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# Due to the recent boom in the housing market, home prices have risen t

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Intern
Joined: 13 Apr 2019
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Due to the recent boom in the housing market, home prices have risen t  [#permalink]

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13 Apr 2019, 08:18
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Difficulty:

75% (hard)

Question Stats:

51% (02:26) correct 49% (02:22) wrong based on 78 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 amongst 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, would most seriously undermine the argument for new legislation above?

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, the 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 on the operation of a free market and ultimately cause more harm than good.
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Re: Due to the recent boom in the housing market, home prices have risen t  [#permalink]

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13 Apr 2019, 08:34
Choice B directly counters the conclusion in the passage upon which the proposed legislation was based. Specifically, choice B suggests that listings with asking prices are already valued lower than listings without and this fact explains the results of the consumer survey. Thus, the author's conclusion that listings with prices foster competition and result in a lower sale price is contradicted.
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Re: Due to the recent boom in the housing market, home prices have risen t  [#permalink]

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13 Apr 2019, 08:47
IMO B ,

the "listing with asking price will reduce the prices" is the main cause for new legislation

Option B is saying the same effect even without legislation , so we may even not need the new legislation at all .

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Re: Due to the recent boom in the housing market, home prices have risen t  [#permalink]

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13 Apr 2019, 09:09
2
It is a "Cause and Effect" type of argument.

so, weakening strategies are usually either:
1. introducing another causes of Y
2. proving that the X and Y are coincidental
3. showing that Y causes X (reversed cause and effect)

premise:
1. rise in real estate prices
3. homes listed with price are sold more

Conclusion:
* homes listed with asking price (X) -------> foster competition -------> reduce price (Y) -----> savings for home buyers

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.
Out of scope: we are not concerned with number of homes showing, but concerned with lower the price of homes.

B. Currently, homes listed with asking prices are generally appraised at lower values than homes listed without.
Introducing another causes of Y: showing that the reason for more selling is NOT because of the listing, but because of the already low price offered.

C. There have been several recently imposed regulations aimed at facilitating home ownership.
irrelevant: the presence of other regulations doesn't mean that new regulations would not be effective

D. Often, the determining factor in whether or not a listing includes an asking price is simply the real estate agent's preference.
it can be strengthening, not weakening, because regulation would reduce the influence of the real estate agents on the price and lower it.

E. The proposed legislation would impede on the operation of a free market and ultimately cause more harm than good.
irrelevant: regulation may or may not cause harm is not the case. It is not discussing its effect on the price.
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Re: Due to the recent boom in the housing market, home prices have risen t   [#permalink] 13 Apr 2019, 09:09
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