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Summer: We should expect the current amount of compensation

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Summer: We should expect the current amount of compensation [#permalink]

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New post 21 Apr 2014, 00:01
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Difficulty:

  45% (medium)

Question Stats:

66% (01:33) correct 34% (01:32) wrong based on 391 sessions

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Summer: We should expect the current amount of compensation for real estate agents to be the traditional 4% commission for selling a client’s home, since studies show that commissions below 4% result in unmotivated agents and low closing prices.

Autumn: That traditional 4% commission was established before the crash of the housing market. Now that homes are harder to sell, commissions in general are harder to come by, so a homeowner need not pay as hefty a commission to motivate a potential real estate agent.

The exchange above supports the claim that the two parties disagree about

A. whether the definition of ‘traditional’ has changed in the current housing market.

B. whether the current real estate market has recovered from the recent crash.

C. whether it is a good idea to raise the traditional 4% commission.

D. whether a real estate agent is inherently motivated to complete a sale.

E. what level of commission is appropriate under current economic conditions.

[Reveal] Spoiler:
In this both speak of Motivation levels
only Autumn speaks of economic condition, still E is correct. Why?
[Reveal] Spoiler: OA

Last edited by broall on 28 May 2017, 05:47, edited 2 times in total.
Edited the title of the question
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Re: Summer: We should expect the current amount of compensation [#permalink]

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New post 21 Apr 2014, 06:39
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hapless12 wrote:
Summer: We should expect the current amount of compensation for real estate agents to be the traditional 4% commission for selling a client’s home, since studies show that commissions below 4% result in unmotivated agents and low closing prices.

Autumn: That traditional 4% commission was established before the crash of the housing market. Now that homes are harder to sell, commissions in general are harder to come by, so a homeowner need not pay as hefty a commission to motivate a potential real estate agent.

The exchange above supports the claim that the two parties disagree about

whether the definition of ‘traditional’ has changed in the current housing market.

whether the current real estate market has recovered from the recent crash.

whether it is a good idea to raise the traditional 4% commission.

whether a real estate agent is inherently motivated to complete a sale.

what level of commission is appropriate under current economic conditions
.

In this both speak of Motivation levels
only Autumn speaks of economic condition, still E is correct. Why?


I think it should be E
Here is how i got it (it may be wrong )

A.whether the definition of ‘traditional’ has changed in the current housing market. out of context as they are not arguing after the definition

B.whether the current real estate market has recovered from the recent crash. Autumn just mentioned that the 4% commission was before the market crashed , they clearly are not talking about the recovery of the market


C.whether it is a good idea to raise the traditional 4% commission. read carefully,summer never said anything about INCREASING the rate to 4%


D.whether a real estate agent is inherently motivated to complete a sale. if you see carefully autumn do not emphasis more on the motivating 4% commission, rather she is trying to explain summer why it is not advisable to pay 4% commission , so i think D will be eliminated

E.what level of commission is appropriate under current economic conditions. correct, as summer suggests paying the agents 4% commission ,while autumn suggests why it would not be ideal paying such high commission, keeping market condition in mind

it is my 1st time,so if the explanation is not proper, please excuse me
if it helped please press kudos :)
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Re: Summer: We should expect the current amount of compensation [#permalink]

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New post 24 Jul 2015, 11:43
Hello from the GMAT Club VerbalBot!

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Re: Summer: We should expect the current amount of compensation [#permalink]

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New post 25 Jul 2015, 03:20
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The answer to this question is E. I have a request- Please do not write the answer just below the question... It fails the whole purpose :oops:
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Re: Summer: We should expect the current amount of compensation [#permalink]

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New post 02 Aug 2017, 15:39
Hello from the GMAT Club VerbalBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

Want to see all other topics I dig out? Follow me (click follow button on profile). You will receive a summary of all topics I bump in your profile area as well as via email.
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Re: Summer: We should expect the current amount of compensation [#permalink]

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New post 05 Aug 2017, 22:13
hapless12 wrote:
Summer: We should expect the current amount of compensation for real estate agents to be the traditional 4% commission for selling a client’s home, since studies show that commissions below 4% result in unmotivated agents and low closing prices.

Autumn: That traditional 4% commission was established before the crash of the housing market. Now that homes are harder to sell, commissions in general are harder to come by, so a homeowner need not pay as hefty a commission to motivate a potential real estate agent.

The exchange above supports the claim that the two parties disagree about

A. whether the definition of ‘traditional’ has changed in the current housing market.

B. whether the current real estate market has recovered from the recent crash.

C. whether it is a good idea to raise the traditional 4% commission.

D. whether a real estate agent is inherently motivated to complete a sale.

E. what level of commission is appropriate under current economic conditions.

[Reveal] Spoiler:
In this both speak of Motivation levels
only Autumn speaks of economic condition, still E is correct. Why?


Big big trap in C .Summer is not asking about a raise above 4%
E is the ans
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Re: Summer: We should expect the current amount of compensation   [#permalink] 05 Aug 2017, 22:13
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