Market Research & Competitive Analysis Flashcards
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Read the first 7 Market Research & Competitive Analysis flashcards as text
A seller asks why their home is priced 8% below the neighborhood average. Which CMA adjustment principle best explains this?
Answer: Dollar adjustments for inferior features relative to comparables
CMA pricing uses dollar adjustments to account for feature differences between a subject property and its comparables.
Which metric best indicates whether a local market is shifting from a seller's market to a buyer's market?
Answer: Rising median days on market combined with increasing active inventory
Rising days on market and swelling inventory signal reduced demand and a shift toward buyer-favorable conditions.
An agent compiles a competitive market analysis and finds that all recent sales within 0.5 miles are over 18 months old. What is the most appropriate next step?
Answer: Expand the search radius or time range to find more recent comparable sales
When recent sales are unavailable in the immediate area, expanding the geographic or time parameters yields more reliable comparable data.
What does absorption rate measure in real estate market research?
Answer: The rate at which available homes are sold in a given time period
Absorption rate measures how quickly available inventory is sold, typically expressed as months of supply.
A Realtor notices that the list-to-sale price ratio in a zip code has dropped from 101% to 97% over six months. What does this most likely indicate?
Answer: Buyer negotiating power has increased
A falling list-to-sale ratio means buyers are successfully negotiating prices below list, reflecting increased buyer leverage.
Which data source provides the most reliable closed-sale price data for completing a CMA in the U.S.?
Answer: MLS sold data
MLS sold data is the most accurate and timely source for verified closed-sale prices used in CMA preparation.
When performing a competitive market analysis, which adjustment would be made to a comparable that has a swimming pool when the subject property does not?
Answer: Subtract value from the comparable
When a comparable has a superior feature the subject lacks, its price is adjusted downward to reflect that difference.
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