Which practice involves selling homes by exploiting fears within a neighborhood?

Blockbusting is a practice where real estate agents or brokers induce homeowners to sell their properties by exploiting fears of changes in the neighborhood, often related to demographic shifts. This could involve suggesting that certain groups moving into the area will decrease property values or change the community's character, thereby driving homeowners to sell quickly and potentially at a lower price. This unethical tactic takes advantage of the emotions and fears of homeowners, promoting panic selling and further perpetuating segregation and discrimination in housing.

In contrast, discrimination refers to unfair treatment based on race, color, religion, sex, or national origin, while steering involves directing potential buyers to or away from certain neighborhoods based on their demographic characteristics. Redlining is a practice where lenders refuse to offer mortgages or insurance to individuals in specific neighborhoods, often based on racial or ethnic composition, which is fundamentally a lending issue rather than a direct sale practice. Blockbusting distinctly focuses on inducing sales through fear, making it the correct response in this context.