Humber/Ontario Real Estate Course 2 Exam Practice

When making time adjustments for properties sold at different times in a steadily improving market, what adjustment should be made?

1. Minus adjustments to account for market changes over time

2. Plus adjustments of 1%, 3%, and 5% respectively to the listing prices

3. An appropriate plus adjustment to each comparable, based on the time since the sale

4. A fixed adjustment of $6,000 for properties sold three months ago

5. A flat rate adjustment for all properties regardless of the sale date

6. No adjustment is necessary if the market is improving

The correct answer is: An appropriate plus adjustment to each comparable, based on the time since the sale

When making time adjustments for properties sold at different times in a steadily improving market, it is important to make a plus adjustment to each comparable, based on the time since the sale. In a market that is steadily improving, properties tend to appreciate over time. Therefore, when comparing properties sold at different times, a plus adjustment is necessary to reflect the market's upward trend in property values. Options A, B, D, and E suggest fixed adjustments or adjustments based on percentages or flat rates, which may not accurately capture the changing market conditions. Option F is incorrect because, even in an improving market, adjustments should still be made to account for the differing sale dates of the comparable properties. Therefore, the most appropriate adjustment to make in this scenario is a plus adjustment to each comparable based on the time since the sale, as mentioned in option C.