What is the illegal real estate practice that involves encouraging homeowners to sell by exploiting fears of neighborhood change?

• A. Blockbusting
• B. Steering
• C. Redlining
• D. Puffery

Answer: (A)

Blockbusting is the illegal real estate practice of triggering homeowners to sell by exploiting fears of neighborhood change. Agents or others stir up panic by suggesting that the arrival of people from different racial or ethnic groups will ruin property values or bring crime, prompting reluctant sellers to move out. The tactic relies on discriminatory fears to profit from accelerated selling, which is why it’s unlawful under fair housing laws.

To see why the others don’t fit: steering is about directing buyers to or away from certain neighborhoods based on protected characteristics, not pressuring existing homeowners to sell; redlining involves denying services like loans to people in certain areas, not provoking sales; puffery is exaggerated advertising that’s generally not illegal and doesn’t target homeowners’ decisions about selling based on neighborhood demographics.