Texas Crammer Practice Exam

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What must a salesperson disclose when a buyer reveals they have been pre-approved for a higher amount than their offer?

Nothing, as it is confidential information
The buyer's financial history to the seller
This information to the seller/client
Only the offer amount to the seller

The correct answer is: This information to the seller/client

When a buyer reveals that they have been pre-approved for a higher amount than their offer, the salesperson must disclose this information to the seller or their client because it can significantly influence the negotiation process and the seller's perception of the offer. Understanding the buyer's financial capability can lead to more productive discussions regarding price negotiations and other terms of the sale. This disclosure helps ensure transparency and can also position the seller to make informed decisions about counteroffers or accepting the offer. In real estate transactions, being open about a buyer's financial status fosters trust between all parties involved, which is crucial for a smooth transaction process.