Texas Crammer Practice Exam

What should a listing agent not do when negotiating offers from prospective buyers?

1. Reveal seller’s minimum acceptable price

2. Encourage buyers to bid higher

3. Present all offers to the seller

4. Provide market trend information

The correct answer is: Reveal seller’s minimum acceptable price

A listing agent should not reveal the seller's minimum acceptable price during negotiations because doing so can undermine the seller's position and negotiating power. When prospective buyers are aware of the seller's bottom line, they may structure their offers to take advantage of this information, potentially leading to a lower final sale price. The primary goal of the listing agent is to act in the best interests of the seller while maximizing the sale price. Keeping sensitive information, such as the minimum acceptable price, confidential helps maintain a competitive bidding environment. By not disclosing this information, the listing agent can encourage multiple offers and create a situation where buyers might bid against each other, thus driving up the final sale price. In contrast, encouraging buyers to bid higher, presenting all offers to the seller, and providing market trend information are all constructive actions that promote transparency and enable the seller to make informed decisions. These strategies align with the agent's duty to effectively represent and negotiate on behalf of the seller.