local laws that go beyond the protections of the Fair Housing Act. No place may circumvent the Fair Housing Act or enact any law that invalidates its protection.
How are driving laws applied?
Driving is illegal, but that doesn't mean anti-discrimination laws are enforced. In fact, it's common for the address to go unnoticed, as most buyers don't even realize it's happening to them. However, there are some main ways in which the Fair Housing Act is applied.
Government agencies that enforce driving laws
The Fair Housing Act is enforced by the US Department of Housing and Urban Development (HUD) through its Office of Fair Housing and Equal Opportunity. HUD enforces the law in a variety of ways.
First, HUD conducts the aforementioned studies, in which it sends test pairs of buyers and renters to cities across the US to measure how they are treated. This is one way to hold the real estate sector accountable. (Although it could be argued that if the studies helped enforce anti-discrimination practices, we would probably get better results after doing them for decades.)
Another way HUD can enforce the Fair Housing Act? You investigate complaints about anti-discrimination,which anyone can submit online, by phone, email or even by post.
Many state and local governments also have their own regulatory bodies. Sometimes an on-the-spot report can be more effective, as state and city governments typically have more specialized knowledge of discriminatory practices in specific areas.
administration and courts
Sometimes homebuyers can also get discrimination rights in court. These cases are often large lawsuits filed by the Attorney General or a local advocacy group on behalf of homebuyers.
For example, there was a first casereal estate forum v. Attorney General of New York State, which took place in 1988. In that case, the New York State Attorney General accused Yonkers real estate agency Realty Forum of "providing housing listings in certain neighborhoods based solely on the customer's race or color." The Realty Forum was eventually found guilty.
So how did the New York Attorney General expose the discriminatory practices? Called by a fair communityHousing options in Westchester, which has received numerous complaints from local tenants through the Realty Forum.
This is one of the reasons why it can be important to report housing discrimination both locally and through HUD. If enough buyers file discrimination complaints, all from the same real estate agent, the state can file a lawsuit against that real estate agent in court.
What to do when you think you're being guided
If you feel like you're being guided by your real estate agent, there is onesome things you can doto defend you
If you have to sue your agent and you end up having to sue, you want a record of everything that happened.
Make sure you document everything you experience with your agent, such as: B. how many offers he sent you, advice he gave you about neighborhoods, conversations you had, forms you filled out, email communications, etc. This can later be used as evidence if needed .
talk to your agent
Aside from documenting everything, the first thing you should do is talk to your agent.
For example, let's say you recently discovered several listings matching your home search criteria that your realtor never showed you and you think management may be involved. This is an opportunity to talk to your agent and find out what's going on.
First, try to avoid accusing your agent of going straight through the door and consider this a preliminary information search. Just ask the questions directly: “I noticed some entries that you never sent me and that match my search. Can you explain why?
At the very least, this conversation can later be used as evidence of discrimination if the issue is not properly resolved.
Get a second opinion
The bottom line is that you must trust your real estate agent. If you think you're being treated unfairly, then probably you areTime to fire your agentand find a new one who will give you the same professional service you deserve.
Now is the timeInterview some more agentsand find someone who values your business and treats you fairly.
If you aBuyer's brokerage agreement, be sure to read it carefully first. There are certain conditions under which you can fire an agent, although any evidence of discrimination is likely to be covered by the terms of the contract.
Keep in mind that firing your agent doesn't mean you shouldn't report it, but in the meantime, it's also important to find someone you're comfortable working with so you can continue your investigation without interruption.
If you think you have experienced discrimination of any kind when looking for housing, consider reporting your behavior to a local law enforcement agency,via HUD, or a local fair housing organization.
Most housing discrimination goes unreported and undetected. While reporting your real estate agent can be exhausting and harrowing, these reports are law enforcement's way of proving patterns of systemic discrimination. Without people speaking up, many discriminatory practices can go undetected.
