Humber/Ontario Real Estate Course 4 Exam Practice

Which technique helps homebuyers decide by weighing pros and cons from their perspective?

1. The Benjamin Franklin technique.

2. The Comparative Market Analysis technique.

3. The Value Proposition technique.

4. The Financial Ratio Analysis technique.

5. The Property Investment Calculator technique.

6. The Cost-Benefit Analysis technique.

The correct answer is: The Benjamin Franklin technique.

The Benjamin Franklin technique is a method used to assist individuals in decision-making by encouraging them to list the pros and cons of a particular choice. Named after the founding father Benjamin Franklin, this approach emphasizes a thorough examination of the positives and negatives related to a decision, thereby helping homebuyers clarify their preferences based on personal values and priorities. By writing down the advantages and disadvantages, buyers can visualize their thoughts and feelings about a property, making it easier to come to a conclusion that aligns with their needs. This technique is particularly effective because it personalizes the decision-making process, allowing homebuyers to focus on what matters most to them rather than relying solely on external factors or generalized market analyses. Other methods listed, such as Comparative Market Analysis or Financial Ratio Analysis, provide valuable data but do not specifically facilitate personal reflection on the pros and cons from the homebuyer’s viewpoint.