Humber/Ontario Real Estate Course 2 Exam Practice

Seller Ng is listing her home in a seller's market and wants to know how to handle multiple offers. Which is correct?

1. Each buyer will know the price of competing offers

2. Only the best offer is presented to the seller

3. Seller Ng must consider both verbal and written offers

4. The listing salesperson informs all buyers about the number of competing offers

5. All buyers submit their highest offers in a round-robin process

The correct answer is: The listing salesperson informs all buyers about the number of competing offers

In a multiple-offer situation in a seller's market, the correct approach is for the listing salesperson to inform all buyers about the number of competing offers. This transparency helps create a fair and competitive environment where all buyers have a clear understanding of the level of competition they are facing. By sharing this information, the listing salesperson ensures that all buyers are well-informed and can make their best offer accordingly. This process also helps in maximizing the final selling price for the seller. Options A, B, C, and E are not correct because in a multiple-offer scenario, it is crucial to maintain transparency and fair dealings between all parties involved. Sharing the price of competing offers with each buyer (Option A) or only presenting the best offer to the seller (Option B) can be considered unethical and may not result in the best outcome for the seller. While considering both verbal and written offers (Option C) is important, it is equally essential to provide a level playing field for all buyers by disclosing the number of competing offers. Additionally, having all buyers submit their highest offers in a round-robin process (Option E) may not be the most efficient or effective way to handle multiple offers in a competitive market.