What is blockbusting in real estate quizlet?
Asked by: Bailey Abshire | Last update: April 2, 2023Score: 4.5/5 (29 votes)
blockbusting. An illegal practice in which licensees or others encourage homeowners to sell because of an influx or expected influx of minorities into the area. redlining. The practice of a lender to refuse to lend in a specific area, often based on the minority makeup of the area.
What does blockbusting mean in real estate?
Definition of blockbusting
: profiteering by inducing property owners to sell hastily and often at a loss by appeals to fears of depressed values because of threatened minority encroachment and then reselling at inflated prices.
What is an example of blockbusting in real estate?
An example of blockbusting would be a real estate agent hiring a Black woman to walk her dog in an all-White neighborhood. They then place their real estate card in all the mailboxes on the block, offering to buy the house right away at a discounted price.
What is steering and blockbusting in real estate?
Steering is directing buyers based on their class. Redlining is generally the discrimination of buyers by the lending industry. Blockbusting is when an agent convinces people in a neighborhood to sell their house because the socioeconomics of the community is negatively changing.
What is blockbusting in lending?
Blockbusting was a business practice in which real estate agents and building developers convinced white residents in a particular area to sell their property at below-market prices.
Redlining, Steering, Panic Peddling, Blockbusting | Real Estate Exam Prep
Which of the following is an example of blockbusting?
Some of the most common 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 members of a neighborhood that they should sell before their property values decrease; and.
Which of these is an example of blockbusting quizlet?
What is an example of blockbusting? An agent persuades a family to put their house on the market because ethic minority families are beginning to move into the neighborhood.
When did blockbusting occur?
"Blockbusting" has been illegal since the Fair Housing Act of 1968. Yet racial segregation remains a "defining feature of American cities." "Blockbusting" emerged as a result. Mortgage brokers who had previously served as the gatekeepers of racial segregation became profiteering agents of racial transition.
What is steering mean in real estate?
“Steering” is the practice of influencing a buyer's choice of communities based upon one of the protected characteristics under the Fair Housing Act, which are race, color, religion, gender, disability, familial status, or national origin.
What is panic selling in real estate?
Essentially, panic selling in real estate occurs when an investor or homeowner offloads one or multiple properties quickly, and often for less than market value. The panic is often incited by an economic or emotional, wide-spread incident.
What is the difference between panic selling and blockbusting?
Blockbusting, which is also known as panic selling and panic peddling, is an illegal racial discrimination practice wherein real estate brokers attempt to change the racial composition of a neighborhood by encouraging listings and sales in a neighborhood.
Where did blockbusting happen?
Blockbusting took place routinely in Chicago prior to 1962, and the city remains highly racially segregated. The Fair Housing Act of 1968 made blockbusting less common, but African Americans continue to face housing discrimination and own homes that are much lower in value than properties whites own.
What is the meaning of panic peddling?
Panic peddling refers to a profitable ploy by unscrupulous real estate agents who suggest to homeowners that they move before their property values decline because the neighborhood`s racial composition is changing.
What is redlining in real estate?
Redlining is the name given to a discriminatory lending practice dating back to the 1930s when lenders would draw red lines on maps around neighborhoods that were predominantly Black as a way to deny a mortgage, claiming it was high risk.
What does redlining mean in real estate?
Redlining. 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 does puffing mean in real estate?
puffing. n. the exaggeration of the good points of a product, a business, real property and the prospects for future rise in value, profits and growth.
Does blockbusting still exist?
In 2004, Viacom unloaded its controlling stake in the video rental company, according to CBS.com. At that time, the franchise was at its peak with 9,000 brick-and-mortar stores worldwide. Today, only one remains in Bend, Oregon. It has been dubbed The Last Blockbuster.
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.
What is mortgage puffing?
Real Estate Puffing is the tendency for salespersons and advertising material to exaggerate certain facts about the real estate with the hope of initiating a buy.
Which of these is an example of puffery?
Puffery is a statement or claim that is promotional in nature. It's usually subjective and not to be taken seriously. Examples of these include claiming that one's product is the “best in the world”, or something completely unbelievable like a product claiming to make you feel like you're in space.
What was redlining quizlet?
A discriminatory real estate practice in North America in which members of minority groups are prevented from obtaining money to purchase homes or property in predominantly white neighborhoods.
Which is an example of steering quizlet?
Which is an example of steering? Steering relates to buyers or renters and is defined as channeling prospective buyers or renters to or away from specific neighborhoods.
What are HUD violations?
Housing providers who refuse to rent or sell homes to people based on race, color, national origin, religion, sex, familial status, or disability are violating federal law, and HUD will vigorously pursue enforcement actions against them.
What is the correct term or phrase for encouraging the panic selling of homes at below their market value?
Blockbusting is the term for encouraging the panic selling of homes at below their market value. You just studied 60 terms!