A property is listed for $125,000. It was appraised at $128,500 by the FHA. Out-of-town buyers tell the listing licensee they want to offer $110,500 for the property. The licensee should

While it is reasonable to consider the appraisal value when negotiating, the licensee cannot insist on a higher offer as it may deter the buyers. The buyers have the right to offer any price they deem appropriate, and the licensee's role is to facilitate negotiations rather than dictate terms.

This approach does not directly address the buyers' interest in making an offer and could be seen as unprofessional or manipulative. Instead, the licensee should focus on presenting the buyers' offer as it stands, respecting their budget and intentions while providing guidance as needed.

Refusing to present an offer based on its percentage below the listing price is not appropriate. The licensee has a duty to present all offers regardless of their alignment with the listing price, as it is the seller's decision to accept, reject, or negotiate any offer.