Humber/Ontario Real Estate Course 4 Exam Practice

Broker of Record Hennessey listed three nearly identical homes in a neighborhood. Which statement is correct regarding their listing prices?

1. The homes should have the same listing price due to layout and location.

2. The usefulness might be similar, but price variations can exist due to factors like age and special features.

3. The listing prices should be the same as they are exchangeable due to equal utility.

4. This reinforces that homes in specific neighborhoods have similar prices.

5. Identical homes must have identical listing prices set by the brokerage.

6. Differences in layout would result in different listing prices.

The correct answer is: The usefulness might be similar, but price variations can exist due to factors like age and special features.

The correct choice emphasizes that while the homes in question are nearly identical in terms of layout and location, the listing prices can still vary based on certain distinguishing factors. These factors may include the age of the homes, any unique features that one property may have over the others, or even the seller's individual circumstances, such as motivation to sell or the perceived market value. Understanding that similar properties can have different listing prices is crucial in real estate, as it reflects the market’s response to specific characteristics that can enhance a home's desirability, or other non-physical factors influencing pricing. Factors such as renovations, the condition of the property, and aesthetic appeal often play a significant role in a buyer’s perception of value, impacting listing prices even for homes that might appear identical at first glance. This recognition helps real estate professionals price properties more competitively and accurately, taking into consideration the unique attributes that could attract buyers to each specific home.