Humber/Ontario Real Estate Course 4 Exam Practice

When preparing time adjustments for properties sold in prior months during a steadily improving market, what should a salesperson do?

1. Make minus adjustments to the sale prices

2. Apply plus adjustments of 1%, 3%, and 5% respectively to the listing prices

3. Make appropriate plus adjustments based on the time since the sale

4. Plus adjustment of $6,000 to a property sold for $300,000 three months ago

5. Skip adjustments for properties sold over three months ago

6. Reduce prices proportionally to market changes

The correct answer is: Make appropriate plus adjustments based on the time since the sale

In a steadily improving market, making appropriate plus adjustments based on the time since the sale is crucial for reflecting current market conditions. When properties were sold in the past, the sale prices may not accurately represent their current value due to market appreciation. Therefore, by applying these adjustments, a salesperson can better align the past sale prices with the present market environment. The adjustment should consider not only the duration since the previous sale but also the market trend observed during that period. Generally, as time passes and the market improves, properties are likely to appreciate in value. Thus, applying plus adjustments enables the salesperson to present a more accurate and competitive pricing strategy for potential buyers. Other options may suggest either reducing values or applying a fixed percentage without considering the nuances of market conditions over time, which would not effectively capitalize on the appreciation trend present in a robust market. Therefore, option C aligns best with the necessary strategy to ensure properties are competitively priced in accordance with their current market value.