Humber/Ontario Real Estate Course 2 Exam Practice

An appraiser is assessing a four-bedroom, two-storey home in a specific neighborhood. What would be an ideal comparable property?

1. Should be another four-bedroom, two-storey home, recently sold nearby and physically similar.

2. Will be hard to find if the market is very active in the specific locale.

3. Would be any residential property sold within a two-block radius.

4. Could be any home within the same price range.

5. Needs to have exactly the same number of bedrooms.

6. Should be within a one-mile radius of the target home.

The correct answer is: Should be another four-bedroom, two-storey home, recently sold nearby and physically similar.

An ideal comparable property for appraisal purposes should have similar characteristics to the subject property being assessed. In this case, the subject property is a four-bedroom, two-storey home in a specific neighborhood. Therefore, the best comparable property would also be a four-bedroom, two-storey home that has recently sold nearby and is physically similar to the subject property. This ensures that the comparison is relevant and provides an accurate reflection of the subject property's value based on similar properties in the same market. Options B, C, D, and F are not ideal choices for comparable properties in this scenario. Option B is not a valid reason for not finding a suitable comparable property. Option C is too broad as it includes any residential property within a two-block radius, which may not necessarily be similar to the subject property. Option D suggests any home within the same price range, which could vary significantly in features and may not accurately reflect the subject property's value. Option F mentions a one-mile radius, which is too wide of a range and may not capture the nuances of the specific neighborhood where the subject property is located.