Wisconsin Real Estate Sales Practice Exam 2025 – The Complete All-in-One Guide to Exam Success!

Blockbusting refers to the practice where real estate agents or companies persuade homeowners to sell their properties quickly at a lower price due to the fear that a certain demographic group moving into the neighborhood will decrease property values. This tactic often exploits racial or ethnic tensions, leading to a sense of urgency and panic among homeowners, causing them to sell their homes hastily. The underlying motive for this practice is the potential for profit through reselling these properties at higher prices to the new demographic group, a practice that is unethical and illegal.

In contrast, redlining involves the denial of services to residents in specific neighborhoods based on the racial or ethnic composition of those areas, while steering refers to the practice of directing clients toward or away from certain neighborhoods based on their race or ethnicity. Discrimination encompasses a broader range of unfair treatment based on characteristics like race, gender, or religion. Overall, blockbusting is a distinct practice driven by the manipulation of homeowners’ fears, making it the correct answer in this context.