What does a list-to-sale price ratio measure?
Correct Answer
D) How closely final prices track asking prices
Why this is correct: The list-to-sale price ratio compares final sale price to original list price. A ratio near 1.0 indicates properties sell close to asking, suggesting a strong seller's market. Tracking this ratio helps appraisers assess market conditions and exposure time. Why the other choices are wrong: The proportion of listings that eventually sell measures absorption, not price tracking. The commission rate paid is a separate contractual term. The share of listings taken by one brokerage measures market share, not pricing. Exam tip: List-to-sale ratio indicates market tightness; near 1.0 means strong demand.
Why This Is the Correct Answer
Why this is correct: The list-to-sale price ratio compares final sale price to original list price. A ratio near 1.0 indicates properties sell close to asking, suggesting a strong seller's market. Tracking this ratio helps appraisers assess market conditions and exposure time. Why the other choices are wrong: The proportion of listings that eventually sell measures absorption, not price tracking. The commission rate paid is a separate contractual term. The share of listings taken by one brokerage measures market share, not pricing. Exam tip: List-to-sale ratio indicates market tightness; near 1.0 means strong demand.
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