In the year 2011 real estate agents and brokers received more than $10

Question

In the year 2011 real estate agents and brokers received more than $100 billion in commissions on sales of residential and commercial property. The majority of that sum came in the form of the standard 6 percent charged on the sale of residential homes: 3 percent to the agent representing the buyer, and 3 percent to the agent representing the seller. This 6 percent arrangement has been the prevailing form of compensation in agented real estate transactions for decades. There is evidence, however, that the standard 6 percent commission may soon become a thing of the past.

Real estate agents provide a number of services to their clients, but the most indispensable services they provide are those related to the control of information. Most clients can handle negotiations themselves, and advice on inexpensive measures to increase the value of a home—e.g. a fresh coat of paint, reduce clutter—are well known, but people not in the real estate business have generally not had access to sufficient information to determine the optimum price for their homes, nor have they been able to access the information networks used by brokers to advertise the availability of a home to the widest audiences. The most significant of these is the MLS network; only a licensed agent can list a home for sale on the MLS network.

The transformation of information transfer through the Internet, however, is loosening the control that agents have over real estate information. Consumers can quickly find on the Internet, for example, the offering price and actual sales prices of most homes in their region for the last several years, and in most regions they can receive free access to essentially the same real estate listings that agents use when helping clients find homes. The ease of listing homes on the Internet, moreover, is making the process of selling a home far easier than it was in the past. With a digital camera and access to the MLS listing site, a seller’s agent can have a home listed to a wide audience in under an hour’s time.

The consequences of the simplification of real estate information transfer are that a large number of consumers are questioning whether agents truly deserve a 6 percent commission. Increasingly, agents are willing to accept a commission of 5 or 4.5 percent, and some are willing to buy or sell homes for a flat fee. A number of Internet services have sprung up that allow homeowners to list their homes on MLS for less than $1,000, a fraction of the price they would pay for a commission to an agent.    1 
 1. Which of the following is mentioned in the passage as a simple way to increase the resale value of a home?

A. Replacing major appliances
B. Reducing clutter
C. Cleaning carpets
D. Keeping pets outside
E. Removing personal photos

2 
 2. Which of the following statements best captures the main idea of the passage?

A. Only a licensed real estate agent can list homes for sale on the most widely used real estate networks.
B. The control of information is the most valuable service that a real estate agent can provide to a client.
C. It is less expensive to sell a home through the Internet than it is to sell it with the assistance of an agent.
D. In the future the MLS network will no longer be the primary means of distributing information about the sale of a home. 
E. A transformation of real estate information transfer is challenging the standard of a 6 percent commission for real estate transactions.

3 
 3. If the implications suggested by the passage are correct, and if the average number and value of homes sold over the next five years remain approximately the same as in 2011, which of the following can be properly inferred about the real estate business in five years?

A. The total commissions earned by real estate agents and brokers will surpass $100 billion.
B. All agents who represent real estate transactions will be paid with a flatfee.
C. The total commissions earned by real estate agents and brokers will be less than $100 billion.
D. The Internet will no longer be an important means of deriving information about the real estate market.
E. Real estate agents will represent parties in approximately 75 percent of all residential and commercial real estate transactions.

4 
 4. Under which of the following conditions would the trend in real estate commissions mentioned in the passage be most likely to represent a positive development from the perspective of real estate agents?

A. The reduction in costs of real estate transactions encourages a significantly higher percentage of the population to buy or sell property each year than generally did so in the past.
B. The simplification of the process of determining the optimum price for a home means that fewer sellers rely exclusively on real estate agents to determine the listing price for their homes.
C. The reduction in barriers to listing a home for sale means that both agents and home-owners can advertise that a home is for sale in less than an hour’s time.
D. A reduction in the interest rates for home mortgages encourages consumers to purchase more expensive homes and to refinance their existing home mortgages.
E. Advances in home-building technology means that homes today are, on average, more durable and comfortable than homes built in past decades.

