Occasionally real estate agencies purchase dilapidated houses that they then put back on the market for very high prices. When a real estate agent is showing potential clients around, they will show clients these overpriced houses first before showing them the true stock. What psychological phenomenon might these real estate agents be trying to exploit when doing this? Contrast effects The power of reciprocal concessions Cognitive dissonance None of the above

Why is it likely that real estate agents keep their own houses on the market longer than they do for other sellers?Group of answer choicesThe dollar value of the commission received when selling other people’s house received is always constantIncentives are stronger when selling the agent’s own houseOther sellers do not appreciate the effort real estate agents put inThe chances of finding a buyer for the agent’s own house is much higher than it is for another seller’s house

What should the real estate agent do that is reflective of their fiduciary duty to their sellers? Present all offers regardless of whether they think they are good or bad Present only the offers that meet the seller’s timeline for moving Present only the offers that meet or exceed the amount the seller wanted to list the home for

What most affects a buyer’s perception of a price

True or False. Being a fiduciary to a client means the agent’s loyalty is primarily to themselves and their real estate business above all else. TrueFalse

Question 8Which of the following provide evidence that investors experience cognitive dissonance?1 pointInvestors buy and sell stocks very rapidlyInvestors choose investments which already have many other investorsInvestors do not remember the negative performance of their investments.Investors hold onto funds that are doing poorly