If all else fails, speak to an attorney who can advise you on your rights and your best options. You always have the option to sue for damages in federal or state courts, but you will need an attorney to guide you through this process.
If you choose to go this route, understand that you can recover only the out-of-pocket expenses you have incurred as a result of the discrimination plus any emotional distress or injury. It is important to assess whether this option is worthwhile for you, as such cases can be time-consuming, expensive and stressful for the plaintiff. Still, it's a good option when the system doesn't intervene.
Remember, you have the right to be treated fairly by your real estate agent regardless of race, color, national origin, sex, marital status, disability or religion.
Header Image Source: (June Dalton / Unsplash)
What is guiding potential homebuyers to specific neighborhoods or discouraging them from considering particular areas to live in known as? ›
Redlining is a discriminatory practice that puts services (financial and otherwise) out of reach for residents of certain areas based on race or ethnicity. Redlining is illegal.What is the real estate term for segregation? ›
Redlining — both as a term and a practice — is often cited as originating with the Federal Home Owners' Loan Corporation (HOLC), a government agency created during the 1930s New Deal that aided homeowners who were in default on their mortgages and in foreclosure.What is the term used to describe the act of influencing a buyer's choice of neighborhoods based upon a protected class? ›
“Steering” is the practice of influencing a buyer's choice of communities based upon one of the protected characteristics under the Fair Housing Act, which are race, color, religion, gender, disability, familial status, or national origin.What is the practice of guiding specific buyers away from a neighborhood because of their race known as? ›
Fair Lending: Fair Housing Act. Racial Steering. Racial steering—deliberately guiding loan appli cants or potential purchasers toward or away from certain types of loans or geographic areas because of race—is illegal.What's the main reason for performing a neighborhood analysis when purchasing property? ›
An appraiser must perform a neighborhood analysis in order to identify the area that is subject to the same influences as the property being appraised, based on the actions of typical buyers.What are four factors to consider when choosing a neighborhood? ›
- Neighborhood Safety. ...
- Closest Grocery, Pharmacy, and Department Stores. ...
- School District. ...
- Nearby Parks, Walking Paths, or Dog Parks. ...
- Commute to Work. ...
- Types of Restaurants in the Area. ...
- Things to remember.
Cost Segregation is a tax strategy that allows real estate owners to utilize accelerated depreciation deductions to increase cash flow and reduce the federal and state income taxes they pay on their rental income.What are the three main types of discrimination in real estate? ›
What is Protected. California law protects individuals from illegal discrimination by housing providers based on the following: Race, color. Ancestry, national origin.What is segregation of residential areas? ›
"Segregation of spaces" (Ghurye 1969) is central to caste-based social and economic marginalisation of vast swathes of India. In many parts of India, village habitations continue to be segregated as caste-based hamlets, with 'lower' caste groups occupying the spatial periphery.What factors are likely to influence the buyer's decision to purchase the property? ›
- Cultural superstitions. Some cultures see certain numbers as 'luckier' than others. ...
- Perceived value. ...
- First impressions. ...
- A home that tells a story. ...
- Social proof. ...
- The ideal lifestyle.
What is encouraging buyers to limit search to particular neighborhoods based on factors such as race or religion? ›
“Steering” under the Fair Housing Act is the process of influencing a buyer's choice of communities based upon the buyer's race, color, religion, gender, disability, familial status, or national origin.What influences a buyer's decision? ›
Personal factors: Audience demographics such as age, culture, profession, age and background play major roles in forming consumers' interests and opinions. Social factors: A person's social groups affect how they shop. Their income, education level and social class influence their buying behaviors.How does ethnic discrimination on the housing market differ across neighborhoods and real estate agencies? ›
We also found that discrimination is lower in poorer and more ethnically mixed neighborhoods and higher in smaller and male-dominated real estate offices. We call for a bigger focus on both spatial and organizational context in research on discrimination.What is an example of a real estate agent participating in racial steering? ›
So steering occurs, for example, when a real estate broker shows a Black family homes only in predominantly Black neighborhoods, or when a property manager in an apartment complex declines to show Latinx applicants vacant units in a building where the large majority of residents are Chinese-American because he thinks ...What is directing a minority toward a certain neighborhood or away from a certain neighborhood known as? ›
Racial steering refers to the practice in which real estate brokers guide prospective home buyers towards or away from certain neighborhoods based on their race.What are the three most important things for a good neighborhood? ›
- Homeowners Care About Their Neighborhood & Their Neighbors. ...
