Humber/Ontario Real Estate Course 2 Exam Practice

Which approach is typically used when a buyer must decide among multiple property options?

1. The Comparative Market Analysis approach.

2. The Benjamin Franklin technique.

3. Cost-benefit analysis.

4. SWOT Analysis.

5. The Reverse Mortgage technique.

6. The Property Valuation method.

The correct answer is: The Benjamin Franklin technique.

The Benjamin Franklin technique is typically used when a buyer must decide among multiple property options. This technique involves creating a list of pros and cons for each property option, similar to how Benjamin Franklin is said to have made decisions. By weighing the advantages and disadvantages of each property, the buyer can make a more informed decision based on their preferences, needs, and priorities. The other options are not typically used when a buyer must decide among multiple property options. - The Comparative Market Analysis approach is used by real estate agents to determine the market value of a property by comparing it to similar properties that have recently sold in the area. - Cost-benefit analysis is a financial analysis tool used to evaluate the potential benefits of a decision against its costs. - SWOT Analysis is typically used in business to assess the Strengths, Weaknesses, Opportunities, and Threats related to a specific decision or situation. - The Reverse Mortgage technique is a financial product that allows homeowners to access the equity in their homes. - The Property Valuation method is a general term for the process of determining the value of a property, which can involve various approaches such as the Comparable Sales Approach, Income Approach, or Cost Approach.