Humber/Ontario Real Estate Course 4 Exam Practice

What is essential in setting a competitive listing price for a home?

1. Using a comparative market analysis to determine market value.

2. Analyzing all homes sold on the same street.

3. Being a major factor in creating a saleable listing.

4. Increasing the risk of the home being used for comparison purposes, aiding salespersons with other homes.

5. Setting the price based solely on the homeowner's desired selling price.

6. Considering only the home’s unique features.

The correct answer is: Being a major factor in creating a saleable listing.

While creating a saleable listing is indeed an important aspect of setting a competitive price, the most critical factor is actually utilizing a comparative market analysis (CMA) to determine the home’s market value. This approach takes into account recent sales of comparable properties, current listings, and market trends to arrive at a price that is aligned with what buyers are willing to pay. Using a CMA ensures that the price reflects the true market conditions, helping to attract potential buyers while also helping the seller achieve the best possible price. It provides a data-driven basis for pricing that can make a significant difference in how quickly the home sells and at what price. The other options highlight various considerations but do not capture the fundamental necessity of market analysis. For instance, analyzing homes sold on the same street is part of a CMA, but it doesn’t encompass the broader view needed. Similarly, focusing solely on the homeowner's preferences or unique features of the home may lead to overpricing without a strong market basis. Thus, relying on a comparative market analysis is essential in setting a competitive listing price for a home.