- Outdoor Recreational Opportunities. ...
- Superior Schools. ...
- Proximity to Amenities. ...
- Safety. ...
- In Sync with Your Lifestyle.
- Analyze the neighborhood. First, familiarize yourself with the neighborhood wherein the subject house is located. ...
- Evaluate the subject property. ...
- Select similar properties. ...
- Adjust for differences. ...
- Calculate sold price per square foot. ...
- Determine the subject home's value.
Cost approach: the cost of the land and construction, minus depreciation— suitable for new construction. Income approach: based on expected cash inflows—suitable for rentals.What is one of the best ways to determine neighborhood boundaries? ›
Major streets are the most common way to define a neighborhood boundary. Streets define clear edges that are easily recognized and remembered.What makes a neighborhood more desirable? ›
Proximity and access to tennis courts, neighborhood swim clubs, and golf courses are also qualities that keep your neighborhood on par. There's something about an area with history that makes it very desirable. Tree-lined streets give neighborhoods a charming, older, and established feel.
What are the elements of neighborhood planning? ›
- Defining the neighborhood boundaries.
- Public engagement and consultation.
- Evidence collection.
- Evaluation and monitoring.
Social capital may be increased as well if people of similar income, needs, and tastes share the same neighborhoods. Segregated households may have a greater sense of belongingness, social cohesion, trust, participation, and mutual support and collective action.What is the importance of cost segregation? ›
A cost segregation study can reduce tax liability and increase cash flow in the early years of real estate ownership. The cash flow increase from a study's tax savings can then be invested in a business or used as appropriate.What is cost segregation in real estate examples? ›
Cost Segregation Study Example
For example: You buy an office building for $1,000,000. Land isn't depreciable, so you decide the land is worth $200,000, and the building is worth $800,000. If you depreciate the building over 39 years, your depreciation write-off would be $20,512.82 per year.
For example, a tenant who doesn't receive a call back from a real estate agent based on their name being “non-Anglo” is one way that real estate agents discriminate against tenants (10) (11). Another form of discrimination occurs during the application and selection process.What are measures against discrimination in real estate? ›
Under the law, a home seller or landlord cannot establish discriminatory terms or conditions in the purchase or rental; deny that housing is available, or advertise that the property is available only to persons of a certain race, color, religion, sex, handicap, familial status, or national origin.What type of discrimination can a real estate agency have? ›
Federal housing discrimination is discrimination on renting or buying a property based on race, color, religion, national origin, sex (including gender, gender identity, sexual orientation, and sexual harassment), familial status, and disability.What are the 5 dimensions of residential segregation? ›
They argued that segregation is not a unidimensional construct, but encompasses five distinct dimensions of spatial variation. The five dimensions they identified are: evenness, exposure, clustering, concentration, and centralization.What are the factors affecting residential segregation? ›
Current trends in racial and income based residential segregation in the United States are attributed to several factors, including: Historical housing discrimination. Exclusionary zoning practices. Location of public housing.What are the 4 types of segregation? ›
- Legal segregation.
- Social segregation.
- Gated communities.
- Voluntary segregation.
What are the 5 main factors that influence purchasing decisions? ›
- Psychological Factors.
- Social Factors.
- Cultural Factors.
- Economic Factors.
- Personal Factors.
Leading a thorough discovery of my concerns, wants, and needs is ranked as the most influential factor in a buyer's purchase decision.
