Blockbusting and panic selling refer to which type of real estate practice?

Blockbusting and panic selling refer to which type of real estate practice?

• A. A method for evaluating property value.
• B. A strategy for reducing property taxes.
• C. A legal marketing practice to speed up sales.
• D. Illegal practices to induce property sales by exploiting fears about protected classes.

Answer: (D)

Blockbusting and panic selling are illegal, discriminatory real estate practices that rely on fear of people from protected classes moving into a neighborhood to spur sales. A practitioner would imply that the arrival of a protected-class group will cause property values to drop or safety to worsen, prompting homeowners to sell quickly at depressed prices. The agent can then buy those properties cheaply and later resell, profiting from the changes—often to members of the very groups being feared. This violates the Fair Housing Act and professional ethics because it uses prejudice to manipulate markets rather than offering fair, legitimate services. It isn’t about evaluating property value, reducing taxes, or conducting legal marketing to speed up sales; those would be legitimate activities when conducted without bias.

Blockbusting and panic selling are illegal, discriminatory real estate practices that rely on fear of people from protected classes moving into a neighborhood to spur sales. A practitioner would imply that the arrival of a protected-class group will cause property values to drop or safety to worsen, prompting homeowners to sell quickly at depressed prices. The agent can then buy those properties cheaply and later resell, profiting from the changes—often to members of the very groups being feared. This violates the Fair Housing Act and professional ethics because it uses prejudice to manipulate markets rather than offering fair, legitimate services. It isn’t about evaluating property value, reducing taxes, or conducting legal marketing to speed up sales; those would be legitimate activities when conducted without bias.