Question

Agent Casandra has a motivated seller whose home is currently listed at $150,000. The seller is very motivated and has told her he will take $125,000, but doesn't wish to lower the asking price. Erik, from the same office, has shown the home twice this week to his buyer-client. Casandra tells Erik that the seller is highly motivated and will look at an offer as low as $125,000. Should Erik pass this information on to his buyer?

a) Yes, that information is not confidential.
b) Yes, but only if the buyer agrees to a dual agency arrangement.
c) No, the information is confidential.
d) No, he shouldn't tell unless the buyer specifically asks.

Answer 1

Erik should not pass on the information about the seller's motivation unless the buyer specifically asks for it in this situation.

Step-by-step explanation:

The correct answer is d) No, he shouldn't tell unless the buyer specifically asks.

As a real estate agent, Erik has a duty to act in the best interests of his client. By disclosing the seller's motivation to accept a lower offer, Erik would be compromising his buyer-client's negotiating position. As such, he should not pass on this information unless the buyer specifically asks for it.