H ng.cengage.com . .7 "r T MindTap - Cengage Learning ; Rebecca v '::CENGAGE I MINDTAP Q Search this course My Home Problems: Chapters 21 and 22 X Courses Back to Assignment Attempts Catalog and Study Tools I I Average I 2 Rental Options 1 . Individual Problems 21-1 College Success Tips When real estate agents sell their own, rather than clients', houses, they leave the houses on the market for a longer time (10 days longer on avera e and w'nd u w'th better 'cest CareerSuccessTips 9) l p | pm | Suppose that real estate agents earn a commission equal to 3% of the sale value of each house that they help sell. Suppose a real estate agent has He p an offer on a house of $600,000. The agent can get a 2% hlgher offer with more effort and by leavlng the house on the market for a few more weeks. Give Feedback If the agent sells the house now, she will earn a commission of $ . By keeping the house on the market and expending more effort to sell the house, the agent can earn a commission of $ . Thus, the agent gains s for the extra effort and time of keeping the house on the market. Suppose a real estate agent has an offer on a house that she owns. The agent has a current offer of $600,000, but can get a 2% higher offer with more effort and by leaving the house on the market for a few more weeks. Assume that all of the commission is paid back to the agent, since she will act as the agent for the sale. If the agent waits to sell the house, she gains $ more than selling the house now. Since this amount is V than what she would gain by waiting to sell a house she does not own (as in the rst part of the problem), the agent is v likely to keep a house on the market and expend Grade It Now Save & Continue Continue without saving more effort to sell a house that she owns, as opposed to one that she does not own