Market Research & Competitive Analysis Flashcards
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Read the first 7 Market Research & Competitive Analysis flashcards as text
Which of the following best defines a 'balanced market' in real estate?
Answer: Approximately 5–7 months of housing inventory, with neither buyers nor sellers holding clear advantage
A balanced market generally has 5–7 months of supply, where neither buyers nor sellers hold a significant negotiating advantage.
What is the purpose of a price-per-square-foot analysis when researching comparable properties?
Answer: To normalize pricing across homes of different sizes for a meaningful comparison
Dividing sale price by square footage allows agents to compare homes of different sizes on an equal footing.
An agent notices a dramatic spike in pending sales in a market. Which conclusion is most supported by this data point alone?
Answer: Buyer demand has recently increased or inventory has tightened
A rise in pending sales indicates strong recent buyer activity, typically reflecting increased demand or reduced supply.
When analyzing competition for a luxury listing, which factor is LEAST relevant to include in a competitive market analysis?
Answer: The seller's original purchase price 15 years ago
A seller's historical purchase price is irrelevant to current market value, which is determined by present market conditions and comparables.
A Realtor is preparing a buyer's market analysis for a relocation client. Which data set would be most useful for comparing multiple neighborhoods?
Answer: Crime statistics, school ratings, average commute times, and median price trends by neighborhood
Neighborhood comparisons for relocation buyers require quality-of-life indicators combined with price trend data to support the decision.
What does a high list-price-to-sale-price ratio above 100% in a market indicate?
Answer: Buyers are offering above list price, indicating a competitive seller's market
A ratio above 100% means buyers are bidding over asking price, a classic sign of high demand in a seller's market.
Which of the following is an example of primary market research conducted by a real estate agent?
Answer: Conducting a buyer survey after open house events in a target neighborhood
Primary research is original data collected directly by the agent, such as surveys or interviews, rather than data compiled by others.
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