An appraiser is adjusting properties using the direct comparison approach. If the comparable has a garage worth $30,000 and the subject does not but has a bay window worth $6,400, what adjustments should be made?

Disable ads (and more) with a premium pass for a one time $4.99 payment

Prepare for the Ontario Real Estate Course 2 Exam with our comprehensive practice tests. Study with flashcards, multiple choice questions, and detailed explanations to ensure you are ready for exam day!

In this scenario, the appraiser is using the direct comparison approach to adjust the comparable property to more accurately reflect the value of the subject property.

The comparable property has a garage worth $30,000, which is a feature that the subject property does not have. Therefore, the appraiser should make a minus adjustment of $30,000 to the comparable property to account for this difference.

Conversely, the subject property has a bay window worth $6,400 that the comparable property does not have. In this case, the appraiser should make a plus adjustment of $6,400 to the comparable property to reflect the value of the bay window.

Therefore, the correct adjustments to be made are one minus adjustment of $30,000 for the garage and one plus adjustment of $6,400 for the bay window, as stated in option B.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy