Humber/Ontario Real Estate Course 4 Exam Practice

If a comparable property has features not found in a subject property that include an extra bathroom ($2,500), a double car garage ($27,500), and central air conditioning ($4,000), but the subject property has an extra bedroom ($8,500) and superior construction ($24,000), what is the total adjustment needed?

1. The total adjustment to the comparable would be a plus $1,500.

2. Adjustments to the comparable would be required for all items, except the superior construction.

3. The total adjustment to the comparable would be minus $1,500.

4. The extra bedroom and superior construction would be minus adjustments to the comparable.

The correct answer is: The total adjustment to the comparable would be minus $1,500.

In real estate appraisal, adjustments are made to the comparable properties to bring them in line with the subject property, allowing for a more accurate comparison. In this scenario, we have a comparable property with features not found in the subject property, and vice versa. To calculate the total adjustment needed, we need to add up the difference in value for each feature between the comparable property and the subject property. The comparable property has a total of $34,000 worth of additional features not found in the subject property ($2,500 + $27,500 + $4,000), while the subject property has $32,500 worth of additional features not found in the comparable property ($8,500 + $24,000). When we subtract the subject property's additional features from the comparable property's additional features, we get a difference of -$1,500. This indicates that the total adjustment needed to make the comparable property comparable to the subject property would be a minus $1,500, which aligns with the correct answer choice C.