Humber/Ontario Real Estate Course 3 Exam Practice

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What is deducted to find the adjusted value when a comparable property has a superior construction quality worth $24,000?

$3,000 for a pool
$4,000 for central air
$2,500 for an extra bath
$1,000 for a shed
$24,000 for superior construction
$27,500 for a double garage

The correct answer is: $24,000 for superior construction

To arrive at the adjusted value of a comparable property, it is essential to consider any differences in characteristics that might affect the property's value. When a comparable property has superior construction quality, the value attributed to that quality must be deducted from the analysis to reach a meaningful comparison. In this case, since the comparable property is assessed to have superior construction quality worth $24,000, deducting this amount reflects the difference between the comparable property and the subject property being analyzed. This adjustment allows for a fair evaluation by aligning the features of the two properties as closely as possible. The adjustment takes into account that the subject property does not possess the same level of construction quality. By deducting the entire $24,000, the evaluation retains a focus on properties that are more alike in terms of overall quality, resulting in a more accurate comparison when determining market value or pricing strategy.