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 Passage # 06  |  Date: 03 March 2023 
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Oppenheimer1945 · Answer

1. Which of the following is mentioned in the passage as a simple way to increase the resale value of a home?

A. Replacing major appliances
 B. Reducing clutter 
C. Cleaning carpets
D. Keeping pets outside
E. Removing personal photos

Most clients can handle negotiations themselves, and advice on inexpensive measures to increase the value of a home—e.g. a fresh coat of paint, reduce clutter

2. Which of the following statements best captures the main idea of the passage?

A. Only a licensed real estate agent can list homes for sale on the most widely used real estate networks.
 B. The control of information is the most valuable service that a real estate agent can provide to a client. 
C. It is less expensive to sell a home through the Internet than it is to sell it with the assistance of an agent.
D. In the future the MLS network will no longer be the primary means of distributing information about the sale of a home.
E. A transformation of real estate information transfer is challenging the standard of a 6 percent commission for real estate transactions.(just the essence of the last para) 
 The whole passage revolves around control of info and its impact 
The transformation of information transfer through the Internet, however, is loosening the control that agents have over real estate
("There is evidence, however, that the standard 6 percent commission may soon become a thing of the past."
Real estate agents provide a number of services to their clients, but the most indispensable services they provide are those related to the control of information.
The transformation of information transfer through the Internet, however, is loosening the control that agents have over real estate information
 
3. If the implications suggested by the passage are correct, and if the average number and value of homes sold over the next five years remain approximately the same as in 2011, which of the following can be properly inferred about the real estate business in five years?

A. The total commissions earned by real estate agents and brokers will surpass $100 billion.(in 2011, with 6% commision, Total comm is 100B $. so in 5 yrs with 4.5%-5% commision rate, total comm should surpass 100B $)
 
B. All agents who represent real estate transactions will be paid with a flatfee.
(All is too extreme, 
A number of Internet services have sprung up that allow homeowners to list their homes on MLS for less than $1,000,)

C. The total commissions earned by real estate agents and brokers will be less than $100 billion.(Not true. see explanation for option A)
D. The Internet will no longer be an important means of deriving information about the real estate market.
(The ease of listing homes on the Internet, moreover, is making the process of selling a home far easier than it was in the past.)
E. Real estate agents will represent parties in approximately 75 percent of all residential and commercial real estate transactions.(out os scope).

4. Under which of the following conditions would the trend in real estate commissions mentioned in the passage be most likely to represent a positive development from the perspective of real estate agents?

A. The reduction in costs of real estate transactions encourages a significantly higher percentage of the population to buy or sell property each year than generally did so in the past.
B. The simplification of the process of determining the optimum price for a home means that fewer sellers rely exclusively on real estate agents to determine the listing price for their homes.
 C. The reduction in barriers to listing a home for sale means that both agents and home-owners can advertise that a home is for sale in less than an hour’s time. 
D. A reduction in the interest rates for home mortgages encourages consumers to purchase more expensive homes and to refinance their existing home mortgages.
E. Advances in home-building technology means that homes today are, on average, more durable and comfortable than homes built in past decades.

With a digital camera and access to the MLS listing site, a seller’s agent can have a home listed to a wide audience in under an hour’s time.

$!vakumar.m · Answer

1. Which of the following is mentioned in the passage as a simple way to increase the resale value of a home? 
Most clients are generally aware of simple ways to increase the resale value of a home by applying a fresh coat of paint and reduce clutter. 
  A. Replacing major appliances  - not mentioned 
  B. Reducing clutter  
  C. Cleaning carpets
D. Keeping pets outside
E. Removing personal photos

