Humber/Ontario Real Estate Course 2 Exam Practice

How should the three homes listed by Broker Hennessey, which are near each other and have identical layouts, potentially vary in their listing prices?

1. Should have the same listing price due to their identical layouts and location.

2. May have different prices based on age, upkeep, special features, and specific locations.

3. Should have the same prices as they are monetarily exchangeable due to identical utility.

4. Will have similar prices reflecting the underlying market premise of the neighborhood.

The correct answer is: May have different prices based on age, upkeep, special features, and specific locations.

The correct answer is B because although the three homes have identical layouts and are near each other, there are various factors that can influence their listing prices. The age of the properties, the level of upkeep and maintenance, any special features or upgrades, and specific locations within the neighborhood can all impact the value of each property. Therefore, it is reasonable to expect that the listing prices may differ based on these factors, even though the homes share similarities in layout and proximity. Option A is incorrect as listing prices are not solely determined by layout and location; other factors play a significant role. Option C is incorrect as while the homes may offer identical utility, market dynamics and property-specific attributes can lead to variations in listing prices. Option D is incorrect as while the neighborhood's market premise may influence prices to some extent, individual property characteristics also come into play.