Which of the following statements is (are) TRUE of selling agents in residential real estate transactions?
A) Because agents are paid on commission, there is no principal-agent problem.
B) Agents have an incentive to sell quickly, without waiting for slightly higher offers.
C) If an agent sells an owner's home for an additional $20,000, the agent stands to gain more than the owner.
D) Owners know more than agents about the state of the real estate market and the value of comparable homes.

Question

Quizplus · Accepted Answer

Agents are typically paid on commission, which gives them an incentive to sell properties quickly to earn their commission, even if it means accepting slightly lower offers, rather than waiting for potentially higher offers.

Which of the Following Statements Is (Are) TRUE of Selling