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If a client requests to list their home for much more than the comparable market analysis (CMA) recommends, what is the duty of the salesperson?
Correct Answer: C
Areal estate licensee has a fiduciary duty to provide honest, professional advice to their clients, including pricing strategies based oncomparative market analysis (CMA). * Under 49 Pa. Code § 35.292 (Duties of Licensees Generally), a licensee must act in the best interest of the client, which includes providing realistic pricing guidance. * If a seller insists on listing at an inflated price, the agent should educate them on the risks, such as longer market time and reduced buyer interest. * While the agent cannot force a seller to list at a lower price, they must ensure that the client makes an informed decision. Why the other answers are incorrect: * Option A (Require an Appraisal):CMAs are typically sufficient for pricing; an appraisal is only required in specific cases (e.g., lender requirements). * Option B (Refuse the Listing):Overpricing is not illegal, so there is no licensing violation in accepting the listing. * Option D (Providing Investment Advice):Real estate licensees are not financial advisorsand should not offer investment strategies.
