Leasing License Practice Exam

Blockbusting is also known as which of the following?

1. Panic Peddling

2. Fear Mongering

3. Neighborhood Flipping

4. Market Manipulation

The correct answer is: Panic Peddling

Blockbusting is primarily known as panic peddling, which refers to a practice where real estate agents or landlords provoke fear among property owners, often by suggesting that a change in demographics in their neighborhood will negatively impact property values. This instills a sense of urgency, causing homeowners to sell their properties at lower prices. The agents then resell these properties at a higher price to new buyers, which is detrimental to both the community's stability and the principles of fair housing. The term directly captures the essence of the manipulation involved in these real estate practices—creating panic to drive decisions. Other terms like fear mongering can be related in a broad context but do not specifically align with the traditional use of blockbusting. Neighborhood flipping and market manipulation may reference similar ideas of changing ownership dynamics or exploiting market conditions but lack the direct connection established by panic peddling in the context of blockbusting.