Humber/Ontario Real Estate Course 2 Exam Practice

Disable ads (and more) with a membership for a one time $2.99 payment

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.

An appraiser is adjusting properties using the direct comparison approach. If the comparable has a garage worth $30,000 and the subject does not but has a bay window worth $6,400, what adjustments should be made?

Two adjustments resulting in a combined minus of $23,600
One minus adjustment of $30,000 and one plus adjustment of $6,400 to the comparable property
A minus adjustment to the subject property for $30,000 and a plus adjustment of $6,400 to the comparable property
A minus adjustment to the comparable property for $28,000 and a plus adjustment of $7,000

The correct answer is: One minus adjustment of $30,000 and one plus adjustment of $6,400 to the comparable property

In this scenario, the appraiser is using the direct comparison approach to adjust the comparable property to more accurately reflect the value of the subject property. The comparable property has a garage worth $30,000, which is a feature that the subject property does not have. Therefore, the appraiser should make a minus adjustment of $30,000 to the comparable property to account for this difference. Conversely, the subject property has a bay window worth $6,400 that the comparable property does not have. In this case, the appraiser should make a plus adjustment of $6,400 to the comparable property to reflect the value of the bay window. Therefore, the correct adjustments to be made are one minus adjustment of $30,000 for the garage and one plus adjustment of $6,400 for the bay window, as stated in option B.