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 the broker has a duty to inform the sellers about their financial standing, disclosing that the sellers owe more than the offer amount may not be necessary before presenting the offer. The primary obligation is to present the offer first, allowing sellers the opportunity to consider it in the context of their situation.

Holding the offer would violate the broker's fiduciary responsibility to the unrepresented buyers. The broker cannot prioritize potential future offers over the current one, as this could disadvantage the buyers who have made a legitimate offer on the property.

The listing broker cannot determine the acceptability of an offer on behalf of the sellers. It is not within the broker's purview to reject an offer outright without presenting it to the sellers first, as this decision rests solely with them.