Unrepresented buyers tell a listing broker they want to make a $120,000 offer on a house listed at $180,000. The listing broker knows that the seller's mortgage balance is $130,000 and they will owe a 7% brokerage fee plus approximately $1,500 in additional closing costs. In this situation, the listing broker SHOULD:

While it is important for the broker to inform the sellers about their financial situation, including the mortgage balance and closing costs, simply disclosing this information does not address the broker's responsibility to present all offers. The decision to accept or reject an offer rests with the sellers, and they may wish to consider the offer despite the financial implications.

Holding the offer is not advisable, as it denies the sellers the opportunity to evaluate the current offer. The market can be unpredictable, and failing to present an offer could result in losing a potential buyer. It is essential for the listing broker to act promptly and transparently by bringing all offers to the sellers’ attention.

Informing the buyer that the offer is unacceptable would be inappropriate, as it is not the broker's role to evaluate the validity of offers on behalf of the sellers. Instead, the broker should present the offer for the sellers’ consideration, allowing them to determine its acceptability based on their situation.