In today's day and age, we'd like to believe that racial discrimination is a thing of the past. In large part, it is, at least when it comes to real estate transactions. This wasn't always the case, though. At one time, all manner of racial, ethnic and religious minorities were being discriminated against in the housing market. Due to unjustified prejudices on their part, white homeowners were getting duped in the process as well.
Blockbusting was once essentially a business practice employed by real estate agents and building developers. Blockbusting provided encouragement to white homeowners to sell their properties at a substantially lower rate than they were actually worth. Real estate agents and building developers would fraudulently suggest to white homeowners that people from then undesirable minority groups like African Americans, Latinos and Jews would be moving into once all-white neighborhoods.
The fear was that, if these racial, ethnic and religious minorities moved into once racially segregated white neighborhoods, the white homeowner's real estate property values would take a drastic hit. As a result, real estate agents, business developers and others involved in the fraudulent practice stood to make a substantially higher sum of money than they would if the house had been sold for its actual value. For investors or building developers, the homes could be bought a fair amount cheaper than market value. Real estate agents would then receive a larger commission for their part in fraudulently inducing white homeowners to sell their land at such a low price.
After World War II, blockbusting as a business practice was made possible. This was caused both by legally acceptable real estate practices of the time and also the dismantling of the former legally-protected racially segregated neighborhoods in the United States. Real estate agents and others were able to prey on the misguided fears of white homeowners concerned about the possibility of losing money in their property investments, once previously segregated neighborhoods were ordered to be open to all potential home buyers.
Blockbusting is very rare and prosecuted fully under the law in today's society. As a result to changes in law, blockbusting all but disappeared by the 1980s. Individual states increased protections against discriminatory housing and real estate transaction practices of their own accord, and the Fair Housing Act was implemented into federal law. It is interesting to note that some states have more inclusive and protective laws for minority groups than even federal protections boast. A state's own governmental website is the best place to look for information on state-specific housing laws.
Blockbusting was once essentially a business practice employed by real estate agents and building developers. Blockbusting provided encouragement to white homeowners to sell their properties at a substantially lower rate than they were actually worth. Real estate agents and building developers would fraudulently suggest to white homeowners that people from then undesirable minority groups like African Americans, Latinos and Jews would be moving into once all-white neighborhoods.
The fear was that, if these racial, ethnic and religious minorities moved into once racially segregated white neighborhoods, the white homeowner's real estate property values would take a drastic hit. As a result, real estate agents, business developers and others involved in the fraudulent practice stood to make a substantially higher sum of money than they would if the house had been sold for its actual value. For investors or building developers, the homes could be bought a fair amount cheaper than market value. Real estate agents would then receive a larger commission for their part in fraudulently inducing white homeowners to sell their land at such a low price.
After World War II, blockbusting as a business practice was made possible. This was caused both by legally acceptable real estate practices of the time and also the dismantling of the former legally-protected racially segregated neighborhoods in the United States. Real estate agents and others were able to prey on the misguided fears of white homeowners concerned about the possibility of losing money in their property investments, once previously segregated neighborhoods were ordered to be open to all potential home buyers.
Blockbusting is very rare and prosecuted fully under the law in today's society. As a result to changes in law, blockbusting all but disappeared by the 1980s. Individual states increased protections against discriminatory housing and real estate transaction practices of their own accord, and the Fair Housing Act was implemented into federal law. It is interesting to note that some states have more inclusive and protective laws for minority groups than even federal protections boast. A state's own governmental website is the best place to look for information on state-specific housing laws.
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Looking for your dream home in Colorado, but can't decide if you want to buy real estate in Erie Texas or purchase Longmont real estate? You may consider letting a real estate agent help you in your property search.
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