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You are interested in selling your house and you think it is worth $2 million. You approach Stella, a real estate salesperson who says that
You are interested in selling your house and you think it is worth $2 million. You approach Stella, a real estate salesperson who says that she thinks your house will sell for $3 million. You are excited to hear that amount and when you receive the selling contract from Stella you read that you have to pay a 2.1% commission on the sale price. Other agents you speak with have a lower likely selling price and their commissions are 1.7%-1.9%. Should you accept Stella's proposal? Are there any ethical issues? Can you suggest ways to improve this contract and reduce agency problems?
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