Humber/Ontario Real Estate Course 3 Exam Practice

In offer negotiations, what right does a seller have when receiving multiple competing offers?

1. When a seller client receives two or more competing offers, they should accept the highest price offered.

2. When a seller client receives two or more competing offers, they have the right to accept the second highest offer, if they decide to do so.

3. The seller client must accept or counter one of the competing offers.

4. An offer received from the listing brokerage takes priority over any offer from a cooperating brokerage.

5. The seller must accept the first offer received.

6. Sellers must counter all offers to create a bidding war.

The correct answer is: When a seller client receives two or more competing offers, they have the right to accept the second highest offer, if they decide to do so.

In the context of offer negotiations, a seller has the right to choose any offer they wish to accept, including the option to accept the second highest offer if they find it more favorable for their situation. This flexibility allows sellers to consider various factors beyond just the price, such as the terms of the offer, the buyer's financing, contingencies, and their own timeline for selling. Sellers may prioritize an offer that aligns best with their own needs, which could be influenced by the buyer's financial stability, the proposed closing date, or other terms and conditions that might make one offer more attractive than another. This approach empowers sellers to assess all aspects of the offers in front of them and make a decision that they believe is in their best interest, rather than simply defaulting to the highest monetary offer. It reflects the reality of real estate transactions, where various strategic considerations can play a significant role in the acceptance of an offer.