Which of the following best defines "puffing" in real estate?

The definition of "puffing" in real estate is best characterized as the making of exaggerated claims to achieve a sale. This practice often involves providing statements that may not be entirely truthful or that inflate the benefits of a property to entice potential buyers. While puffing can be a common practice in sales, it is important to note that it is not necessarily considered fraud, as it typically deals with opinions rather than factual misrepresentations.

In contrast, the other options do not accurately reflect the concept of puffing. A legal term for property appraisal pertains to the formal determination of a property's market value, which is separate from the persuasive tactics of puffing. A method of negotiating property prices involves strategies employed during the negotiation process, which may or may not include puffing. A requirement for home inspections refers to the mandated evaluations of a property’s condition before purchase, unrelated to the promotional exaggeration involved in puffing. Therefore, the correct choice provides a clear understanding of puffing as a representation tactic used in real estate sales.