NAR Market Research & Competitive Analysis 3

Question 1

A real estate agent wants to assess supply-and-demand conditions for condos in a downtown market. Which two data points are most critical?

Accepted Answer

Months of inventory and year-over-year closed sales volume

Answer

Months of inventory combined with year-over-year sales volume directly reflects the balance between supply and demand.

Question 2

Which type of market research focuses on why buyers chose or rejected a specific property, gathered through interviews or surveys?

Accepted Answer

Qualitative research

Answer

Qualitative research captures motivations, opinions, and perceptions through methods like interviews and focus groups.

Question 3

An agent is evaluating competition for a new listing. Which factor makes a competing active listing a stronger threat?

Accepted Answer

It is in the same school district, similar size, and priced 3% below the subject

Answer

A nearby, similarly sized listing in the same school district priced below the subject is the most direct competitive threat.

Question 4

What is the primary purpose of tracking expired and withdrawn listings in a market analysis?

Accepted Answer

To identify overpriced properties and determine realistic market price ceilings

Answer

Expired and withdrawn listings reveal price points the market rejected, helping agents establish realistic pricing boundaries.

Question 5

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?

Accepted Answer

Distressed sales should be excluded or adjusted, as they don't reflect arm's-length market value

Answer

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.

(NAR) National Association of Realtors Certification Practice Test

(NAR) National Association of Realtors Certification Practice Test

NAR Market Research & Competitive Analysis 3