Explanation
3. If the implications suggested by the passage are correct, and if the average number and value of homes sold over the next five years remain approximately the same as in 2011, which of the following can be properly inferred about the real estate business in five years?
Explanation
The passage discusses the potential impact of the internet on the real estate business, specifically in relation to the standard 6 percent commission charged by agents in the sale of residential and commercial property. The passage suggests that the control of information by agents is the most important service they provide, but the internet is loosening their control over this information. Consumers can now access information on home prices and listings that was previously only available to licensed agents. As a result, some agents are willing to accept lower commissions, and there are now internet services that allow homeowners to list their homes on the MLS for a fraction of the cost of a commission to an agent.
Based on this information, it can be inferred that the total commissions earned by real estate agents and brokers may be less than $100 billion in five years, as more consumers choose to sell their homes without using traditional agents. Therefore, the correct answer is C.
Option A is incorrect because there is evidence to suggest that commissions may decrease, not increase, in the future.
Option B is incorrect because the passage suggests that some agents are willing to accept a flat fee, but not all agents will necessarily do so.
Option D is incorrect because the passage specifically states that the internet is an important means of deriving information about the real estate market.
Option E is irrelevant to the information presented in the passage.
Answer: C