Two subdivisions share a school district but differ sharply in price point and buyer profile. They are best treated as:

Correct Answer

C) Separate submarkets requiring separate analysis

Why this is correct: The principle of substitution defines a market: if buyers in one price bracket would not consider properties in the other, they are separate submarkets. Shared amenities like schools do not override fundamental price and buyer profile differences. Why the other choices are wrong: 'Interchangeable for comparable selection purposes' is false; comparables should come from the same submarket. 'One market because the school district is shared' incorrectly assumes a single amenity defines the entire market. 'A single market once prices are adjusted' is false; large adjustments indicate the properties are not true comparables from the same market. Exam tip: If you're making huge adjustments for location/neighborhood, you're likely crossing submarket lines.