Humber/Ontario Real Estate Course 3 Exam Practice

Which statement about sourcing clients is accurate?

1. Cold calling is the most effective method

2. Personal referrals can significantly enhance business

3. Property open houses are ineffective in modern practice

4. Social media advertising is outdated

5. Street canvassing is illegal in many areas

6. Use of client databases is not recommended

The correct answer is: Personal referrals can significantly enhance business

The statement regarding personal referrals being able to significantly enhance business is accurate because referral-based clients tend to trust the recommendations from people they know, which can lead to quicker, more comfortable transactions. Personal referrals often come with a built-in level of trust and confidence in the agent's capabilities, making it easier for real estate professionals to convert these leads into clients. This method not only tends to create a warmer interaction compared to cold leads but also has the potential to result in repeat business and a broader client base through the referral network established by satisfied clients. Conversely, cold calling can often generate mixed results due to the lack of personal connection, and open houses, while still useful, may not be as central to a modern strategy as networking and digital marketing. Social media remains a powerful tool for reaching potential clients; thus, characterizing it as outdated overlooks its relevance and effectiveness in current marketing strategies. Likewise, while street canvassing may be subject to local regulations, it is not altogether illegal in many areas. Lastly, maintaining and utilizing client databases is actually recommended for tracking interactions and nurturing relationships, contrary to the suggestion in the incorrect statement.