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Question: What is the amount of the standard real estate commission charged by brokerage firms in your community? Assume you own a home in which your equity is $25,000, and that you are about to sell for $125,000. If your agent's commission rate is 6 percent, what is the commission rate expressed as a percentage of your equity? How much difference in effort do you suspect a sales agent expends in listing a home in which the owner has a $50,000 equity? What conclusions can be drawn from your analysis? Would a prospective seller be wise to engage the services of a listing agent on an hourly basis? Why or why not?

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Category:- Management Theories
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