Humber/Ontario Real Estate Course 2 Exam Practice

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Salesperson Jones is adjusting a comparable property that sold for $310,000. The property has an extra half bath (Value: $2,000), a finished basement (Value: $20,000), and upgraded appliances (Value: $5,000). The subject property has a sunroom (Value: $10,000) and a larger lot (Value: $15,000). What is the total adjustment to the comparable?

  1. The total adjustment to the comparable would be minus $2,000.

  2. The adjustments would require a net decrease of $2,000 to the comparable.

  3. The total adjustment to the comparable would be minus $8,000.

  4. The total adjustment to the comparable would be a plus $2,000.

  5. No adjustments are required to the comparable.

  6. The total adjustment to the comparable would be plus $8,000.

The correct answer is: The adjustments would require a net decrease of $2,000 to the comparable.

In this scenario, Salesperson Jones is making adjustments to a comparable property that sold for $310,000. The property has features that require adjustments: an extra half bath ($2,000), a finished basement ($20,000), and upgraded appliances ($5,000). Conversely, the subject property being evaluated has a sunroom ($10,000) and a larger lot ($15,000). To calculate the adjustment to the comparable property, Salesperson Jones needs to consider the differences in features between the comparable property and the subject property. The adjustments are made by adding the value of features present in the subject property not found in the comparable property and subtracting the value of features in the comparable property not present in the subject property. In this case, the adjustments to the comparable property would require a net decrease of $2,000. This means that after accounting for the additional features in each property, the comparable property needs to be adjusted downwards by $2,000 to make an accurate comparison with the subject property. This adjustment reflects the differences in the features of both properties and ensures a fair evaluation of the subject property based on the comparable property.

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