Market Research & Competitive Analysis Flashcards

An agent finds three comparable sales but each sold more than 12 months ago in a rapidly appreciating market. What adjustment is required?

Answer: A time adjustment (market conditions adjustment) to account for price appreciation since the sale date

In an appreciating market, older comparable sales must be adjusted upward to reflect current price levels.

When presenting a CMA to a seller, a Realtor should ideally include how many comparable sold properties?

Answer: A minimum of 3–5 recent sold properties as the core of the analysis

A CMA typically uses 3–5 recent comparable sales to establish a reliable value range without over-weighting outliers.

Which term describes the practice of an agent examining the percentage of asking price that sellers in a market are actually receiving at closing?

Answer: Sales-to-list price ratio analysis

The sales-to-list price ratio compares final closed prices to original asking prices, revealing negotiation patterns in a market.

A real estate agent is analyzing a market where new construction starts have risen 30% year-over-year. How should this impact pricing strategy for a resale listing?

Answer: Consider whether new construction inventory may compete with or suppress resale prices in coming months

Rising new construction adds future supply that can compete with resale homes and moderate price growth or pressure pricing downward.

Which of the following best describes a 'micro-market' analysis in real estate?

Answer: A detailed analysis of a specific neighborhood, street, or property type within a larger market area

A micro-market analysis zooms in on hyper-local conditions — such as a specific subdivision or street — that may differ significantly from broader market trends.

An agent's CMA shows a value range of $410,000–$440,000 for a property. The seller wants to list at $480,000. What is the most professional response?

Answer: Present the CMA data clearly, explain the risks of overpricing, and let the seller make an informed decision

A Realtor's fiduciary duty includes providing accurate market data and honest counsel, while ultimately respecting the seller's right to make an informed decision.

What is 'DOM' and why is it an important competitive analysis metric?

Answer: Days on Market — measures how long listings take to sell, indicating demand strength and pricing accuracy

Days on Market (DOM) reveals how quickly homes are selling, with low DOM indicating high demand and well-priced listings.