Leasing License Practice Exam

Which of the following is NOT a characteristic of blockbusting?

1. Persuading owners to sell cheap

2. Profiting from resale

3. Encouraging integration

4. Creating panic among property owners

The correct answer is: Encouraging integration

Encouraging integration is not a characteristic of blockbusting. Blockbusting refers to the unethical practice where real estate agents or developers create fear among homeowners, typically in predominantly white neighborhoods, by suggesting that a minority group is moving into the area. This tactic is intended to induce a sense of panic among existing homeowners, leading them to sell their properties quickly and often at lower prices. The practice is primarily motivated by the potential for profit through resale to new buyers, often at inflated prices. Therefore, persuading owners to sell cheap, profiting from resale, and creating panic among property owners are all integral to the concept of blockbusting. Encouraging integration, on the other hand, suggests a positive and inclusive approach to demographic change in neighborhoods, which stands in stark contrast to the fear and exploitation characteristic of blockbusting practices.