Humber/Ontario Real Estate Course 3 Exam Practice

When is a property valuation typically higher based on frontage price adjustments?

1. A:When the frontage is larger and there is a positive adjustment

2. B:When the frontage is smaller and there is a positive adjustment

3. C:When the frontage is larger and there is a negative adjustment

4. D:When the frontage is smaller and there is a negative adjustment

5. E:When the frontage remains unchanged

6. F:When no adjustments are applicable

The correct answer is: A:When the frontage is larger and there is a positive adjustment

A property valuation typically increases based on frontage price adjustments when the frontage is larger and accompanied by a positive adjustment. Frontage refers to the measurement of the property that directly faces a street or waterfront, which can significantly influence its market value. Larger frontages are often associated with greater accessibility, enhanced visibility, and a more appealing investment opportunity compared to properties with smaller frontages. When the adjustment is positive, it indicates that this larger frontage adds value to the property, reflecting the greater potential for development, higher demand, and possibly improved resale value. In this context, a positive adjustment reinforces that the larger size of the frontage is seen as a beneficial factor in determining the property's worth. On the other hand, smaller frontages generally might lead to reduced property value, particularly if positive adjustments are not factored in. Thus, understanding how adjustments impact the valuation process is crucial for accurately assessing a property's worth in relation to its frontage.