2. Which of the following statements best captures the main idea of the passage? 
The passage begins with the standard 6% rate charged by the real estate agents as commission and suggests that there is evidence for this standard rate to become a thing of the past. Then in second and third paragraph it highlights how the transformation of information transfer through the Internet is affecting the control of information once enjoyed by the real estate agents and is making the process of selling a home far easier than it was in the past. Consequently, the agents are willing to accept a commission of 5 or 4.5 percent, and some are willing to buy or sell homes for a flat fee. Therefore, the main idea of the passage is to demonstrate that the transformation of real estate information transfer is challenging the standard of a 6 percent commission for real estate transactions. 
  A. Only a licensed real estate agent can list homes for sale on the most widely used real estate networks.  
The author mentions this to highlight that the MLS network was accessible only by the licensed agents to advertise the availability of a home to the widest audiences. But it is certainly not the main idea of the passage.
  B. The control of information is the most valuable service that a real estate agent can provide to a client.  
The author mentions this to amplify that the control of real estate information by the agents was the most critical service out of all the services provided by the agents. The agents had information about the optimum price of homes in a locality and had access to MLS network through which they advertised the availability of a home to the widest audiences. This option best serves as a support to justify the 6% commission charged by the agents. But it is not the main idea of the passage.
  C. It is less expensive to sell a home through the Internet than it is to sell it with the assistance of an agent.  
This is true as a result of the proliferation of the changes in the mechanism of real estate information transfer. But it is certainly not the main idea of the passage.
  D. In the future the MLS network will no longer be the primary means of distributing information about the sale of a home.  
This option is incorrect because while the passage highlights the impact of internet on the availability of real estate information to the clients and the loosening of control of information by the agents, the passage does not suggest that this option is the main idea. 
  E. A transformation of real estate information transfer is challenging the standard of a 6 percent commission for real estate transactions.  
As explained above.

3. If the implications suggested by the passage are correct, and if the average number and value of homes sold over the next five years remain approximately the same as in 2011, which of the following can be properly inferred about the real estate business in five years? 
The implication suggested by the passage is that the 6% commission charged by agents will be lowered in future. 
Since, the average number and value of home sold remains the same (as in 2011) over the next five years, the total commission earned by real estate agents will reduce.
 
  A. The total commissions earned by real estate agents and brokers will surpass $100 billion.   
Enough evidence is given in the passage that the agents are willing to accept lower rates or a flat fee. Hence, this option is not correct.

B. All agents  who represent real estate transactions will be paid with a flatfee.  
The passage suggests that the agents are willing to accept a flat fee or reduced commission rate. So saying that all agents will be paid a flatfee is incorrect.

C. The total commissions earned by real estate agents and brokers will be less than $100 billion.  
True, as explained above.

D. The Internet will no longer be an important means of deriving information about the real estate market.  
The passage suggests the opposite.

E. Real estate agents will represent parties in approximately 75 percent of all residential and commercial real estate transactions.  
Not enough evidence is given to support the figure of 75 %. It could be 50% or less.

4. Under which of the following conditions would the trend in real estate commissions mentioned in the passage be most likely to represent a positive development from the perspective of real estate agents? 
The passage suggests that the 6% commission charged by agents will be lowered in future which implies that the agents commission will reduce. However, we are asked the conditions that can be positive for the real estate agents. With this trend, positive conditions in favor of real estate agents can happen if the number of houses for sale increases and the value of house goes up than in the past.
  A. The reduction in costs of real estate transactions encourages a significantly higher percentage of the population to buy or sell property each year than generally did so in the past.  
As explained above, this option suggests a positive development in favor the agents as it will allow them to earn more with increase in number of transactions.

B. The simplification of the process of determining the optimum price for a home means that  fewer sellers rely  exclusively on real estate agents to determine the listing price for their homes.  
Determining the optimum price of a home is one of the important service provided by real estate agents to their clients. If fewer sellers rely on agents for the same, then it is negative development for the agents.

C. The reduction in barriers to listing a home for sale means that  both agents and home-owners  can advertise that a home is for sale in less than an hour’s time.  
This option explains the ease of listing home for sale which is applicable to both agents and home-owners but doesn't explain how the reduction in commission as indicated in the passage will benefit the agents. We have a better option in A.

D. A reduction in the interest rates for home mortgages encourages consumers to purchase more expensive homes and to refinance their existing home mortgages.  
It doesn't explain if the number of transactions will increase or not. So we can't determine if this condition will benefit the agents.

E. Advances in home-building technology means that homes today are, on average, more durable and comfortable than homes built in past decades.  
We can't determine how this option will affect the number of transactions/sale of house. Incorrect.

Catman · Answer

1. Which of the following is mentioned in the passage as a simple way to increase the resale value of a home?

A. Replacing major appliances  Incorrect not mentioned in the passage.

B. Reducing clutter  Correctly mentioned in the passage.Refer to the line "Most clients can handle negotiations themselves, and advice on inexpensive measures to increase the value of a home—e.g. a fresh coat of paint, reduce clutter—are well known," Fresh coat of paints and reduce clutter are two ways mentioned to increase the resale value of a home.

