A vendor instructs their agent not to accept offers below $500,000, but the agent believes the property is only worth $450,000 based on recent comparable sales. What is the agent's best course of action?
Correct Answer
C) Give the vendor a market analysis and professional advice on a realistic price
The agent must provide professional advice based on market evidence while respecting the vendor's ultimate decision. This balances the duty to follow lawful instructions with the obligation to provide competent professional service and honest advice.
Why This Is the Correct Answer
The agent must give honest, evidence-based advice even when it is unwelcome. Showing the vendor the comparable sales and a realistic price lets the vendor make an informed decision, which remains the vendor's to make.
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Previous Question
A vendor asks their agent to only show the property to 'suitable buyers' and specifically requests not to show it to people from certain ethnic backgrounds. How should the agent respond?
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A vendor instructs their agent not to accept offers below $800,000. The agent receives an offer for $750,000. What should the agent do?