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) Because agents are paid on commission, they 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

B) Selling agents are motivated to close sales quickly due to their commission-based compensation. This can sometimes lead to them encouraging sellers to accept lower offers to ensure a sale, rather than waiting for potentially higher offers that might take longer to materialize.

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