C. Cleaning carpets ~  Incorrect not mentioned in the passage.

D. Keeping pets outside  Incorrect not mentioned in the passage.

E. Removing personal photos  Incorrect not mentioned in the passage.

2. Which of the following statements best captures the main idea of the passage?

A. Only a licensed real estate agent can list homes for sale on the most widely used real estate networks.  ~ Incorrect refer to the line "A number of Internet services have sprung up that allow homeowners to list their homes on MLS for less than $1,000, a fraction of the price they would pay for a commission to an agent." Now homeowners can also list their home for sale, without agent help.

B. The control of information is the most valuable service that a real estate agent can provide to a client.  ~ Incorrect , refer to the line "The transformation of information transfer through the Internet, however, is loosening the control that agents have over real estate information." Although it was the most valuable service, but with internet agents are losing on this service.

C. It is less expensive to sell a home through the Internet than it is to sell it with the assistance of an agent.  ~ Although this is correct, but we cannot say with certainty that it is less expensive to sell a home through the internet. may be agent are willing to charge a flat fee that is equivalent to the expenses borne by sellers during online transaction.

D. In the future the MLS network will no longer be the primary means of distributing information about the sale of a home.  ~ Incorrect, refer to the line"A number of Internet services have sprung up that allow homeowners to list their homes on MLS for less than $1,000, a fraction of the price they would pay for a commission to an agent." If this is true than most owner will be using MLS network to buy and sell the property without opting through the real agent route.

E. A transformation of real estate information transfer is challenging the standard of a 6 percent commission for real estate transactions.  ~ Correct refer to the line "The consequences of the simplification of real estate information transfer are that a large number of consumers are questioning whether agents truly deserve a 6 percent commission" . Author of the passage wants to question the idea that real estate agent losing the control of information to internet now will not able to justify the standard of a 6% commission for real estate transaction. Many agents are realizing this and are willing to accept a commission of 5 or 4.5 percent, and some are willing to buy or sell homes for a flat fee.

3. If the implications suggested by the passage are correct, and if the average number and value of homes sold over the next five years remain approximately the same as in 2011, which of the following can be properly inferred about the real estate business in five years?

A. The total commissions earned by real estate agents and brokers will surpass $100 billion.  ~Incorrect In the year 2011 real estate agents and brokers received more than $100 billion in commissions on sales of residential and commercial property. This $100mn was received on the charges of flat 6% commission, but the commission percentage of agents is reducing . Refer to the line "There is evidence, however, that the standard 6 percent commission may soon become a thing of the past." If the total value of sales will be approximately same in 2011 than agent will be earning less than $100mn commission.

B. All agents who represent real estate transactions will be paid with a flatfee.  ~Incorrect Refer to the line "Increasingly, agents are willing to accept a commission of 5 or 4.5 percent, and some are willing to buy or sell homes for a flat fee". We cannot say with certainty that all the agents will be charging a flat fee for the deal.

C. The total commissions earned by real estate agents and brokers will be less than $100 billion.  Correct. In the year 2011 real estate agents and brokers received more than $100 billion in commissions on sales of residential and commercial property. This $100mn was received on the charges of flat 6% commission, but the commission percentage of agents is reducing . Refer to the line "There is evidence, however, that the standard 6 percent commission may soon become a thing of the past." If the total value of sales will be approximately same in 2011 than agent will be earning less than $100mn commission.

D. The Internet will no longer be an important means of deriving information about the real estate market. ~ Incorrect Refer to the line "The ease of listing homes on the Internet, moreover, is making the process of selling a home far easier than it was in the past" also it is mentioned that The transformation of information transfer through the Internet, however, is loosening the control that agents have over real estate information. So in Future the internet will be an important means of deriving information about the real estate.

E. Real estate agents will represent parties in approximately 75 percent of all residential and commercial real estate transactions.  ~ Incorrect Refer the line "The ease of listing homes on the Internet, moreover, is making the process of selling a home far easier than it was in the past." A number of internet services sprung up that will allow homeowners to sell their home at a much lesser cost than through agent. So there is a possibility that real estate agent will not represent parties in majority of cases (approximately 75%).

4. Under which of the following conditions would the trend in real estate commissions mentioned in the passage be most likely to represent a positive development from the perspective of real estate agents?

