What is the term used for induced panic selling in real estate?

The term for induced panic selling in real estate is blockbusting. This practice involves manipulating homeowners, often by suggesting that property values will decline due to the influx of certain demographics into a neighborhood. The goal is to create fear and urgency, prompting homeowners to sell their properties at lower prices. Real estate agents or companies that engage in blockbusting can profit by purchasing these homes at reduced rates and then reselling them at higher prices to new buyers, often from those demographics suggested as problematic.

Understanding this term is crucial because blockbusting is an unethical and illegal practice that can destabilize communities and contribute to discrimination. It highlights the importance of fair housing practices and the need for real estate professionals to operate with integrity and respect for all individuals, regardless of their background or demographics.