Humber/Ontario Real Estate Course 3 Exam Practice

If Seller Martin lists his property much higher than comparable units yet receives several showings, what does this indicate?

1. Buyers are likely to spend more on Martin's unit than other similar properties.

2. Martin's unit might be used for comparison to validate prices of other properties.

3. Overpricing can increase the ease at which properties are sold.

4. It reinforces the idea that higher showings guarantee a quicker sale.

5. Shows that buyers are interested in unique features despite higher prices.

6. Indicates existing market conditions favor high-priced units more actively.

The correct answer is: Martin's unit might be used for comparison to validate prices of other properties.

The choice suggesting that Martin's unit might be used for comparison to validate prices of other properties is correct because it recognizes the role of his listing within the broader market context. When a property is listed at a higher price than similar units, it may attract interest from buyers who are looking to understand the range of pricing options available. Even if buyers do not intend to purchase Martin's overpriced unit, they can use its listing as a reference point to justify or negotiate prices on other properties. This behavior is particularly relevant in real estate markets where price comparison is a common practice amongst buyers and agents. The other options consider different aspects of showings and market behavior, but they do not accurately capture the significance of how Martin’s pricing could influence market perceptions and comparisons for other listings. Thus, the selection underscores the interconnected nature of property listings and pricing strategy within the real estate marketplace.