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.

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

What is a potential impact of having a small, run-down house next to a newly built expensive home?

It can impact the value of the expensive home in a tangible way.
Is a good example of a stigma.
Is best described as a perceived risk in terms of its impact on the value of the more expensive home.
Naturally increases the value of the surrounding area.
Would not impact value of the expensive home in any way.
Would require renovations to remove any value impact.

The correct answer is: It can impact the value of the expensive home in a tangible way.

Having a small, run-down house next to a newly built expensive home can impact the value of the expensive home in a tangible way. This is because the run-down house can detract from the overall aesthetic appeal and desirability of the neighborhood, potentially affecting the perceived value of the expensive home. Buyers may see the presence of a run-down property as a negative factor that could decrease the value of the surrounding properties, including the expensive home. As a result, it is important for real estate professionals to consider the impact of neighboring properties on the value of a home when assessing market value and advising clients. Options B, C, D, E, and F are not the correct answers because they do not accurately reflect the potential impact on the value of the expensive home in a tangible way that is described in the scenario.