A. The reduction in costs of real estate transactions encourages a significantly higher percentage of the population to buy or sell property each year than generally did so in the past.  ~ Correct if there is higher number of buy/sell property transaction occurring in a year, than overall increase in number of property deals will help both the internet and the real estate agent positively. People may prefer both or either modes to get the deals faster. This will be a positive development from real estate agent prescriptive as more deals more chances to earn commission income.

B. The simplification of the process of determining the optimum price for a home means that fewer sellers rely exclusively on real estate agents to determine the listing price for their homes.  ~ Incorrect if fewer seller will rely exclusively on real estate agent that means their will be less sale and lesser commission earned.

C. The reduction in barriers to listing a home for sale means that both agents and home-owners can advertise that a home is for sale in less than an hour’s time.  ~ Incorrect if this is true than it will mean agent will lose their edge to home owners. Home owners will now prefer to advertise their home by themself.

D. A reduction in the interest rates for home mortgages encourages consumers to purchase more expensive homes and to refinance their existing home mortgages.  ~ Incorrect If these expensive home purchases are taking through internet than real estate agents will be missing out on this opportunities. It cannot be confirm that these purchases will surely be happening with the help of a real estate agent.

E. Advances in home-building technology means that homes today are, on average, more durable and comfortable than homes built in past decades  ~ Incorrect Durable and comfortable homes will have no impact on the sales of the house and therefore this will not impact the commission earned by the real estate agent .

pintukr · Answer

1. Which of the following is mentioned in the passage as a simple way to increase the resale value of a home?

A. Replacing major appliances
 not listed in paragraph 2

B. Reducing clutter
  mentioned in 6th line of paragraph..CORRECT answer

C. Cleaning carpets
 not listed in paragraph 2

D. Keeping pets outside
 not listed in paragraph 2

E. Removing personal photos
 not listed in paragraph 2

2. Which of the following statements best captures the main idea of the passage?

A. Only a licensed real estate agent can list homes for sale on the most widely used real estate networks.
 both the agent and the consumer can list homes for sale

B. The control of information is the most valuable service that a real estate agent can provide to a client.
 usage of 'most' is not appropriate; also, the main idea the 6 percent commission to agents will not be possible in futuristic scenario

C. It is less expensive to sell a home through the Internet than it is to sell it with the assistance of an agent.
 comparison of cost factor is not the main purpose of the passage

D. In the future the MLS network will no longer be the primary means of distributing information about the sale of a home.
 just a fact presented in paragraph 3-- not the main purpose of the passage

E. A transformation of real estate information transfer is challenging the standard of a 6 percent commission for real estate transactions.
  while highlighting the facilities through MLS network on internet, the author is highlighting that the 6 percent commission to agents will not be possible in futuristic scenario..CORRECT answer

3. If the implications suggested by the passage are correct, and if the average number and value of homes sold over the next five years remain approximately the same as in 2011, which of the following can be properly inferred about the real estate business in five years?

A. The total commissions earned by real estate agents and brokers will surpass $100 billion.
 contrary to the inference drawn through contents of the passage

B. All agents who represent real estate transactions will be paid with a flat fee.
 this is a prediction; not a concrete inference-- may or may not be true

C. The total commissions earned by real estate agents and brokers will be less than $100 billion.
  In line with the inference drawn through contents of the passage..CORRECT answer

D. The Internet will no longer be an important means of deriving information about the real estate market.
 contrary to the ideas presented in paragraph 3

E. Real estate agents will represent parties in approximately 75 percent of all residential and commercial real estate transactions.
 No such mention in the passage..Irrelevant answer

4. Under which of the following conditions would the trend in real estate commissions mentioned in the passage be most likely to represent a positive development from the perspective of real estate agents?

