Steering: The Risk Every Home Seller and Attorney Must Confront
Most people think steering is rare. The truth? It’s now built into the real estate system — and if you don’t account for it, it could cost tens of thousands in lost equity or even create legal exposure.
What the DOJ Has Said About Steering
In the Nosalek case, the Department of Justice made it clear: steering is a systemic problem. Buyer agents are financially motivated to steer clients away from properties that do not provide adequate compensation.
That’s not me saying it. That’s the DOJ’s position in federal litigation.
How Steering Worked in the Past
Historically, steering was less of a threat.
• Buyer agent compensation was embedded in the listing agreement.
• The listing agent split their own commission with the buyer’s agent.
• Buyers could assume their agent was showing them all available homes.
It wasn’t perfect, but the incentive to steer was muted.
Why Steering Is Worse Now
Today, the entire system has shifted.
• Buyer agent agreements pre-negotiate the fee buyers’ agents demand.
• Agents openly tell buyers: “Don’t worry — if a seller won’t pay what we agreed, we’ll find you a house that will.”
• Translation: many buyers will never see your home if it doesn’t cover that fee.
That means fewer showings, fewer offers, lower sales prices, and a growing body of legal risk for sellers and their attorneys.
Why Realtors Can’t Solve This
Realtors are not licensed to negotiate third-party compensation contracts. They don’t have forms. They don’t have language. They cannot counsel sellers on how to minimize legal exposure.
But sellers are still expected to make decisions that directly affect one of the largest slices of their equity.
What Sellers and Attorneys Can Do
The question isn’t whether steering is a risk. The question is how do you manage it?
Some sellers may choose not to offer buyer agent compensation at all. That eliminates steering incentives but may reduce the pool of offers.
Most sellers may choose to offer it strategically, because it can increase demand and even raise net proceeds.
The key is how it’s done. And that’s where attorneys come in.
Attorneys can structure transparent processes that align with DOJ guidance, use forms and acknowledgements that minimize steering risk, and advise sellers on whether compensation is likely to increase net proceeds or simply expose them to liability.
This is the foundation of the Attorney-Led Method, a structured way for sellers to get the benefits of buyer agent compensation while controlling the risks.
Why This Matters
For sellers, steering could quietly take thousands off your net proceeds.
For attorneys, referring a client into a system without addressing steering could create malpractice exposure.
If you’re a seller, you need to understand how steering affects your sale.
If you’re an attorney, you need a framework that protects your clients from risks Realtors can’t even address.
Click here to learn how the Attorney-Led Method solves steering risk while maximizing competition and net proceeds.
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