CRPA Real Estate Market Analysis & Strategy 2

Question 1

In a relocation appraisal, the absorption rate is BEST described as which of the following?

Accepted Answer

The rate at which available homes are sold in a specific market over a given period

Answer

Absorption rate measures how quickly available homes sell in a market, calculated by dividing monthly sales by total active listings.

Question 2

A relocation appraiser determines that a market has 6 months of inventory. This condition MOST likely indicates:

Accepted Answer

A balanced market between buyers and sellers

Answer

Six months of inventory is the traditional benchmark for a balanced market where neither buyers nor sellers have a significant advantage.

Question 3

When analyzing market trends for a CRPA report, which metric BEST indicates the direction of price movement?

Accepted Answer

Average days on market combined with list-to-sale price ratio

Answer

Combining days on market with list-to-sale price ratios provides a reliable directional indicator of whether prices are rising, falling, or stable.

Question 4

Under ERC guidelines, a relocation appraisal must reflect market conditions as of which date?

Accepted Answer

The effective date of the appraisal inspection

Answer

ERC guidelines require the appraiser's opinion of value to reflect market conditions as of the effective date of the appraisal inspection.

Question 5

A CRPA appraiser is tasked with evaluating a property in a neighborhood experiencing rapid gentrification. The MOST appropriate market analysis strategy is to:

Accepted Answer

Weight the most recent comparable sales most heavily and explain the trend

Answer

In rapidly changing markets, the appraiser should give the greatest weight to the most recent sales and clearly explain the upward trend in the report.

(CRPA) Certified Relocation Professional Appraiser Practice Test

(CRPA) Certified Relocation Professional Appraiser Practice Test

CRPA Real Estate Market Analysis & Strategy 2