What is Blockbusting in Real Estate?
Blockbusting is a blockage in properties through real estate agents or investors. If we describe it in simple words, we can say that it is a process of manipulating the homeowners to sell their property to the other one at a cheap price against racial minorities so that real estate agents can consume the commission between the homeowners and the buyers. This overall process is called blockbusting in real estate.
Blockbusting is an act that no one does by their own will, it is done by giving into pressure and fear of losing or by lying on social or economic things.
In the USA, Blockbusting has been declared illegal under the Federal Fair Housing Act (1986), also known as the Civil Rights Act of 1968. This act describes some penalties against violence or intimidation and for other illegal purposes. If we talk about blockbusting with an example:
In the USA, real estate agents trying to convince white owners to sell their property or put a property on rent by telling lies such as people of other castes (black peoples) will soon shift in their area to scare them and they will make their private rules for society or land rates are going to be even cheaper in the coming time. So they adopt such crooked techniques which are also called cleverness.
How real estate agent do blockbusting in real estate
Real estate agents or builders or investors are all the same and lying on the same platform in a blockbusting line because the motives of all are not different if they want to get a big commission for their earning purpose.
They try to convince those people who don’t want to go anywhere by selling their home at a cheap price because they like their locality, neighbors. See, why do people live more in one locality? Because they love their locality, neighbors, environment, future investment on land.
Many things provoke homeowners by making them points so that they can agree and become consoles. The main motive is to convince the homeowners to sell their property at a discounted rate. It is a truly illegal process under federal fair housing law so no one can adopt this process, if someone tries to adopt this illegal process so everyone can file aginst these you can file a claim with HUD and as a qualified citizen, if you notice that people are doing the same things in your locality so you can also take legal action against it because everyone has right to go with right things and take action against discrimination such as:
- Religion or caste
- Financial crises
Other illegal estate practices
Many other illegal estate practices include redlining in which any bank or other financial institutions or other lenders who don’t want to give a loan or do not help them to sell their house to someone because of low caste or religion, nationality. IN simple words, they judge with their personality or religion so this is also called redlining.
Real estate agents tell clients that your living place does not suit you and your property will be down in the next few years.
- The goal of the fair housing act is to remove the discrimination from the root.
- These real estate agents perform very carefully to get achievement in their business so that they can generate more commission through these types of misleadings.
- Buyers should also support agents or dealers for their savings on land.
- Break the client’s heart by telling them about property rates in the upcoming few years.
In which situation real estate agent take advantage of homeowners
A critical situation comes when these agents take full advantage of homeowners and manipulate them to sell their property at a cheap price as soon as possible.
When clients are going to be bankrupt
In this situation, those people who have taken a loan from banks so if they are not able to return in a fixed time, they need to sell their house before they become bankrupt. In that case, they directly contact property dealers and dealers take full advantage of it and enhance them to sell their property at discounted rates. They can’t do anything because they need money to return a bank loan.
When Natural disasters occur
It is a very critical situation. In this situation, many people lost their houses and their property rate will also automatically decrease. When they come to sell, so everyone wants their property at a low rate. Natural disasters can be earthquakes, floods, tsunamis, tornadoes, etc.