Oregon Broker PSI Practice Exam

What must happen if there are multiple offers on a property?

1. All offers must be given to the seller in no particular order

2. Only the highest offer must be presented

3. Offers must be ranked by the agent

4. All offers should be rejected

The correct answer is: All offers must be given to the seller in no particular order

When there are multiple offers on a property, the correct approach is that all offers must be presented to the seller. This ensures transparency and allows the seller to review all potential opportunities rather than just focusing on one. Presenting every offer facilitates the seller’s decision-making process, enabling them to choose the best option based on their needs, be it the highest price, the best terms, or a combination of other factors. By providing all offers without prioritization, the agent upholds their fiduciary duty to act in the seller's best interest. This practice not only cultivates trust but also complies with ethical standards outlined in real estate practices, which require agents to fully disclose all information to their clients. This approach also gives sellers the ability to negotiate and potentially create a bidding war, which could lead to better terms and prices. In contrast, considering only the highest offer or ranking the offers could lead to unfair practices and might not represent the seller's best interests. Similarly, rejecting all offers would be counterproductive, as it would eliminate any potential for a sale. Therefore, presenting all offers without bias is the best course of action when multiple offers are received.