Market Research & Competitive Analysis Flashcards
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Read the first 7 Market Research & Competitive Analysis flashcards as text
A real estate agent wants to assess supply-and-demand conditions for condos in a downtown market. Which two data points are most critical?
Answer: Months of inventory and year-over-year closed sales volume
Months of inventory combined with year-over-year sales volume directly reflects the balance between supply and demand.
Which type of market research focuses on why buyers chose or rejected a specific property, gathered through interviews or surveys?
Answer: Qualitative research
Qualitative research captures motivations, opinions, and perceptions through methods like interviews and focus groups.
An agent is evaluating competition for a new listing. Which factor makes a competing active listing a stronger threat?
Answer: It is in the same school district, similar size, and priced 3% below the subject
A nearby, similarly sized listing in the same school district priced below the subject is the most direct competitive threat.
What is the primary purpose of tracking expired and withdrawn listings in a market analysis?
Answer: To identify overpriced properties and determine realistic market price ceilings
Expired and withdrawn listings reveal price points the market rejected, helping agents establish realistic pricing boundaries.
A buyer's agent researches a neighborhood and finds that 40% of sales in the past year were distressed (foreclosures/short sales). How should this affect a CMA for a traditional sale?
Answer: Distressed sales should be excluded or adjusted, as they don't reflect arm's-length market value
Distressed sales often sell below market value due to condition or seller duress and should be excluded or adjusted when assessing arm's-length market value.
Which statistic represents the middle value of all home prices sold in a market over a given period?
Answer: Median sale price
The median sale price is the midpoint where half of homes sold above and half below, making it less skewed by outliers than the mean.
A Realtor identifies that a comparable sale included seller-paid closing costs of $8,000. How should this be handled in a CMA?
Answer: Subtract $8,000 from the comparable's sale price as a concession adjustment
Seller-paid concessions effectively reduce the net price received, so the comparable's price is adjusted downward by the concession amount.
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