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# The price of a finished home bought through a real estate agent

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The price of a finished home bought through a real estate agent  [#permalink]

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31 Aug 2015, 05:46
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95% (hard)

Question Stats:

48% (02:49) correct 52% (02:36) wrong based on 391 sessions

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The price of a finished home bought through a real estate agent incorporates an abundance of service fees charged by all the companies involved in the creation of that home and by the entrepreneur. To reduce the final cost of a home, some people choose to form purchasing groups which independently handle the process, from buying the property and receiving permits from the authorities to making architectural decisions. Handling the complete process of developing a home is complicated and presents challenges at every stage such as legal complications and construction errors.

The statements above, if true, best support which of the following as a conclusion?

A) Assuming they sell their home for the same price, individual purchasers that buy homes through agents cannot earn as much as those who buy through an independent purchasing group.
B) Most projects handled by independent purchasing groups experience complications that result in loss.
C) Homes bought through agents do not experience legal complications or construction errors during development.
D) If paying the commission awarded to the real estate agent could be avoided, the price of any home would be the same as that bought by independent purchasing groups.
E) The obvious advantage of buying a home by forming a purchasing group will result in an increase in the utilization of this method.

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Re: The price of a finished home bought through a real estate agent  [#permalink]

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31 Aug 2015, 06:58
Harley1980 wrote:
The price of a finished home bought through a real estate agent incorporates an abundance of service fees charged by all the companies involved in the creation of that home and by the entrepreneur. To reduce the final cost of a home, some people choose to form purchasing groups which independently handle the process, from buying the property and receiving permits from the authorities to making architectural decisions. Handling the complete process of developing a home is complicated and presents challenges at every stage such as legal complications and construction errors.

The statements above, if true, best support which of the following as a conclusion?

A) Assuming they sell their home for the same price, individual purchasers that buy homes through agents cannot earn as much as those who buy through an independent purchasing group.
B) Most projects handled by independent purchasing groups experience complications that result in loss.
C) Homes bought through agents do not experience legal complications or construction errors during development.
D) If paying the commission awarded to the real estate agent could be avoided, the price of any home would be the same as that bought by independent purchasing groups.
E) The obvious advantage of buying a home by forming a purchasing group will result in an increase in the utilization of this method.

Couldn't understand what option A is trying to say. anyone willing to explain in detail every option????
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Re: The price of a finished home bought through a real estate agent  [#permalink]

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31 Aug 2015, 08:38
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grr8pe
option a says that if someone is trying to sell a house bought from an agent he will not be able to demand that the same price that he paid since agents charge a lot of service charges ,one might end up getting lesser than the amount he paid on the other hand houses bought from independent houses demand lesser than agents and the one might make the same amount of money that he initailly invested.
Hope i conveyed clearly.
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Re: The price of a finished home bought through a real estate agent  [#permalink]

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31 Aug 2015, 12:59
Why is "C" not a correct option?
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Re: The price of a finished home bought through a real estate agent  [#permalink]

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31 Aug 2015, 13:51
grr8pe wrote:
Harley1980 wrote:
The price of a finished home bought through a real estate agent incorporates an abundance of service fees charged by all the companies involved in the creation of that home and by the entrepreneur. To reduce the final cost of a home, some people choose to form purchasing groups which independently handle the process, from buying the property and receiving permits from the authorities to making architectural decisions. Handling the complete process of developing a home is complicated and presents challenges at every stage such as legal complications and construction errors.

The statements above, if true, best support which of the following as a conclusion?

A) Assuming they sell their home for the same price, individual purchasers that buy homes through agents cannot earn as much as those who buy through an independent purchasing group.
B) Most projects handled by independent purchasing groups experience complications that result in loss.
C) Homes bought through agents do not experience legal complications or construction errors during development.
D) If paying the commission awarded to the real estate agent could be avoided, the price of any home would be the same as that bought by independent purchasing groups.
E) The obvious advantage of buying a home by forming a purchasing group will result in an increase in the utilization of this method.

Couldn't understand what option A is trying to say. anyone willing to explain in detail every option????

Hello grr8pe

The argument says that we have two types of homes:
1) Built by a lot of companies
2) Built by independent purchasing group
The latter group is trying to reduce the final cost.

This is inference question so we should to find answer that will be 100% right in any scenarios.

A) Assuming they sell their home for the same price, individual purchasers that buy homes through agents cannot earn as much as those who buy through an independent purchasing group.
Correct. This answer says that if you we buy home for \$100000 we receive a better home from the independent group because they are trying to reduce costs.