Unfortunately, the demand for consumer goods is affected by many different factors including product price, consumer income and expectations.What encourage or discourage persons from purchasing property in a neighborhood based on the racial or ethnic characteristics of the area? ›
“Steering” is the practice of influencing a buyer's choice of communities based upon one of the protected characteristics under the Fair Housing Act, which are race, color, religion, gender, disability, familial status, or national origin.What is guiding prospective buyers to or from a neighborhood based upon their race called? ›
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 are two factors that would influence buyers? ›
Psychological (motivation, perception, learning, beliefs and attitudes) Personal (age and life-cycle stage, occupation, economic circumstances, lifestyle, personality and self concept) Social (reference groups, family, roles and status)What are the 10 factors that influence consumers buying decisions? ›
- Psychological Factors. Human psychology plays a major role in understanding consumer behaviour. ...
- Motivation. Motivation to do something often influences the buying behaviour of the person. ...
- Perception. ...
- Learning. ...
- Attitudes and Beliefs. ...
- Social Factors. ...
- Family. ...
- Reference Groups.
The production cost and quality problems are the major triggers of a make-or-buy decision. Other factors are managerial decisions and a company's long-term business strategy that dictate the current operations pattern.What factors should one consider when buying a house in a certain area? ›
- Is it an up-and-coming area or still in transition? ...
- What are the schools like in the area? ...
- What surrounds the area? ...
- Distance from work. ...
- Is it safe?
This refers to "categories" of homebuyers that are specifically protected from housing discrimination under the federal Fair Housing Act.
What is the practice of denying loans on properties in certain neighborhoods known as? ›
Redlining can be defined as a discriminatory practice that consists of the systematic denial of services such as mortgages, insurance loans, and other financial services to residents of certain areas, based on their race or ethnicity.What are the 3 most important factors when buying a house? ›
There are a lot of factors to consider when buying a property. Location, size, age, condition, value, and your budget are all important things to keep in mind. It's important to do your research and make sure that you're getting a good deal on the property.What are the three most important things in real estate? ›
If you have been involved in real estate for any length of time, you've heard it said that the three most important things when it comes to real estate are “location, location, location.” I've heard nationally-recognized experts say that over and over on national media.What is the primary source of housing discrimination protection? ›
The Fair Housing Act prohibits discrimination in the sale, rental, and financing of housing based on race, color, national origin, religion, sex, familial status, and disability. The act has two main purposes—prevent discrimination and reverse housing segregation.What are the 7 personal characteristics that are protected by the Fair Housing Act? ›
In the Sale and Rental of Housing:
It is illegal discrimination to take any of the following actions because of race, color, religion, sex (including gender identity and sexual orientation), disability, familial status, or national origin: Refuse to rent or sell housing.
The Affirmative Fair Housing Marketing Plan (AFHMP) is a marketing plan designed to attract buyers and renters of all majority and minority groups regardless of race, religion, color, national origin, sex, disability and familial status to assisted rental units and single family dwellings which are being marketed for ...What are groups of potential customers with common characteristics that influence their buying decisions called? ›
A target market is the ideal group of prospective customers for a specific product or service who share common characteristics that influence their buying behaviors.What are the two main fair lending laws that prohibit discrimination? ›
The federal fair lending laws—the Equal Credit Opportunity Act and the Fair Housing Act—prohibit discrimination in credit transactions, including transactions related to residential real estate.What are the types of discrimination in mortgage lending? ›
The Fair Housing Act makes it illegal to discriminate against someone because of race, color, religion, sex (including gender, gender identity, sexual orientation, and sexual harassment), familial status, national origin or disability at any stage of the mortgage process, including: Approvals and denials.What discriminatory lending practice by lenders resulted in the destruction of whole neighborhoods? ›
Redlining was the practice of outlining areas with sizable Black populations in red ink on maps as a warning to mortgage lenders, effectively isolating Black people in areas that would suffer lower levels of investment than their white counterparts.