Humber/Ontario Real Estate Course 2 Exam Practice

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Prepare for the Ontario Real Estate Exam with our comprehensive Humber Course 2 Exam Practice quiz. Engage with multiple choice questions and detailed explanations, designed to help you excel.

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According to the principle of progression, how do larger homes impact the value of a smaller home on the same street?

Highest and best use
Conformity
Progression
Regression
Supply and demand
Substitution

The correct answer is: Progression

According to the principle of progression, larger homes can positively impact the value of a smaller home on the same street. This occurs because the presence of larger, more valuable homes in the vicinity can increase the perceived value of the smaller home, driven by the assumption that the smaller home benefits from being in a high-value neighborhood. Therefore, the correct answer is "Progression." The other options are not the most suitable choices for the scenario described in the question: - "Highest and best use" refers to the most financially advantageous use of a property, regardless of the existing use. - "Conformity" relates to properties maintaining their value by conforming to surrounding properties. - "Regression" suggests that the value of a property might decrease because of surrounding lower-value properties. - "Supply and demand" pertains to how market forces dictate property values. - "Substitution" involves comparing the cost of acquiring a property with the cost of a similar or equivalent property.