Humber/Ontario Real Estate Course 4 Exam Practice

The adjusted sale price of a comparable property exceeds that of the subject property due to:

1. Greater lot size.

2. Better location.

3. Higher quality construction.

4. More desirable amenities.

5. Recent renovations.

6. Shorter time on the market.

The correct answer is: Greater lot size.

The adjusted sale price of a comparable property exceeding that of the subject property can indeed be attributed to a greater lot size. Lot size plays a significant role in property valuations; larger lots often command higher prices because they offer more space for outdoor activities, potential expansions, or even future developments. The real estate market typically values properties with more land highly, reflecting desirability and potential for enhancement. While other factors like location, construction quality, amenities, renovations, and market time can also influence sale prices, a greater lot size is a clear and direct contributor to a higher adjusted sale price, as it impacts both utility and potential future value of a property. Understanding this relationship is essential for appraisers and real estate agents when evaluating properties and preparing comparative market analyses.