What effect does a co-owner's inability to sell a property's shared interest have on its value?

The inability of a co-owner to sell their share of a property typically reduces its attractiveness to potential buyers, which is why the correct answer is that it keeps potential buyers away. When buyers are considering an investment in real estate, they usually prefer properties where ownership interests can be freely transferred. If there's a restriction preventing one co-owner from selling their share, the potential for complications increases, making the investment less appealing to prospective buyers.

This lack of marketability can also introduce uncertainty regarding the property's use and future market value. Buyers might worry about how the remaining co-owners may affect their enjoyment and use of the property, or they might concern themselves with the potential difficulties in resolving ownership disputes in the future. Overall, such a situation creates a less favorable environment for selling, ultimately impacting the property's desirability and, consequently, its value.