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In a closed offer process, what information can a buyer or Salesperson ask the listing brokerage to disclose under specific circumstances related to competing offers?

A. The terms and details of all received offers.
B. The number of other offers received in a competing offer situation only.
C. The seller's preferences for offer terms.
D. The reasons behind the seller's decision-making process.

Which option accurately describes the information that can be requested in a closed offer process regarding competing offers?

1 Answer

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Final answer:

In a closed offer process, a buyer or salesperson can only request the number of other offers received, not the terms or details of those offers, sellers' preferences, or their decision-making reasons.

Step-by-step explanation:

The information that a buyer or salesperson can request from the listing brokerage under specific circumstances related to competing offers in a closed offer process is option B: The number of other offers received in a competing offer situation only. Buyers and sellers in a real estate market, just like in other markets, must act independently and possess a competitive spirit. Moreover, they should be well informed of market conditions to make educated decisions. A critical point in the market dynamics is the availability and asymmetry of information.

When imperfect information exists, it becomes difficult for buyers and sellers to agree on a price because the price reflects all known information. In cases where certain information like the terms and details of competing offers, the seller's preferences, or the reasoning behind their decisions is not disclosed or is unknown, it can lead to an inability to reach an optimal price agreement that satisfies both parties. This perfectly aligns with the laws of supply and demand wherein the price reflects what buyers and sellers collectively know and believe.

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