An agent, broker or lender who is trying to scare owners in a neighborhood into selling their property by suggesting that property values will drop when a protected class moves into the area is an example of what?

Question

Ronin Mullins

Business

12 August, 02:23

An agent, broker or lender who is trying to scare owners in a neighborhood into selling their property by suggesting that property values will drop when a protected class moves into the area is an example of what?

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Answers (1)

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Margaret Larson · Answer 1

Blockbusting.

Explanation:

Blockbusting is the process in real estate where developers create fear in home owners by telling them home prices are going down. This is to persuade them to sell at low prices.

For example this was used in the United States where real estate agents persuaded white home owners that prices will fall as black minority were moving into the area.

The white home owners sold their homes at low prices.

The real estate agents eventually sold the properties to black people at higher prices.