Humber/Ontario Real Estate Course 3 Exam Practice

What does a competitive listing price for a home imply?

1. Which is arrived at using a comparative market analysis, is equal to its market value.

2. Is usually established by analyzing all homes that have sold on the same street.

3. Is a major component in establishing a saleable listing.

4. Will increase the risk that the home will be used for comparison purposes, which will assist salespersons selling other comparable homes.

5. Ensures the home will sell above the asking price.

6. Depends exclusively on the current market trends.

The correct answer is: Is a major component in establishing a saleable listing.

A competitive listing price for a home is pivotal in establishing a saleable listing because it directly influences how attractive the home appears to potential buyers. When a home is priced competitively, it is likely to garner interest, leading to more showings and potentially multiple offers. This pricing strategy not only reflects the current market conditions but also considers the unique features of the property, its location, and comparable sales in the area. Establishing a competitive price is essential for attracting buyers who may be comparing several similar properties. If the listing price is set too high, it may deter potential buyers, while a low price might raise suspicions about the condition or value of the home. Therefore, setting a competitive price is a strategic approach that enhances the chances of a successful sale, improving the overall marketability of the property. Other options, while they touch on aspects of pricing, either misstate or simplify the multifaceted nature of determining a competitive listing price. For example, analyzing homes that sold on the same street is one method but does not encompass the broader approach needed for competitive pricing.