Agency
A Minnesota buyer's agent is working with a buyer who wants to submit an offer significantly over the list price due to a competitive market. The agent should:
ARefuse to submit the offer since it is over list price
BAdvise the buyer on the risks and strategies, then follow the buyer's instructions✓ Correct
COnly submit the offer if they believe it will be accepted
DRequire the buyer to obtain lender approval for the over-ask amount first
Explanation
In competitive markets like the Twin Cities, offers over list price are common. The buyer's agent should advise the client on market conditions, comparable sales, appraisal risk (if financing), and strategies for making competitive offers. Ultimately, the buyer makes the decision on offer price. The agent's role is to advise and execute the buyer's lawful instructions.
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