A licensee is representing a seller. The licensee receives an offer of $150,000, but informed the buyer that he would be willing to pay up to $155,000. The licensee should

Refusing to present the $150,000 offer would be unethical and unprofessional. The licensee has a duty to present all offers to the seller, regardless of their opinion about the offer's adequacy. Not presenting the offer denies the seller the opportunity to consider it and could result in a loss of potential sale.

Informing the seller that the buyer is willing to pay $155,000 without proper confirmation from the buyer would be misleading. The licensee should not assume the buyer's willingness to increase the offer without explicit communication from the buyer, as this could lead to misunderstandings or unrealistic expectations.

Suggesting that the buyer make an initial offer of $152,500 would not be appropriate since the buyer has already made an offer of $150,000. The licensee should focus on negotiating with the existing offer rather than encouraging the buyer to submit a new one, which could complicate the negotiation process.