A market conditions analysis in a residential appraisal typically examines:
Correct Answer
C) Inventory, absorption, days on market and price trends
Why this is correct: Inventory, absorption, days on market and price trends. These four key metrics provide a comprehensive view of supply, demand, marketing time, and price direction in a residential market, which is essential for a market conditions adjustment. Why the other choices are wrong: The lender's underwriting guidelines are not a market analysis. The subject's original construction cost is a cost approach input. The appraiser's own prior assignments are not a systematic market analysis. Exam tip: Remember the four key metrics for residential market analysis: inventory, absorption, DOM, and price trends.
Why This Is the Correct Answer
Why this is correct: Inventory, absorption, days on market and price trends. These four key metrics provide a comprehensive view of supply, demand, marketing time, and price direction in a residential market, which is essential for a market conditions adjustment. Why the other choices are wrong: The lender's underwriting guidelines are not a market analysis. The subject's original construction cost is a cost approach input. The appraiser's own prior assignments are not a systematic market analysis. Exam tip: Remember the four key metrics for residential market analysis: inventory, absorption, DOM, and price trends.
More real-estate-market Questions
A market-conditions adjustment should be applied to a comparable:
Building permit data is most useful to an appraiser as:
In the neighborhood life cycle, what characterizes the decline stage?
'Filtering' describes the process by which:
Under the principle of substitution, the maximum value of a property tends to be set by:
Why does an appraiser analyze the market area before analyzing the subject property?
In which phase of the real estate cycle do rising vacancies first meet a still-growing construction pipeline?
Which measure most directly signals demand strength in a housing market?
The principle of consistent use prohibits:
Frictional vacancy in a rental market refers to:
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