B) Most projects handled by independent purchasing groups experience complications that result in loss.
Incorrect. Both groups experience challenges

C) Homes bought through agents do not experience legal complications or construction errors during development.
Incorrect. Both groups experience challenges

D) If paying the commission awarded to the real estate agent could be avoided, the price of any home would be the same as that bought by independent purchasing groups.
Incorrect. Real estate commission is not only way to reduces cost during building of home.

E) The obvious advantage of buying a home by forming a purchasing group will result in an increase in the utilization of this method.
Incorrect. It is possible but we can not be completely certain in this fact. Maybe it is not so easy to form such group because of some reasons.
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Re: The price of a finished home bought through a real estate agent  [#permalink]

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13 Jun 2017, 03:01
Harley1980 wrote:
The price of a finished home bought through a real estate agent incorporates an abundance of service fees charged by all the companies involved in the creation of that home and by the entrepreneur. To reduce the final cost of a home, some people choose to form purchasing groups which independently handle the process, from buying the property and receiving permits from the authorities to making architectural decisions. Handling the complete process of developing a home is complicated and presents challenges at every stage such as legal complications and construction errors.

The statements above, if true, best support which of the following as a conclusion?

A) Assuming they sell their home for the same price, individual purchasers that buy homes through agents cannot earn as much as those who buy through an independent purchasing group.
B) Most projects handled by independent purchasing groups experience complications that result in loss.
C) Homes bought through agents do not experience legal complications or construction errors during development.
D) If paying the commission awarded to the real estate agent could be avoided, the price of any home would be the same as that bought by independent purchasing groups.
E) The obvious advantage of buying a home by forming a purchasing group will result in an increase in the utilization of this method.

It seems "Handling the complete process of developing a home is complicated and presents challenges at every stage such as legal complications and construction errors." has no impact on the OA. I believe all parts of an argument shall have some sorts of impact(directly/indirectly) on the OA. Am I correct?

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Re: The price of a finished home bought through a real estate agent  [#permalink]

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12 Jul 2017, 08:51
GMATSPARTAN wrote:
Why is "C" not a correct option?

Wrong to say houses brought through agents do not face legal/development issues. The agents charge the fees to take care of these issues.
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Re: The price of a finished home bought through a real estate agent  [#permalink]

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06 Aug 2019, 10:53
what option A is trying to convey is not clear.
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Re: The price of a finished home bought through a real estate agent  [#permalink]

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30 Nov 2019, 09:09
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Harley1980 wrote:
The price of a finished home bought through a real estate agent incorporates an abundance of service fees charged by all the companies involved in the creation of that home and by the entrepreneur. To reduce the final cost of a home, some people choose to form purchasing groups which independently handle the process, from buying the property and receiving permits from the authorities to making architectural decisions. Handling the complete process of developing a home is complicated and presents challenges at every stage such as legal complications and construction errors.

The statements above, if true, best support which of the following as a conclusion?

A) Assuming they sell their home for the same price, individual purchasers that buy homes through agents cannot earn as much as those who buy through an independent purchasing group. - Plausible. Keep. Read again. It seems fine. So we can pick this by POE
B) Most projects handled by independent purchasing groups experience complications that result in loss. - We don't know whether independent purchasing will result in loss
C) Homes bought through agents do not experience legal complications or construction errors during development. - We don't know.
D) If paying the commission awarded to the real estate agent could be avoided, the price of any home would be the same as that bought by independent purchasing groups. Again, we don't know about this. Price will be less Yes. but will it be same? Don't know.
E) The obvious advantage of buying a home by forming a purchasing group will result in an increase in the utilization of this method. Totally Out Of Focus.
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Re: The price of a finished home bought through a real estate agent  [#permalink]

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30 Nov 2019, 15:50
Pankaj1Agarwal wrote:
what option A is trying to convey is not clear.

(A) Assuming they sell their home for the same price, individual purchasers that buy homes through agents cannot earn as much as those who buy through an independent purchasing group.

All it says home owners will earn more money if they they buy home from an independent purchasing group instead of agents.
On other words - If one buys home from an independent purchasing group instead of agents - it would be cheaper.

The price of a finished home bought through a real estate agent incorporates an abundance of service fees charged by all the companies involved in the creation of that home and by the entrepreneur. To reduce the final cost of a home, some people choose to form purchasing groups which independently handle the process, from buying the property and receiving permits from the authorities to making architectural decisions. Handling the complete process of developing a home is complicated and presents challenges at every stage such as legal complications and construction errors.

In Stem - the purpose of making independent purchasing group is to reduce cost.
Re: The price of a finished home bought through a real estate agent   [#permalink] 30 Nov 2019, 15:50
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