If a broker believes a property is worth more than the owner’s listed price, what must the broker do?

When a broker believes that a property is undervalued and worth more than the owner's listed price, the appropriate course of action is to inform the seller of their opinion regarding the property's market value. This is important for several reasons.

Firstly, real estate professionals have a fiduciary duty to act in the best interests of their clients. By communicating their assessment of the property’s value, the broker ensures that the seller has the necessary information to make an informed decision regarding pricing. This can help the seller potentially achieve a better outcome and maximize their profit when selling the property.

Additionally, discussing the property’s true value allows for an open dialogue between the broker and the seller, fostering a collaborative approach to marketing the property effectively. This can lead to adjusting the listing price to reflect fair market value based on current market conditions and comparable properties.

Overall, keeping the seller informed aligns with professional standards of practice and helps maintain trust and transparency in the broker-client relationship.