Humber/Ontario Real Estate Course 2 Exam Practice

If a buyer asks if the seller will accept a lower price, how should the salesperson respond?

1. Discuss any personal opinions on the sale price.

2. Disclose the brokerage's role and advise the buyer that such information is confidential.

3. Share any information available publicly.

4. Indirectly hint at the negotiation terms.

5. List the competitive sales in the area.

6. Make subjective comments on the property's value.

The correct answer is: Disclose the brokerage's role and advise the buyer that such information is confidential.

The correct answer is B. In this scenario, the salesperson should disclose the brokerage's role and inform the buyer that such information regarding the seller's flexibility on price is confidential. This is important because as a representative of the seller, the salesperson has a duty to maintain confidentiality and not disclose sensitive negotiation information without authorization. By reminding the buyer of the confidential nature of the negotiation process, the salesperson adheres to ethical standards and protects the interests of their client, the seller. Option A is incorrect as discussing personal opinions on the sale price can be biased and may not align with the seller's best interests. Option C is incorrect as sharing any public information may not always be in the best interest of the seller during negotiations. Option D is incorrect as indirectly hinting at negotiation terms may not be professional or ethical. Option E is not the best approach as simply listing competitive sales in the area may not directly address the buyer's question about a possible lower price. Option F is incorrect as making subjective comments on the property's value could be misleading and should be avoided in this situation to maintain professionalism and integrity in the negotiation process.