Question

A broker places an ad in the local newspaper stating an asking price of $249,000, but indicates in the ad that the seller is very motivated and the price and terms are negotiable. The owner of the property reads the advertisement and is upset because he wants the stated asking price. Which of the following statements is TRUE in this situation?

A. This kind of advertising is considered puffing
B. This is a customary practice intended to make the phone ring and bring in buyers
C. Indicating in the ad that the price is negotiable allows the seller to come down on the price at a later point in time. The seller makes the final decision as to what to accept.
D. This is a violation of fiduciary duty and implies that the owner will take less than the full price.

Answer 1

The correct statement is B. This is a customary practice intended to bring in buyers.

Step-by-step explanation:

The correct statement in this situation is B. This is a customary practice intended to make the phone ring and bring in buyers.

The broker's ad states that the asking price is $249,000 but also indicates that the price and terms are negotiable. This means that the seller is open to negotiating the price with potential buyers. The purpose of this type of advertising is to attract more potential buyers by creating a sense of urgency and flexibility in the pricing.

This practice is common in real estate and is not a violation of fiduciary duty. It allows the seller to start negotiations with interested buyers and make a final decision on the price based on the offers received.