What is blockbusting in real estate terms?
Blockbusting refers to the practice of introducing African American homeowners into previously all white neighborhoods in order to spark rapid white flight and housing price decline. Real estate speculators have historically used this technique to profit from prejudice-driven market instability.
What is another name for blockbusting in real estate?
First and foremost, blockbusting, also sometimes referred to as “panic selling,” is a discriminatory and illegal real estate practice. It involves convincing property owners to sell their homes based on the assumption that a new neighbor will change the socio-economic makeup of the neighborhood.
Which of the following actions is an example of blockbusting?
Which of the following is an example of blockbusting? An agent persuades a family to put their house on the market because ethnic minority families are beginning to move into the neighborhood. … A home seller tells the listing agent that he will not consider any offers from minority buyers.
What is blockbusting example?
Examples of blockbusting include: When real estate agents alert the members of a neighborhood that it is “changing” and that they should sell their property. Making house-by-house telephone calls urging member of a neighborhood that they should sell before their property values decrease.
What is an example of redlining?
While the best known examples of redlining have involved denial of financial services such as banking or insurance, other services such as health care or even supermarkets have been denied to residents.
What does redlining mean in real estate?
Redlining is the practice of denying a creditworthy applicant a loan for housing in a certain neighbor hood even though the applicant may otherwise be eligible for the loan.
What is Novation mean in real estate?
Novation in real estate occurs when a party, term, or obligation in a contract is replaced with another. When this happens — and it happens quite often in both residential and commercial real estate transactions — the original contract is voided and replaced with the new agreement.
What is channeling in real estate?
This is the unethical and illegal practice of directing prospective buyers to or steering them away from particular areas and neighborhoods due to minority statuses such as race, national origin, religion, or ancestry. It can also be referred to as steering.
Does blockbusting still exist?
“Blockbusting” has been illegal since the Fair Housing Act of 1968. … The practice of blockbusting has been illegal since the Fair Housing Act of 1968. Yet racial segregation remains a “defining feature of American cities,” as Amine Ouazad, assistant professor of economics at INSEAD, puts it in a new paper.
Is profit a factor in blockbusting?
(b) In establishing a discriminatory housing practice under this section it is not necessary that there was in fact profit as long as profit was a factor for engaging in the blockbusting activity.
How did blockbusting work?
Blockbusting is a business process in which U.S. real estate agents and building developers convince property owners to sell their houses at low prices, which they do by telling house owners that racial minorities will soon move into their neighborhoods in order to instill fear in them.