Jeremy Jorgensen of Tucson, Arizona, is concerned about the costs involved in se

Question

Jeremy Jorgensen of Tucson, Arizona, is concerned about the costs involved in selling his home, so he has
decided to sell his home himself rather than pay a broker to do it.

(a) How would you advise Jeremy if he asked you
whether he should sell the house himself or list with
a broker? Explain your answer.

(b) Would Jeremy really save money by selling his home
himself if he considers his time as part of his costs?
Why or why not?

(c) Can you suggest any ways that Jeremy might reduce
his selling costs without doing the selling himself?
Explain.

Explanation / Answer

Jeremy should list the house for sale to the broker as he can give the customers who can offer a good value for the house and deal in a better way can be done for the house without any fraud been committed.

The time that jeremy would invest on searching a good customer who offers the good value can be invested elsewhere where he can earn as disinvesting time from some other activity to sell the house is considered as the opportunity cost of jeremy and will also form as a part of cost of selling the house

There are also some other benefits of selling the house through the broker and are as follows;

1) The broker has the knowledge about all legal proceedings required in selling the house

2)The also help in mitigate numerous problems , challenges and stress that could prevent you from realising the outcome you seek.

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