This paper focuses on designing policies to eliminate discrimination in the sale of single-family houses by analyzing the behavior of the agents who actually do most of the discriminating, namely real estate agents. Discriminatory practices are said to be supported by policies of house builders, lending institutions, and government, and by the prejudice of the white majority. The paper analyzes the racial beliefs and practices of real estate brokers in an attempt to understand the economic incentives that lead brokers to discriminate against blacks. It is argued that a broker's job consists of three steps: (1) attracting customers, (2) matching customers with listings, and (3) finding financing for 'matched' customers. It is then shown that at each of these steps the structure of the real estate industry interacts with the racial prejudice of the white community and of brokers to give each broker economic incentives to discriminate against blacks. The techniques used by brokers to discriminate are also reviewed, and several proposals designed to eliminate broker discrimination are made: by eliminating brokers' control over information and by eliminating local boards' control over access to listing, one would eliminate the economic incentives to discriminate. (Author/JM)