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10:15 AM - Good news! We have received an offer on your home. The offe

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10:15 AM - Good news! We have received an offer on your home. The offe  [#permalink]

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New post Updated on: 23 Nov 2019, 01:37
Project IR Butler 2019-20 - Get one IR Question Everyday
Question # 40, Date : 09-Nov-2019
This post is a part of Project IR Butler 2019-20. Click here for Details


Message 1

Message sent from a real estate agent to his clients

10:15 AM - Good news! We have received an offer on your home. The offer is for $300,000. While I know this is quite a bit lower than your asking price, it is common for buyers to make an aggressively low bid to try to bring down the seller's price. Based on my experience, I expect that you can counter at a price of $345,000, and still end up agreeing on a price that is no lower than 10% below your asking price. Just let me know what you would like to do!


Message 2

Message sent from clients to their real estate agent, in response to the agent's 10:15 AM message

10:52 AM - We are glad to hear that someone has made an offer on our home! You are right, though. Their offer is very low compared to our asking price. While we understand that is the nature of negotiation, we are reluctant to give so much ground that we end up at a price that's too low for us. After giving it some thought, we think that making a counter offer at $350,000 makes sense. That gives us room to negotiate more if the buyer wants to make another counter offer. Also, there are other concessions we would be willing to make besides price, if you think that might help us reach a deal. Please communicate our counter offer to the buyer, and let us know how it goes.


Message 3

Message sent from a real estate agent to his clients, in response to their 10:52 AM message

12:28 PM - I talked to the buyers' agent, and it sounds as though they are willing to negotiate further on price, although the buyers have said that $350,000 is "a lot more' than they can afford. I also mentioned your willingness to negotiate on items other than price, and they have expressed that making this sale happen no later than mid-August appeals to them, they can get settled before the new school year starts for their children. I expect that, if you offer them a price of $330,000 and agree to make the deal happen by early August, they will agree to a deal. Please let me know what you would like to do.


Consider each of the following statements. Does the information in the three articles support the inference as stated?

YesNoValues
The home sellers' asking price for their home is at least $380,000.
For the buyers, the ability to complete the purchase before mid-August is more important than the final price of the home.
It is possible for the buyers and sellers to make a deal in which neither side needs to change its opening offer by more than 15%.
The sellers' real estate agent is more likely to accept a lower final price of the home than are the sellers themselves.


Spoiler: :: OA
No
No
Yes
No


Attachment:
OE 2 Veritas.jpg
OE 2 Veritas.jpg [ 273.93 KiB | Viewed 70 times ]

Originally posted by soaringAlone on 20 Jan 2013, 17:48.
Last edited by SajjadAhmad on 23 Nov 2019, 01:37, edited 3 times in total.
Updated - Complete topic (196).
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Re: 10:15 AM - Good news! We have received an offer on your home. The offe  [#permalink]

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New post 20 Jan 2013, 19:59
no we cannot infer as the agent makes a statement to which we get no response ie the last statement ,so without knowing what the buyers would have done with 330 we cannot say definitely ie they will accept lower or not .

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Re: 10:15 AM - Good news! We have received an offer on your home. The offe  [#permalink]

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New post 20 Feb 2013, 14:30
soaringAlone wrote:
Hi,

Can any one please explain the solution for fourth statement of veritas Multisource Reasoning Sample Question# 2.

http://www.veritasprep.com/sample-problems/?question=7

Since the sellers agent is more willing to drop the prices in the negotiation, can't we infer that The sellers' real estate agent is more likely to accept a lower final price of the home than are the sellers themselves.?


Hi soaringAlone, to elaborate on what Siddarth86 mentioned above, remember that the IR is part of the GMAT, which means that the same standards you'd have on any CR question must be upheld. In this case, we're looking for a "must be true" logical standard, and all we have is a "yeah could easily be true" inference from the text. If the sellers had written back saying "340K is the lowest we'll go", then you could infer the price points of both parties.

Furthermore, this question plays on people's preconceived notions. Most people believe that their real estate agents are willing to sell their houses for less than they're worth in order to maximize turnover. Most sellers would surmise that real estate agents would rather flip a house in one week for a reasonable price than put in 3 months work for an extra 2-5% on the selling price. This preconceived notion can lead to an erroneous answer choice on test day.

Whenever a GMAT question seems to be preying on your preconceived notions, you need to double check that the statements are supported 100% by the text and not being helped along by your own beliefs. In this case, it's entirely possible that the real estate agent wants to hold out for more than the buyers would, so the answer must be false as we're not completely sure either way.
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Re: 10:15 AM - Good news! We have received an offer on your home. The offe  [#permalink]

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New post 09 Nov 2019, 10:56
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Re: 10:15 AM - Good news! We have received an offer on your home. The offe   [#permalink] 09 Nov 2019, 10:56
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