Agency

In Oregon, an agent is showing property to a buyer who discloses they have been pre-approved up to $600,000 but are hoping to pay $500,000. What should the agent do with this information?

ADisclose the buyer's maximum budget to the seller immediately
BKeep the buyer's financial position confidential, but not use it to the detriment of the seller✓ Correct
CRefuse to represent the buyer unless they commit to their maximum budget
DNotify OREA of the buyer's strategy

Explanation

A buyer's agent owes their client confidentiality regarding negotiating position and financial capacity. The agent should not disclose to the seller that the buyer is pre-approved for more than their offer price. However, in a dual agency situation, this confidentiality must be carefully managed. The agent must not use the information to deceive the seller either.

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