Humber/Ontario Real Estate Course 3 Exam Practice

What is the impact of a significantly overpriced listing on a property's marketability?

1. Enhances chances of multiple offers.

2. Typically shortens the time to sell.

3. Ensures a higher final price.

4. Deters potential buyers and affects marketability.

5. Increases competitive attractiveness.

6. Guarantees higher perceived value.

The correct answer is: Deters potential buyers and affects marketability.

A significantly overpriced listing typically deters potential buyers and negatively affects the property's marketability. When a property is listed at a price that does not reflect its true market value, it can create skepticism among potential buyers who may perceive the listing as unrealistic. This can lead to fewer showings, lower interest levels, and, ultimately, a longer time on the market. Buyers are often well-informed and conduct research on comparable properties, so an overpriced listing can create an impression that the seller is not serious about selling or is unwilling to negotiate. In contrast, other options suggest outcomes that could be favorable to an overpriced listing, such as enhancing competitive attractiveness or guaranteeing higher perceived value, which do not align with typical buyer behavior in real estate markets. Overpricing does not usually lead to multiple offers or a higher final price; instead, it tends to drive buyers away, making it a crucial factor for sellers to consider when pricing their properties.