A. The reduction in costs of real estate transactions encourages a significantly higher percentage of the population to buy or sell property each year than generally did so in the past.
  If more number of real estate transactions, more commission for real estate agents-- hence, a positive development..CORRECT answer

B. The simplification of the process of determining the optimum price for a home means that fewer sellers rely exclusively on real estate agents to determine the listing price for their homes.
 if fewer sellers rely on agents-- it's a negative development

C. The reduction in barriers to listing a home for sale means that both agents and home-owners can advertise that a home is for sale in less than an hour’s time.
 Home owners will directly advertise; no need to approach the real estate agents -- it's a negative development

D. A reduction in the interest rates for home mortgages encourages consumers to purchase more expensive homes and to refinance their existing home mortgages.
 'Out of scope' stimulus; no impact on real estate agents' commissions

E. Advances in home-building technology means that homes today are, on average, more durable and comfortable than homes built in past decades.
 Irrelevant; durability of homes will not impact the commissions of real estate agents

B, E, C, A are the answers to Q. 1,2,3,4

Suraj0184 · Answer

1. Which of the following is mentioned in the passage as a simple way to increase the resale value of a home?

A. Replacing major appliances 
2nd paragraph doesn't include this parameter

B. Reducing clutter 
 It has been written clearly in line 4 of 2nd paragraph

C. Cleaning carpets 
2nd paragraph doesn't include this parameter

D. Keeping pets outside 
2nd paragraph doesn't include this parameter

E. Removing personal photos 
2nd paragraph doesn't include this parameter

2. Which of the following statements best captures the main idea of the passage?

A. Only a licensed real estate agent can list homes for sale on the most widely used real estate networks. 
main idea is envisaged reduction in commissions for the real estate agents

B. The control of information is the most valuable service that a real estate agent can provide to a client. 
control of information has been used to supplement the envisaged reduction in commissions for the real estate agents

C. It is less expensive to sell a home through the Internet than it is to sell it with the assistance of an agent. 
main idea is envisaged reduction in commissions for the real estate agents

D. In the future the MLS network will no longer be the primary means of distributing information about the sale of a home. 
MLS network has been highlighted to supplement the overall idea that there will be a significant reduction in commissions for the real estate agents

E. A transformation of real estate information transfer is challenging the standard of a 6 percent commission for real estate transactions. 
 availability of MLS network and ease of posting ads clearly poses a challenge to the existing norm of 6 percent commission for real estate transactions

3. If the implications suggested by the passage are correct, and if the average number and value of homes sold over the next five years remain approximately the same as in 2011, which of the following can be properly inferred about the real estate business in five years?

A. The total commissions earned by real estate agents and brokers will surpass $100 billion. 
such an inference can't be drawn

B. All agents who represent real estate transactions will be paid with a flat fee. 
can't be inferred with certainty

C. The total commissions earned by real estate agents and brokers will be less than $100 billion. 
 Reduction of commissions vis-a-vis existing $100 billion (as commissions) can be easily deduced if we consider the ease of posting ads on MLS network by sellers themselves

D. The Internet will no longer be an important means of deriving information about the real estate market. 
in fact, opposite to this is true

E. Real estate agents will represent parties in approximately 75 percent of all residential and commercial real estate transactions. 
such fixed percentage can't be inferred

4. Under which of the following conditions would the trend in real estate commissions mentioned in the passage be most likely to represent a positive development from the perspective of real estate agents?

A. The reduction in costs of real estate transactions encourages a significantly higher percentage of the population to buy or sell property each year than generally did so in the past. 
 More buy-sell transactions --> more commissions for the agents; indeed a 'positive' for agents

B. The simplification of the process of determining the optimum price for a home means that fewer sellers rely exclusively on real estate agents to determine the listing price for their homes. 
negative development for the agents

C. The reduction in barriers to listing a home for sale means that both agents and home-owners can advertise that a home is for sale in less than an hour’s time. 
supplements negative outlook, if the home-owners can advertise themselves

D. A reduction in the interest rates for home mortgages encourages consumers to purchase more expensive homes and to refinance their existing home mortgages. 
'neutral impact' stimulus

E. Advances in home-building technology means that homes today are, on average, more durable and comfortable than homes built in past decades. 
only an additional fact presented here; this is also a 'neutral impact' stimulus

So, the sequence of correct answers will be BECA

Sajjad1994 · Answer

Hello Everyone!

OAs are revealed!

BECA

Competition mode is off.

Almost everyone did a great job.

Tough competition between you guys  Catman ,  sivakumarm786 , and  pintukr

Suraj0184  you need to putt some effort in writing the explanation.

Good luck on Day 4 questions.

