Question: Amy is trying to decide whether or not it would be beneficial to employ the services of a real estate broker in order to facilitate
Amy is trying to decide whether or not it would be beneficial to employ the services of a real estate broker in order to facilitate the sale of her land. She has estimated that the marketing costs and opportunity cost associated with time spent dealing with prospective buyers amounts to $5,000. If Amy were to sell the land on her own for $200,000, but a broker would have been able to negotiate a higher price of $206,350, what commission rate should Amy have been willing to accept from a real estate broker to make her indifferent between selling the land on her own and hiring a real estate broker? Multiple Choice 5.5% Correct 3.1% Incorrect 5.0% 2.4%
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