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 $150,000 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 owe more on their mortgage than the offer amount, disclosing this information without presenting the offer undermines the sellers' opportunity to evaluate their options. The listing broker's primary duty is to communicate offers rather than filter them based on potential financial outcomes.

Withholding an offer can be detrimental to the seller's interests, as it may prevent them from capitalizing on any potential sale, regardless of the offer's attractiveness. The broker must act in the best interest of the seller by presenting all offers received promptly.

Telling the buyer that their offer is unacceptable does not align with the broker's obligation to represent the seller's best interests. The decision to accept or reject the offer should lie with the seller after all relevant information is presented, rather than being dismissed outright by the broker.