An owner requests a broker to list a property for sale at $70,000. Upon inspection, the broker believes the property is worth $80,000. The broker must:

• A. Inform the seller that the property is worth $80,000.
• B. Keep silent about the value
• C. Suggest increasing the listing price to $85,000
• D. Refuse to list the property

Answer: (A)

The main idea is that a broker has fiduciary duties to the seller, which include being honest and providing known material information that could affect decisions about selling the property. The estimated market value of the home is such information. If the broker believes the property is worth $80,000, that value is relevant to how the seller should price the listing. Sharing this information helps the seller make an informed decision about whether to list at $70,000 or adjust the price based on market reality. It also aligns with professional duties to avoid misrepresentation and to provide truthful guidance, supported by leads like a comparative market analysis or recent sales.

Keeping silent about the higher value would be withholding information the seller relies on to set a realistic price, which is not appropriate. Suggesting a higher price could be part of the discussion, but it should come after presenting the known valuation and supporting data. Refusing to list ignores the seller’s request, which isn’t warranted if the broker can act in the seller’s best interests.