Days on market for the comparables averaged 18, while the subject has been listed 140 days without an offer. This suggests:
Correct Answer
A) Possible overpricing or other marketing problems worth investigating
Longer listing exposure may warrant investigating pricing, marketing, access, condition and competition. It can suggest overpricing but does not prove it or imply duress in faster sales. Do not confuse actual days on market with a supported exposure-time opinion.
Why This Is the Correct Answer
Option A is correct because 140 days without an offer, against an 18-day comparable average, suggests the subject may be overpriced or may have marketing, access, condition or competition problems. The appraiser should investigate those possibilities rather than draw a firm conclusion. Longer exposure can suggest overpricing but does not prove it.
Why the Other Options Are Wrong
Option B: Proof all comparable sellers were under duress
Option B is wrong because it treats the gap as proof that all comparable sellers were under duress. Faster sales are not evidence of duress; a quick sale often reflects appropriate pricing and normal demand.
Option C: Proof that the subject is superior to the comparable sales
Option C is wrong because it calls the long listing proof that the subject is superior to the comparables. A listing that draws no offers for 140 days points, if anything, toward pricing or marketing problems, and it proves nothing about superiority.
Option D: Proof that marketing evidence has no relevance to the subject’s valuation
Option D is wrong because it says the marketing evidence has no relevance to the subject's valuation. Listing history and days on market are relevant market data that can reveal how buyers are reacting to the subject's price and features.
Long listing means look closer
A long listing with no offers is a question, not an answer. Ask about price, marketing, access, condition and competition before concluding anything.
How to use: Use this when a question contrasts the subject's listing time with typical days on market.
Exam Tip
Answers that call days-on-market evidence proof of a single cause are usually too strong; prefer the option that calls for investigation.
Common Mistakes to Avoid
- -Treating a long listing period as proof that the property is overpriced
- -Assuming quick comparable sales reflect seller duress
- -Confusing actual days on market with a supported exposure-time opinion
Concept Deep Dive
Analysis
This question tests how an appraiser interprets a large gap between the subject's listing time and the typical days on market for comparable sales. A long listing period is a signal to investigate, not proof of any single cause. The best answer recognizes possible overpricing or other marketing problems while avoiding claims of proof.
Background Knowledge
Days on market measures how long actual listings took to sell or have been listed, while exposure time is an appraiser's supported opinion of how long a property would have been marketed before a hypothetical sale at market value. Comparing the subject's listing history with comparable marketing times helps the appraiser test whether the list price reflects the market.
Real-World Application
An appraiser finds that a subject has been listed for nearly five months while similar homes sold within three weeks. She reviews the listing history, photos and price changes, learns the list price was set well above recent sales, and notes this in her analysis of the subject's market activity.
More Sales Comparison Questions
Supported adjustments are: non-market financing $10,000, GLA $36/sf, garage $3,500 per car, pool/spa $12,500. A comparable identical to the 2,800 sf subject sold for $267,000 with non-market financing. What is its adjusted price?
Using GLA $36/sf and non-market financing $10,000: a 3,100 sf comparable sold for $277,000 with non-market financing; the subject has 2,800 sf. Bath count differences are not adjusted. What is the adjusted price?
Using garage $3,500 per car and pool/spa $12,500: a comparable with a 2-car garage and a pool/spa sold for $268,000. The subject has a 3-car garage and no pool. What is the adjusted price?
Using GLA $36/sf, garage $3,500 per car and pool/spa $12,500: a 2,600 sf comparable with a 2-car garage and a pool/spa sold for $264,000. The subject is 2,800 sf with a 3-car garage and no pool. What is the adjusted price?
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A house is a 4,000 square foot home in an area of 2,000 square foot homes. How must the appraiser treat this over-improvement in the sales comparison grid?
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