cssk wrote:
With problems in the mortgage industry and a declining economy, overall housing sales are down by more than 40% percent. Online real estate broker sites, however, have seen increased traffic and revenues are up by more than 10 percent in the slumping real estate market.
Each of the following, if true, helps to explain the improved performance of online real estate brokers during the housing slump EXCEPT:
A) During a slump in the housing market, buyers are more likely to shop online broker sites in search of the best possible price.
B) When the housing market is strong, both buyers and sellers rely on traditional real estate brokers in an order to buy or sell property more quickly.
C) The cost of selling a property with an online broker is a fraction of the cost of using a traditional real estate broker.
D) Online brokers devote more advertising resources to attracting customers during a downturn in the real estate market than do traditional retailers.
E) Customers of online brokers, but not customers of traditional brokers, can control the cost of listing and selling their house by choosing from a number of available packages and options.
Housing sales are down.
But online real estate broker sites have seen increased traffic and revenues.
Why? Four options will give a reason why this may be the case. Why online brokers may be doing better than what they were doing before the slump. So the point of distinction is before the slump vs during slump for online brokers.
A) During a slump in the housing market, buyers are more likely to shop online broker sites in search of the best possible price.
Helps explain. During a slump, people are more likely to shop online. Hence it explains why they may be doing better.
B) When the housing market is strong, both buyers and sellers rely on traditional real estate brokers in an order to buy or sell property more quickly.
Ok, this tells us what happens the market is strong but it doesn't tell us what happens when it is in a slump. Why are online brokers doing better now? In a slump, do people not rely on traditional brokers? We are not given.
Hence, this does not explain why online brokers are seeing more traffic in the days of slump.
C) The cost of selling a property with an online broker is a fraction of the cost of using a traditional real estate broker.
Makes sense. In a slump, people will likely look for cheaper options so that is why online broking might be flourishing.
D) Online brokers devote more advertising resources to attracting customers during a downturn in the real estate market than do traditional retailers.
During a slump, online brokers try to attract more customers than do traditional retailers. That is why online brokers may be getting more customers during the slump. Explains.
E) Customers of online brokers, but not customers of traditional brokers, can control the cost of listing and selling their house by choosing from a number of available packages and options.
Online brokers offer many different packages and hence customers can control the cost. During a slump then it sure sounds reasonable that people prefer online brokers.
Answer (B)
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