Final answer:
A broker must disclose if a felony occurred on the property to a potential buyer because it's considered material information affecting the property's value. Sellers can reassure buyers through transparency and accurate disclosures, including known issues and third-party inspections. Buyers should perform due diligence and consider pricing cues to assess the property's desirability.
Step-by-step explanation:
A broker for the seller is required to disclose to a potential buyer facts about the property that may significantly affect its value or desirability, including material defects or major issues. Among the choices provided, the correct answer is that a broker must disclose if a felony occurred on the property. This is because such an event might affect the buyer's decision and is often considered a material fact that can impact the property's attractiveness or value. Personal preferences or circumstances of the seller, such as not liking the house or moving out of state, are not required disclosures. Sellers can reassure potential buyers by being transparent about the property's condition and providing accurate information.
In the scenario of imperfect information, sellers can build trust by offering comprehensive disclosures of known issues, obtaining third-party inspections to verify the condition, and being open to negotiate based on the findings. Prices often reflect the level of information available, and sellers might adjust prices to account for imperfections that buyers cannot easily verify.
It is important for buyers to perform due diligence, which may include personal inspections, review of disclosures, and sometimes even drive-by assessments to confirm or deny assumed limitations or benefits inferred by pricing cues.