In a multiple offer situation, which statement about sale prices is true?

• A. In multiple offer situations, properties often sell for more than the list price.
• B. They always sell for the list price.
• C. It is impossible to know.
• D. They never sell above the list price.

Answer: (A)

When buyers compete, prices tend to rise above the asking price. The list price is just a starting point, not a cap, and in a multiple-offer situation the seller can choose the strongest offer or combine price with favorable terms, sometimes using escalation clauses that automatically raise the bid above the next highest offer. Because of this competition, sale prices often exceed the list price. It's not guaranteed—there are markets or scenarios where the price ends up at or near the list price or even below—but in a multiple-offer context, exceeding the list price is the common outcome.