Marketing & Advertising Strategies Flashcards
7 cards from real CGA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Marketing & Advertising Strategies flashcards as text
An appraiser conducting a highest and best use analysis must consider which marketing factor when evaluating alternative uses?
Answer: Whether there is adequate market demand to support the use
Highest and best use must be legally permissible, physically possible, financially feasible, and maximally productive, with market demand being critical to financial feasibility.
In a market study for a proposed apartment complex, the term 'capture rate' refers to:
Answer: The percentage of available market demand a project is expected to attract
Capture rate is the percentage of total market demand that a specific project is projected to capture based on its competitive position.
When an appraiser states that a property has 'good market appeal,' this judgment should be supported by:
Answer: Evidence from actual buyer behavior and market data
Market appeal must be objectively supported by buyer behavior, comparable sales activity, and documented market preferences rather than subjective opinions.
A 'penetration rate' in real estate market analysis measures:
Answer: The proportion of eligible households that a housing project can realistically attract
Penetration rate measures what proportion of the total eligible household pool a residential project is expected to attract as tenants or buyers.
For an industrial property appraisal, which marketing channel is typically most relevant for identifying comparable sales?
Answer: CoStar, LoopNet, and industrial broker networks
Commercial and industrial property transactions are tracked through commercial-specific databases like CoStar and LoopNet and through specialized broker networks.
Which statement best describes the relationship between marketing time and value in an appraisal report?
Answer: Marketing time is an output of value, not an independent variable
Marketing time is derived from the concluded value — it represents how long a property priced at market value would take to sell, not the other way around.
A CGA analyzing a retail strip center should include which marketing element in the market analysis section?
Answer: Competitive supply analysis including vacancy rates at nearby retail centers
Competitive supply analysis, including vacancy rates at competing centers, helps establish market conditions affecting the subject property's income potential.