Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Provide short answers (in most cases, one or two sentences should suffice.) Respond to your peers. Again assuming that Century 21 agents receive base salaries
Provide short answers (in most cases, one or two sentences should suffice.) Respond to your peers.
Again assuming that Century 21 agents receive base salaries of $12,000 and 50% of the commissions earned, while RE/MAX agents pay a yearly $18,000 and receive 100% of the commissions earned:
- Suppose that, by working an extra 20 hours, the real estate agent can increase the offer price from a potential buyer by $100,000 (which would increase total commissions to the selling agent's firm by about $3,000).
Which agent has stronger incentives to extract a higher offer price, the Century 21 agent or the RE/MAX agent?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started