What term describes an agent who sends a warning letter to homeowners about an "undesirable ethnic group" moving into the area?

Blockbusting refers to the practice where real estate agents encourage homeowners to sell their properties at lower prices by instilling fear that a particular ethnic or racial group is moving into the neighborhood, which they label as "undesirable." This tactic aims to create panic selling, ultimately allowing the agent to profit by reselling those properties at higher prices to members of the targeted group.

This approach is not only unethical but also illegal under fair housing laws, which prohibit discrimination based on race, color, national origin, religion, sex, familial status, or disability. It exemplifies a harmful tactic used historically in real estate transactions to exploit racial fears.

In contrast, steering involves directing potential buyers to or away from certain neighborhoods based on their race or ethnicity, which is a different yet related discriminatory practice. Redlining is the practice of denying insurance or credit based solely on the racial or ethnic composition of a neighborhood. Discrimination is a broader term that encompasses any unfair treatment based on protected characteristics, including those explicitly mentioned in fair housing law. Each of these terms describes a different aspect of real estate-related discrimination, but blockbusting specifically highlights the manipulation of homeowners through fear tactics related to neighborhood demographics.