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 sellers' 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 true that the sellers would owe more than the offered amount due to their mortgage balance and associated fees, the broker's primary responsibility is to present the offer. Disclosing this information prematurely may influence the sellers' decision negatively, and it is not the broker's role to dissuade them from considering the offer.

Holding the offer would be unprofessional and potentially detrimental to the sellers. The broker must present all offers promptly, as the sellers might prefer to evaluate every possibility rather than wait for a better offer that may never come. This choice disregards the sellers' right to make their own decisions.

This choice would be inappropriate as it dismisses the buyer's offer without giving the sellers a chance to consider it. The broker cannot determine the acceptability of an offer on behalf of the sellers, as it is their prerogative to accept or reject any offer they receive.