Humber/Ontario Real Estate Course 4 Exam Practice

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If a property sold three months ago for $300,000 during a market increasing at 1% per month, what adjustment should be made?

  1. Minus adjustment of 3%

  2. Plus adjustment of $3,000

  3. Plus adjustment of $6,000

  4. No adjustment needed

  5. Minus adjustment of $3,000

  6. Plus adjustment of 1%

The correct answer is: Plus adjustment of $6,000

If a property was sold three months ago for $300,000 in a market that is increasing at 1% per month, we need to calculate the adjustment based on the incremental increase in the market value. Since the market is rising 1% per month for three months, the total increase is 3%. Therefore, the adjustment that should be made to the previous selling price of $300,000 is a plus adjustment of $6,000 (3% of $300,000). This adjustment reflects the appreciation in the market value of the property over the three-month period.

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