Humber/Ontario Real Estate Course 4 Exam Practice

The listing price:

1. Is the same as the asking price for a particular property

2. Is always different than the market value of that property

3. Can be significantly higher than the market value without affecting saleability

4. Has little influence on positioning in the marketplace

5. Is typically lower to attract multiple offers

6. Should reflect the most recent appraisal

The correct answer is: Is the same as the asking price for a particular property

The listing price refers to the amount of money a seller is willing to accept for their property and is indeed synonymous with the asking price. When a property is listed for sale, the seller sets this price in an attempt to attract potential buyers. It serves as the starting point in negotiations and is critical for marketing the property effectively. Other options suggest various relationships and influences that listing price might have relative to market conditions or saleability. For instance, while it might be possible for a property to be listed at a price higher than its market value, this does not necessarily guarantee its successful sale, as buyers will often base their interest on perceived value rather than just price. Similarly, the idea that the listing price should reflect the most recent appraisal is not a universal requirement; pricing can be influenced by many factors including market trends, competition, and seller motivation, which may not always align with an appraisal value. By understanding that the listing price and asking price are interchangeable, one can better grasp how these terms are utilized in real estate transactions and marketing strategies.