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.

If a comparable property with an elevated deck worth $18,500 needs an upgrade costing $12,500, on what basis would an adjustment be made?

Based on the deck's current value of $18,500.
Based on the original construction cost of $23,700.
Upgrade cost added to current value.
Original cost minus current value.
Total value after upgrade cost.
Based on appraiser's adjusted estimate.

The correct answer is: Based on the deck's current value of $18,500.

In real estate appraisal, adjustments are typically made based on the current value of the feature being compared. In this case, the comparable property has an elevated deck worth $18,500, which is its current value. Therefore, to make an adjustment for the upgrade cost of $12,500, it would be based on the deck's current value of $18,500. This is because the adjustment should reflect the additional value that the upgrade brings to the property in comparison to the comparable property's existing feature value. It is important to consider the current value of the feature to make accurate adjustments in real estate appraisal.