2. A licensee lists four 2-bedroom condos priced $80k—$90k. A smaller, less-desirable unit sold last week for $62k. The agent advertises: “4 beautiful 2-bedroom townhomes — starting at $62,000.’ This ad is ___.
Answer: B
This ad is legal but somewhat deceptive in implying that there are four properties for sale at $62.
The advertisement is legal in that it uses the phrase "starting at," but it is misleading because it suggests that buyers can purchase one of the four condos for the lower price of $62,000, when none of the listed properties are priced that low.
A) perfectly acceptable since it includes the words 'starting at'
This option is incorrect because while the phrase "starting at" can make an advertisement more flexible, it does not absolve the misleading implication that all four condos can be purchased at that price. The context shows that this price refers to a different property that is not part of the advertised listings.
B) legal but somewhat deceptive in implying that there are four properties for sale at $62
This option is correct as the advertisement is technically legal due to its wording, yet it can mislead potential buyers into thinking they can buy one of the four condos for $62,000, which is not the case for the listed properties.
C) 000 or near that figure
This choice is incorrect because it also implies that buyers might find properties at or near the $62,000 price point among the four condos advertised. The actual prices of the listed condos are significantly higher, making this claim misleading.
D) an example of illegal 'bait and switch' selling tactics
This option is incorrect because the advertisement does not constitute illegal bait and switch tactics. Bait and switch involves advertising a product at a low price with the intent of not providing it, whereas this ad is legal but misleading without the intent to deceive outright.
Conclusion
Option B is the most accurate description of the advertisement's implications, highlighting its legality while also recognizing its potential to mislead consumers. The other options either mischaracterize the legality or fail to grasp the nuanced implications of the advertisement, reinforcing the importance of truthful representation in real estate advertising.