Which statement best describes the practice of steering?

Steering refers specifically to the practice of directing homebuyers toward or away from certain properties based on demographics such as race, religion, or national origin. This practice is prohibited under fair housing laws because it can perpetuate segregation and discrimination in housing markets. By influencing buyers' choices based on their demographic characteristics rather than their preferences or financial situations, steering undermines the principle of equal housing opportunities.

In contrast, the other scenarios presented do not capture the essence of steering. For instance, directing homebuyers toward certain financing options or guiding them based on personal preferences may still fall within legal and ethical boundaries as they relate to providing professional services. Encouraging buyers to explore all neighborhoods equally promotes fairness and equal opportunity, directly opposing the concept of steering. Thus, the emphasis on demographic factors in the correct answer highlights the discriminatory nature that makes this practice problematic and illegal.