A. Properties located in a city with more advanced development of agglomeration
economies will carry more risk and therefore suffer a larger price decline during an
economic downturn than comparable properties in a city with less agglomeration.
B. Properties located in a city with more advanced development of agglomeration
economies will carry less risk and therefore suffer a larger price decline during an
economic downturn than comparable properties in a city with less agglomeration.
C. Properties located in a city with more advanced development of agglomeration
economies will carry more risk and therefore suffer a smaller price decline during an
economic downturn than comparable properties in a city with less agglomeration.
D. Properties located in a city with more advanced development of agglomeration
economies will carry less risk and therefore suffer a smaller price decline during an
economic downturn.
Christopher has hired a real estate broker to help facilitate the sale of his home.
Realizing that Christopher is most likely going to realize a loss on his investment due to
the recent decline in housing values in his neighborhood, the broker has agreed to
charge Christopher a lower commission rate as long as Christopher enters into an
exclusive right of sale listing contract. If Christopher ends up selling his house for
$364,583 and takes home $350,000 after paying the real estate broker's commission,
what was the commission rate that the broker ended up charging?
A. 4.0%
B. 4.2%
C. 8.0%
D. 14.6%