Humber/Ontario Real Estate Course 4 Exam Practice

In a multiple offer scenario, what is the best practice for a listing agent?

1. Disclose the highest offer to all parties.

2. Ensure all offers are presented in a timely manner.

3. Accept the first offer received.

4. Encourage a bidding war.

5. Notify all buyers of the multiple offer situation.

6. Follow seller's instructions diligently.

The correct answer is: Ensure all offers are presented in a timely manner.

The best practice for a listing agent in a multiple offer scenario is to ensure all offers are presented in a timely manner. This approach aligns with the principle of professionalism and transparency in real estate transactions. When offers are presented promptly, it allows the seller to make informed decisions and ensures that all potential buyers are given a fair opportunity to have their offers considered. Timeliness helps maintain trust and integrity within the transaction process, which is vital for both the seller and the buyers involved. Other choices may not support the best practices in handling multiple offers. For instance, disclosing the highest offer could create an unfair advantage and lead to ethical concerns, while simply accepting the first offer does not take into account the possibility of better terms being available later. Encouraging a bidding war can backfire, potentially alienating buyers. Notifying all buyers of the multiple offer situation is important, but it should be coupled with timely presentation of offers for a more comprehensive approach. Following the seller's instructions is critical, but if those instructions lead to a delay in presenting offers, it could hinder the seller's ability to secure the best deal.