Final answer:
The option that does not represent an advantage of using escrow in the sale of real estate is 'Lower transaction costs.' Escrow can increase transaction costs due to additional fees, unlike its benefits such as facilitating transactions, providing protection, and avoiding confrontations.
Step-by-step explanation:
The question aims to identify which option is NOT an advantage of using escrow in a sale of real estate. An escrow service is crucial in situations of imperfect information during economic transactions and helps facilitate mutually beneficial outcomes despite this imperfect information. Among the options provided, the one that is NOT an advantage of using escrow is 'B. Lower transaction costs.' Escrow services add an additional layer to the transaction which comes with fees, potentially increasing the overall cost of the transaction. Conversely, facilitation of interstate transactions, protection against a party's change of mind, and avoidance of confrontations are indeed advantages offered by escrow services.