Suraj0184 · Answer

Sajjad1994

Thanks for highlighting the drawbacks in my explanations.

Have now included the explanations for 'incorrect' options as well for all questions in the updated post.

Sajjad1994 · Answer

Explanation

1. Which of the following is mentioned in the passage as a simple way to increase the resale value of a home?

Explanation

The passage states that "advice on inexpensive measures to increase the value of a home—e.g. a fresh coat of paint, reduce clutter—are well known," indicating that reducing clutter is a simple way to increase the resale value of a home. Therefore, the correct answer is B.

Answer: B

Sajjad1994 · Answer

Explanation

2. Which of the following statements best captures the main idea of the passage?

Explanation

The main idea of the passage is that the transformation of real estate information transfer through the Internet is challenging the standard of a 6 percent commission for real estate transactions. The passage discusses how real estate agents have traditionally provided valuable services related to the control of information, but that the ease of access to information through the Internet is making it easier for consumers to sell homes without the assistance of an agent. As a result, agents are willing to accept lower commissions, and some homeowners are listing their homes on MLS for a fraction of the price they would pay for a commission to an agent. Therefore, the correct answer is  (E) .

Answer: E

Sajjad1994 · Answer

Explanation

3. If the implications suggested by the passage are correct, and if the average number and value of homes sold over the next five years remain approximately the same as in 2011, which of the following can be properly inferred about the real estate business in five years?

Explanation

The passage discusses the potential impact of the internet on the real estate business, specifically in relation to the standard 6 percent commission charged by agents in the sale of residential and commercial property. The passage suggests that the control of information by agents is the most important service they provide, but the internet is loosening their control over this information. Consumers can now access information on home prices and listings that was previously only available to licensed agents. As a result, some agents are willing to accept lower commissions, and there are now internet services that allow homeowners to list their homes on the MLS for a fraction of the cost of a commission to an agent.

Based on this information, it can be inferred that the total commissions earned by real estate agents and brokers may be less than $100 billion in five years, as more consumers choose to sell their homes without using traditional agents. Therefore, the correct answer is C.

Option A  is incorrect because there is evidence to suggest that commissions may decrease, not increase, in the future.

Option B  is incorrect because the passage suggests that some agents are willing to accept a flat fee, but not all agents will necessarily do so.

Option D  is incorrect because the passage specifically states that the internet is an important means of deriving information about the real estate market.

Option E  is irrelevant to the information presented in the passage.

Answer: C

Sajjad1994 · Answer

Explanation

4. Under which of the following conditions would the trend in real estate commissions mentioned in the passage be most likely to represent a positive development from the perspective of real estate agents?

Explanation

Option (A)  is correct because it suggests that real estate agents would benefit from a reduction in costs of real estate transactions, as it would encourage a higher percentage of the population to buy or sell property each year. If more people buy or sell property, the overall volume of transactions increases, which can offset a lower commission rate, resulting in higher total commissions for agents. This would be a positive development from the perspective of real estate agents.

Option (B)  is incorrect because it suggests that real estate agents would be negatively impacted by a process that simplifies the determination of the optimum price for a home. If fewer sellers rely exclusively on real estate agents to determine the listing price for their homes, it could lead to a reduction in the need for real estate agents and their services.

Option (C)  is incorrect because it suggests that both agents and homeowners can advertise that a home is for sale in less than an hour's time, which is already possible through the use of the internet. However, this does not necessarily benefit real estate agents in terms of their commissions.

Option (D)  is incorrect because it suggests that a reduction in interest rates for home mortgages encourages consumers to purchase more expensive homes and to refinance their existing home mortgages, which is unrelated to the trend in real estate commissions.

Option (E)  is also incorrect because it suggests that advances in home-building technology mean that homes today are, on average, more durable and comfortable than homes built in past decades, which is unrelated to the trend in real estate commissions.

Answer: A

Pjindal · Answer

for ques. 3 I can totally understand the same that as per the passage the commission might decrease but still in 2011 alone it was more than $100 billion but in the question it is asking for the same in next 5 years that is total commission in 5 years, then can you please explain why A is wrong?

In the year 2011 real estate agents and brokers received more than $10

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In the year 2011 real estate agents and brokers received more than $10

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