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Due to the recent boom in the housing market

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Due to the recent boom in the housing market  [#permalink]

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New post Updated on: 18 Jun 2018, 10:24
3
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A
B
C
D
E

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  95% (hard)

Question Stats:

47% (01:44) correct 53% (02:15) wrong based on 352 sessions

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Due to the recent boom in the housing market, home prices have risen to levels unattainable by a significant portion of the working public. There are currently no regulations in place that require real estate listings to include an asking price, and in a recent consumer interest survey, it was determined that homes listed with prices eventually sold for amounts substantially lower than homes that were listed without prices. Clearly, the listings with asking prices foster competition among one another that results in savings for the home buyer. Therefore, in order to facilitate home ownership, I propose new legislation requiring real estate listings to include a current asking price.

Which of the following if true seriously undermine the argument for new legislation?

A. The proposed regulation would most likely result in fewer home showings because potential buyers might restrict their visits to homes within their budgetary constraints.
B. Currently, homes listed with asking prices are generally appraised at lower values than homes listed without.
C. There have been several recently imposed regulations aimed at facilitating home ownership.
D. Often, determining factor in whether or not a listing includes an asking price is simply the real estate agent's preference.
E. The proposed legislation would impede the operation of a free market and ultimately cause more harm than good.

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Originally posted by Adi93 on 21 Apr 2018, 01:52.
Last edited by Skywalker18 on 18 Jun 2018, 10:24, edited 2 times in total.
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Re: Due to the recent boom in the housing market  [#permalink]

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New post 23 Apr 2018, 18:41
I guessed A, is there a full explanation to this problem?

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Re: Due to the recent boom in the housing market  [#permalink]

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New post 12 Jul 2018, 01:14
Dear GMAT Ninja,
As usual, please help dissect the question.

Thanks!.
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Re: Due to the recent boom in the housing market  [#permalink]

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New post 21 Jul 2018, 10:15
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We have to target answer choice that says what drawbacks will occur on "implementation of the proposed plan/ new legislation"

Options that do not talk about the proposed legislation are incorrect.

A. The proposed regulation would most likely result in fewer home showings because potential buyers might restrict their visits to homes within their budgetary constraints. Proposed legislation drawback - No competition. Hence ,correct.
B. Currently, homes listed with asking prices are generally appraised at lower values than homes listed without. (Nothing related to proposed legislation)
C. There have been several recently imposed regulations aimed at facilitating home ownership. (What about the current legislation?)
D. Often, determining factor in whether or not a listing includes an asking price is simply the real estate agent's preference. (Nothing related to the proposed legislation)
E. The proposed legislation would impede the operation of a free market and ultimately cause more harm than good.(Cannot be inferred)
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Re: Due to the recent boom in the housing market  [#permalink]

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New post 21 Jul 2018, 10:28
Not clear why A would dent the new legislation since the law would help the home buyers, but by restricting their budget they are eventually saving money so the legislation is beneficial.
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Re: Due to the recent boom in the housing market  [#permalink]

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New post 21 Jul 2018, 10:52
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After proposal of legislation "all" homes listed with asking price, so home buyers visited only those houses which fell in their budget. So less house visits, less competition, less price reduction, less savings.

Earlier "not all" homes listed with asking price, so home buyers visited more houses (until they found a home within their budget), hence greater competition, more price reduction, more savings.
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Re: Due to the recent boom in the housing market  [#permalink]

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New post 21 Jul 2018, 12:44
Adi93 wrote:
Due to the recent boom in the housing market, home prices have risen to levels unattainable by a significant portion of the working public. There are currently no regulations in place that require real estate listings to include an asking price, and in a recent consumer interest survey, it was determined that homes listed with prices eventually sold for amounts substantially lower than homes that were listed without prices. Clearly, the listings with asking prices foster competition among one another that results in savings for the home buyer. Therefore, in order to facilitate home ownership, I propose new legislation requiring real estate listings to include a current asking price.

Which of the following if true seriously undermine the argument for new legislation?

A. The proposed regulation would most likely result in fewer home showings because potential buyers might restrict their visits to homes within their budgetary constraints.
B. Currently, homes listed with asking prices are generally appraised at lower values than homes listed without.
C. There have been several recently imposed regulations aimed at facilitating home ownership.
D. Often, determining factor in whether or not a listing includes an asking price is simply the real estate agent's preference.
E. The proposed legislation would impede the operation of a free market and ultimately cause more harm than good.




My 2 cents:
conclusion:++ home ownership >> New legis to include the current asking price(which was lower than the unlisted houses got sold to owners.)

Prethinking:(NEW INFO )
1. less ppl to show up as previously ppl got better deals without the new regulations.thereby decreasing the HO.

Choices:
1. less visits less HO(keep it)
2.premise itself dont show the correlation of --HO. OUT
3. This talks about other regulation facilitating HO but we dont the effect can be positive or negative. OUT
4. OOS
5. Trap. More harm than Good of what is it talking abt the HO or the possession duration or the amenities bla bla... OUT

A is the best possible answer.
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Re: Due to the recent boom in the housing market  [#permalink]

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New post 21 Jul 2018, 21:58
IMO , it's A.

A doesn't justify completely but it's the best of the available answer choices. None of the other choices undermine the argument more than A.

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Re: Due to the recent boom in the housing market  [#permalink]

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New post 22 Jul 2018, 21:47
Plz give me an explanation on option D i'm bit confused

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Re: Due to the recent boom in the housing market  [#permalink]

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New post 23 Jul 2018, 01:35
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Hope your preparation is going well.
Anything that would undermine the plan of implementing the new legislation would be considered the right answer.

A. (correct) the purpose of this argument is to facilitate home ownership by proposing a new legislation. This statement undermines the argument as it suggests that this regulation will reduce home showings which will, in turn, reduce the number of homes being bought. Thus ownership will also reduce which opposes the purpose.
B. This statement strengthens the argument as it suggests that homes listed with asking prices are sold at lower values. These lower values will increase the number of potential buyers thus increasing homeownership.
C. There's nothing that mentions about the current legislation regarding the inclusion of the then current asking price.
D. This statement is out of scope since there's no real estate agent.
E. This statement is irrelevant and nothing can be inferred from it.
Hope this helps.
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Re: Due to the recent boom in the housing market &nbs [#permalink] 23 Jul 2018, 01:35
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