Final answer:
It is true that a brokerage representing multiple buyers might not know they are interested in the same property until it becomes evident through expressions of interest. The listing brokerage can identify when multiple buyers from a single brokerage are competing since it knows the source of all buyers.
Step-by-step explanation:
True, when a brokerage is representing multiple prospective buyers in a single transaction, the knowledge about whether these buyers are interested in the same property might not be initially evident to the buyer's brokerage. It is only when one or more buyers express interest in the same property that this information becomes apparent. The listing brokerage, which is handling the selling side of the transaction, is in a position to know the source of all buyers and thus can identify this situation.
Imperfect Information in Market
When imperfect information exists in the market, it can be difficult for a buyer and seller to agree on a price because both parties may not have full knowledge of the market conditions or the true value of the property. Imperfect information can lead to a lack of trust or uncertainty regarding the fair market value, thus complicating the negotiation process.