Answer:
The practice you're describing is commonly referred to as "blockbusting" or "panic peddling." Blockbusting is an unethical and discriminatory tactic used in the real estate industry to exploit racial prejudices and fear to encourage homeowners to sell their properties at lower prices.
Here's how it typically works:
1. Real estate agents or speculators spread rumors or make false claims that members of a minority group (often African Americans in the past) are moving into the neighborhood.
2. They suggest that this influx of minority residents will lead to a decrease in property values, ostensibly to persuade homeowners to sell their homes quickly.
3. These individuals may use scare tactics, such as showing photos or making statements meant to instill fear or anxiety in homeowners about the neighborhood's future.
Blockbusting is not only unethical but also illegal in many places due to its discriminatory nature. Laws such as the Fair Housing Act in the United States prohibit discrimination in housing on the basis of race, color, religion, sex, disability, familial status, or national origin. Engaging in blockbusting can result in severe legal consequences for those involved.
It's essential to report any instances of blockbusting or discriminatory practices in the real estate industry to the appropriate authorities to prevent harm to individuals and communities and to uphold fair housing laws and principles.
Step-by-step explanation: