Humber/Ontario Real Estate Course 4 Exam Practice

Which statement is true about handling multiple offers in a seller's market?

1. All offers must be presented to the seller at the same time.

2. Buyers must be informed of the details of competing offers.

3. Only verbal offers should be considered.

4. The listing salesperson will inform all buyers about the number of offers.

5. Written offers can be ignored if verbal offers are better.

6. Only the highest offer is considered by the seller.

The correct answer is: The listing salesperson will inform all buyers about the number of offers.

In a seller's market, where demand often exceeds supply, transparency in the multiple offer process is critical for maintaining fairness and trust among buyers. The statement specifying that the listing salesperson will inform all buyers about the number of offers is true because it adheres to ethical practices in real estate. This communication helps foster a competitive atmosphere while ensuring that buyers feel they have a fair chance in the bidding process. Informing buyers about the number of competing offers assists them in making informed decisions. It can influence their strategies, such as whether to improve their offer or remain at their current bid. Though specific details of each offer may not be disclosed due to confidentiality, knowing the number of offers can guide buyers in formulating their approach. The other options do not align with standard practices or regulations. For example, presenting all offers at the same time, informing buyers about competing offers in detail, or ignoring written offers in favor of verbal ones do not reflect fair or ethical standards in real estate practices. Moreover, only considering the highest offer dismisses the potential for creative terms that might eventually lead to a more favorable outcome for the seller than just the monetary value alone.