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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What is a fundamental factor in determining the selling price in a buyer's market?

Amount of competition
Condition of the property
Marketing strategies utilized
Motivation of the seller
Seller’s desired profit margin
Unique features of the property

The correct answer is: Amount of competition

In a buyer's market, where there is an abundance of properties for sale and fewer buyers actively purchasing, the amount of competition plays a significant role in determining the selling price. With numerous properties available, buyers have more options to choose from, leading them to compare and negotiate based on what is available in the market. This high level of competition can put downward pressure on prices as sellers may need to adjust their pricing strategies to remain competitive and attract buyers. Therefore, the amount of competition is a fundamental factor in determining the selling price in a buyer's market. The other options are not the most crucial factor in determining the selling price in a buyer's market. While the condition of the property, marketing strategies, motivation of the seller, seller's desired profit margin, and unique features of the property can all impact the selling price to some extent, they are generally secondary to the influence of the amount of competition in a buyer's market.