Find out the commission on the sale price

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You want to sell your house, which you believe is worth $2 million. You contact a real estate agent who predicts that your home will sell for $3 million. You're overjoyed to learn that amount, but when you get the selling contract from the agency, you discover that you'll have to pay the agent a 2.1% commission on the sale price. Other agents you talk to have a lower expected selling price and charges of 1.7% t to 1.9%.

You offer to the first agent that you pay no commission if the property sells for less than $3 million and a higher commission of 3% if it sells for $3 million or more, but she refuses.

Explain how this proposal was developed to combat agency costs and unethical behaviour in the real estate industry.

Reference no: EM133072845

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