Humber/Ontario Real Estate Course 4 Exam Practice

If a seller receives multiple offers, what would be a proper course of action?

1. Request new offers to be submitted by a specific time

2. Counter the offers with the same higher asking price

3. Discuss a new price over the phone with unconditional buyer

4. Disclose details of all offers to ensure fairness

5. Accept the highest offer without conditions

6. Consult with a lawyer for the best strategy

The correct answer is: Request new offers to be submitted by a specific time

Requesting new offers to be submitted by a specific time is a strategic approach when a seller receives multiple offers. This method allows the seller to create a sense of urgency among potential buyers, encouraging them to present their best and final offers by a set deadline. It maintains a fair competitive environment and ensures that all interested parties have an equal opportunity to improve their offers based on the knowledge of competition. This approach also simplifies the seller's decision-making process, as they can evaluate the most attractive offers received by the specified time. By not disclosing specific details about the current offers, the seller can preserve negotiation leverage and encourage buyers to compete more aggressively for the property. This strategy is widely recognized in real estate practices and helps foster a transparent process while maximizing the seller's return on their property. It is important to maintain ethical standards and policies that allow fairness in negotiations, making this option the most appropriate course of action.