What is puffing in real estate? Why must a seller avoid it?

In the real estate world, agents (and sellers) may use a bit of exaggeration to make properties sound more appealing. This is known as puffing. It’s all about making bold, subjective statements, such as “This is the best house on the block” to catch a buyer’s eye. But whether you’re a seller or a buyer, you need to know the ins and outs of puffing in order to handle the real estate market smartly. Let’s dive into what is puffing in real estate, why it’s allowed, and after what point it can go wrong.

What is puffing in real estate?

Puffing means making exaggerated or subjective statements to make a property sound more appealing. For instance, saying “This is the most beautiful home in the neighborhood”. It could be a seller’s doing or that of a real estate agent. It can mislead potential home buyers if they take these opinions as facts. As a buyer, you must always remember that these are opinions, not guarantees.

Puffing becomes a problem when it turns into misrepresentation or fraud. For example, saying “This home will appreciate more than others nearby just because of its location” crosses the line if it’s not true. Some puffing is fine and expected in real estate, but outright lying about a property’s qualities is not acceptable.

Is puffing illegal in the United States real estate industry?

Puffery, or puffing may be just exaggerated claims that are clearly opinions rather than factual representations. Puffing is legal as long as the statements made by the seller or agent are not fraudulent. Keep in mind that fraud involves deceit and false statements. So, if your real estate agent uses puffing and you end up with a deal you’re unhappy with, you can’t sue them for fraud.

Puffing vs. misrepresentation: What’s the difference?

Both are distinct concepts with different legal and practical implications. Puffing involves exaggerating claims about a property, such as an agent saying a house has “the best view in town,” which is a subjective opinion. This practice typically does not lead to legal action. However, it may result in disappointment or buyer’s remorse if they take these claims too seriously. 

In contrast, misrepresentation involves providing false or misleading information about a property. It could be falsely claiming that a house has new plumbing. This can be either intentional (fraud) or unintentional. Keep in mind that misrepresentation is illegal and can lead to significant consequences, including legal action, financial penalties, and potentially voiding the sale contract. 

The key differences between puffing and misrepresentation lie in the fact that puffing is opinion-based and generally harmless, whereas misrepresentation can lead to serious legal and financial repercussions.

How can you avoid getting misled by puffing in real estate deals? 

Keep in mind that puffing operates within ethical boundaries aimed at preventing misleading buyers. The home seller should stick to factual, verifiable information about the property. Moreover, clear and honest communication will help maintain credibility and trust with potential buyers. 

Furthermore, the buyer needs to make the final decision on a real estate transaction by verifying claims and doing their due diligence. Here are some of the things they can do to avoid puffing. 

Understand what is puffing in real estate 

Know that this is a common sales tactic. Statements by an agent may be subjective opinions designed to sell the property. Knowing this helps you take such claims with a grain of salt.

Verify the agent claims independently

Don’t rely solely on the agent’s descriptions. Verify any claims about the property yourself:

• Visit the property multiple times to get a real sense of the neighborhood.
• Talk to your potential neighbors. They can provide honest insights that you might not get from an agent.
• Hire a home inspector for an objective assessment of the property’s condition.
• Check public records and reliable platforms for any past issues, disputes, or home renovations.

Read more: Legal and financial facts every renovator should know

Always question the information 

If the agent claims the house has new plumbing or a new roof, ask for receipts or documentation of the work done. Look at other comparable properties in the area to see if the claims hold up. If every house in the area is described similarly, it might just be standard puffery.

Do a thorough research

Being well-informed is your best defense against being misled. Understand the local real estate market trends, the average home prices, crime rates in the area, school ratings, and future development plans. All these can give you a clearer picture.

FAQs

What should a buyer do if they find hidden problems after buying a house?

If a buyer finds hidden defects after purchasing a house, they should talk to a real estate attorney. They can help explore options such as negotiating home repairs, seeking compensation, or even canceling the sale.

Can exaggerating in real estate listings lead to legal trouble?

While puffing, or exaggerating, is usually legal because it involves opinions, it can lead to legal trouble if it turns into misrepresentation with false statements.

What is an example of puffing in real estate?

A good puffing example might be an agent making over-the-top comments about a property’s construction quality or a fantastic neighborhood. These are just inflated opinions.

Written by Ramona Sinha. November 24, 2024

Ramona is the Senior Content Writer for Kukun. This experienced blogger uses simple and succinct words to decipher the complex phenomenon called life. She has written articles covering a broad range of topics, such as real estate, lending and mortgage, finance, business, taxation, home designs, home improvement projects, decor concepts, and more. An avid traveler, she’s a digital nomad at heart and an animal lover from the depth of her soul.