National Real Estate Exam (PSI)Practice of Real EstateMedium
A brokerage advertises a home at an unusually low price to generate calls, but tells every interested buyer the home 'just sold' and instead tries to interest them in higher-priced listings. This practice is known as:
- ANet listing promotion
- BBait-and-switch advertising
- CBlind advertising
- DPuffing
Show answer & explanationAnswer & explanation
Correct answer: B. Bait-and-switch advertising
Bait-and-switch advertising involves advertising a property, often at an attractive price, that is not actually available, in order to lure buyers toward other properties. This deceptive practice violates advertising regulations and consumer protection laws.
Why the other options are wrong
- A. Net listing promotion refers to a compensation structure, unrelated to deceptive ad tactics.
- C. Blind advertising refers to omitting the brokerage's name/license info, not a fake price lure.
- D. Puffing involves exaggerated but non-fraudulent opinions about a property's qualities, not fake listings.
Bait-and-Switch Advertising
A deceptive advertising practice of promoting an attractive but unavailable listing to lure customers toward other, often less favorable, options.
- Considered fraudulent and unethical under advertising regulations
- Differs from puffing, which involves subjective exaggeration, not falsehood
- Can result in license discipline and consumer protection violations
Memory trick: Hook them with a low price, then switch the catch.