In Census new-home sales data, what does the reported sales price exclude?
Correct Answer
A) Extras or options paid for in cash outside the original price
The sales price is the price agreed at the first contract or deposit; it does not include extras or options paid for in cash by the purchaser or otherwise not in the original reported price.
Why This Is the Correct Answer
Option A is correct because the Census sales price does not include the cost of any extras or options paid for in cash by the purchaser or otherwise not included in the original sales price reported. The figure reflects the original contract price. Appraisers using these statistics should know what is and is not counted.
Why the Other Options Are Wrong
Option B: The value of the lot that was sold together with the house
Option B is wrong because the reported price is not described as excluding the value of the lot sold with the house. The stated exclusion is extras or options paid outside the original price.
Option C: Any upgrades included in the first sales contract
Option C is wrong because upgrades included in the first sales contract are part of the original price. Only extras or options outside the original price are excluded.
Option D: The builder’s profit and overhead on the house
Option D is wrong because the builder's profit and overhead are part of the price a buyer pays and are not listed as an exclusion from the Census sales price.
First contract, no cash extras
Census counts the price on the first contract; cash extras added outside it are left out.
How to use: Use this when a question asks what the Census new-home sales price includes or excludes.
Exam Tip
For data definition questions, pick the answer that matches the source's stated exclusion rather than a general economic idea.
Common Mistakes to Avoid
- -Assuming the Census price excludes the lot
- -Assuming upgrades in the original contract are excluded
- -Using published statistics without reading their definitions
Concept Deep Dive
Analysis
This question tests a specific definition in Census new-home sales data. The reported sales price is the price agreed at the first contract or deposit. It does not include extras or options paid for in cash or otherwise not in the original reported price.
Background Knowledge
Published housing statistics come with definitions that affect how they should be read. Census new-home sales prices reflect the original contract terms, so later cash add-ons are not captured. Appraisers should read source definitions before comparing published figures to individual sales.
Real-World Application
An appraiser compares a builder's closed sale with Census new-home price data. She notices the buyer paid cash for a finished basement after signing, and recognizes that such extras would not appear in the Census reported price.
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