Virtual/GenInfo.pdf
Virtual Victorian*
General Information
by Wendi Adair, Gaylen Paulson & Trexler Profitt
2001
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Center
Overview of the Exercise
This exercise involves the sale of a house, agents, and
electronic mail (“email”). The buyer and seller are
physically distant from the property, and have both
engaged a real estate agent to represent their
interests.1 During the negotiation, buyer and seller
exchange offers through their agents to complete the
transaction.
Background on Housing Transactions
Residential housing is the largest component of
personal wealth in the United States, and the most
expensive asset most families will ever buy or sell.
The amount of money involved in the typical
residential real estate transaction is well in excess of
the annual household income of either buyer or seller.
As a result, the transaction is usually leveraged with a
long-term loan, called a mortgage, which obligates
the buyer to pay regular installments at prevailing
rates. Home buyers usually make a down payment,
arrangements, the seller completes any required
repairs, and so forth.
Common Reasons for Using Agents
85% of home transactions involve a professional
agent. Some of the most commonly cited reasons for
enlisting the help of an agent are:
Work and Effort
Selling a home takes work and time. Sellers’ agents
advertise, hold “open houses,” put up signs, and
facilitate tours of the property.3 They may also
coordinate preparatory repairs that make the house
appealing to potential buyers. Buyers’ agents identify
properties the buyer will like, canvass recent sales to
gauge the accuracy of the list price of the properties,
and accompany the buyer to view the properties. In
short, agents do much of the work that makes the
transaction happen, leaving the buyer and seller free
to pursue other more productive uses of their time.
