What does it mean when a seller states a house is larger than it actually is?

When a seller states that a house is larger than it actually is, this situation falls under the category of misrepresentation. Misrepresentation involves providing false or misleading information regarding a property, which can significantly influence a buyer's decision-making process. In real estate, accurate disclosures about a property's size, features, and condition are essential for transparency and trust between buyers and sellers.

If a seller exaggerates the size of the house, it can lead to buyers making uninformed decisions based on incorrect information, which is a violation of ethical and legal standards in real estate transactions. This misrepresentation does not necessarily imply an intent to deceive (which would move into the realm of fraud), but it is still a serious issue as it compromises the integrity of the transaction.

In contrast, overvaluation refers to setting a price higher than the market value based on actual characteristics, while a fraudulent claim would indicate intentional deceit with legal consequences. Insufficient inspection relates to a scenario where physical aspects of the property are not thoroughly examined, but does not directly address the act of misrepresenting the property's size itself. Therefore, misrepresentation is the most accurate term to describe the scenario where a seller inaccurately states the dimensions of a home.