Question

An agent receives an offer of $350,000 on a property that she has listed for $355,000. When she is about to present the offer to the sellers, another offer comes in for $300,000. She should: A. present the lower offer only if the sellers reject the higher offer B. present both offers at the same time C. present the higher offer only after the sellers reject the lower offer D. discard the lower offer, as it is clearly frivolous

Answer 1

Answer: B. Present both offers at the same time.

Explanation: Working as an estate agent requires being a intermediary or a bridge between the transacting parties. Even though the agent might receive different offers as regards the property, the final decision to sell lies with the legal owner. In the case of selling a property, Agents are charged with the responsibility of feeding inquiring dealers or buyers with required information they may need. However, under no circumstance should an agent make a decision on who to sell to or the final selling price without the consent of the owner, even if the seller seems very unlikely to accept such offer.

In the context above, the agent is expected to present both offers to the seller at the same time and leave the seller to make the final decision on whom to sell to.

Answer 2

Answer:

b. present both offers at the same time

Explanation:

An agent should be Palin and explicit with his principal and in this sense should present all relevant details that would affect the principal on agreement made. In the above case, the agent must present all offers to the principal regardless of whether they seem unfavourable to the principal/seller and also in a timely manner. It does not matter therefore if the offers don't look good and that the seller is likely to reject it so long as the agent gives all information concerning all offers.