What term describes the practice of misleading clients regarding property value?

The practice of misleading clients about property value is accurately described by the term misrepresentation. Misrepresentation occurs when an agent intentionally or unintentionally provides false or misleading information to clients about the characteristics of a property, including its value. This can involve exaggerating a property’s worth, omitting critical information, or conveying an inaccurate portrayal of the property's condition or market potential.

Understanding misrepresentation is crucial in real estate, as it emphasizes the ethical responsibilities that agents hold toward their clients. Agents have a duty to provide accurate and honest assessments to ensure their clients can make informed decisions. Engaging in misrepresentation can lead to significant legal repercussions and damage to the agent's reputation.

In contrast, steering refers to the unethical practice of guiding prospective homebuyers towards or away from specific neighborhoods based on their race, religion, or other protected classifications. Blockbusting involves inducing property owners to sell at lower prices by creating fears of demographic changes in their neighborhood, often for the agent's financial gain. Agents' discretion relates to the latitude agents have in making decisions regarding their practices but does not specifically address the act of misleading clients about property value.