AgencyIntermediateAlaska Exam

A real estate agent who suggests a listing price that is unrealistically high to induce a seller to sign a listing agreement is engaging in:

APuffery, which is legally permissible
BOverpricing strategy, which is a valid negotiating tool
CIntentional misrepresentation or 'buying the listing'Correct
DA legal method of maximizing seller expectations

Why Intentional misrepresentation or 'buying the listing' Is Correct

Answer C: Intentional misrepresentation or 'buying the listing'

'Buying the listing' by suggesting an inflated price to secure a listing agreement, with no reasonable basis for that price, constitutes misrepresentation. It harms the seller by leading to extended market time, eventual price reductions, and a stigmatized listing.

Exam Tip: Agency

Agency questions are among the most tested on the exam. Focus on the difference between client and customer, and memorize the fiduciary duties (OLD CAR). Watch for questions that try to blur the line between a general agent and a special agent.

Key Agency Terms in This Question

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