Potential misrepresentation in real estate can lead to which of the following?

Potential misrepresentation in real estate can lead to a loss of buyer trust and possible lawsuits because trust is a fundamental component of any real estate transaction. When a property is misrepresented, whether through exaggeration of its features, failure to disclose issues, or providing inaccurate information, buyers feel deceived. This deception undermines their confidence in the transaction and can result in a desire to take legal action against the seller or their agent for damages.

Additionally, a loss of buyer trust can have long-term repercussions. Once trust is broken, it becomes difficult for sellers to negotiate or maintain credibility in future transactions. Potential buyers may become wary and less inclined to purchase properties from sellers with a history of misrepresentation.

In contrast, factors like increased property value, enhanced seller reputation, and faster selling times are often contingent on the integrity and accuracy of information provided during the sale process. Misrepresentation typically leads to negative outcomes, making the consequences cited in the correct answer more probable.