Agency
A Texas buyer instructs their agent that they are willing to pay up to $480,000 for a property listed at $450,000. The agent should:
AImmediately offer $480,000 since the buyer said they would pay that much
BKeep the buyer's maximum price confidential and advise the buyer to make a strategic offer that may be below $480,000✓ Correct
CDisclose the buyer's maximum to the seller to build goodwill
DSubmit the offer at the list price without discussing strategy
Explanation
Information about the buyer's maximum willingness to pay is confidential. A buyer's agent should keep this information private and help the buyer make a strategic offer. Starting at the buyer's maximum eliminates any negotiating room. Good buyer representation involves advising on negotiating strategy and protecting the client's financial interests.
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