NAR Market Research & Competitive Analysis 2

Question 1

A seller asks why their home is priced 8% below the neighborhood average. Which CMA adjustment principle best explains this?

Accepted Answer

Dollar adjustments for inferior features relative to comparables

Answer

CMA pricing uses dollar adjustments to account for feature differences between a subject property and its comparables.

Question 2

Which metric best indicates whether a local market is shifting from a seller's market to a buyer's market?

Accepted Answer

Rising median days on market combined with increasing active inventory

Answer

Rising days on market and swelling inventory signal reduced demand and a shift toward buyer-favorable conditions.

Question 3

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?

Accepted Answer

Expand the search radius or time range to find more recent comparable sales

Answer

When recent sales are unavailable in the immediate area, expanding the geographic or time parameters yields more reliable comparable data.

Question 4

What does absorption rate measure in real estate market research?

Accepted Answer

The rate at which available homes are sold in a given time period

Answer

Absorption rate measures how quickly available inventory is sold, typically expressed as months of supply.

Question 5

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?

Accepted Answer

Buyer negotiating power has increased

Answer

A falling list-to-sale ratio means buyers are successfully negotiating prices below list, reflecting increased buyer leverage.

(NAR) National Association of Realtors Certification Practice Test

(NAR) National Association of Realtors Certification Practice Test

NAR Market Research & Competitive Analysis 2