Which data source best supports delineating where a subject's buyers actually shop?
Correct Answer
C) MLS search patterns and agent interviews about competing listings
Why this is correct: A market boundary is defined by buyer behavior. MLS search patterns (what listings buyers view together) and agent interviews about competition provide direct evidence of where buyers actually substitute properties, which is the true market area. Why the other choices are wrong: 'A radius tool set to one mile' is wrong; a fixed radius is arbitrary and may not match buyer search patterns. 'The assessor's official neighborhood boundary code taken alone' is wrong; administrative boundaries are for taxation, not necessarily market behavior. 'The census tract boundary file' is wrong; census tracts are for demographic data, not market delineation. Exam tip: For market area, follow the buyers. Behavioral data (MLS searches, agent insight) trumps arbitrary lines on a map.
Why This Is the Correct Answer
Why this is correct: A market boundary is defined by buyer behavior. MLS search patterns (what listings buyers view together) and agent interviews about competition provide direct evidence of where buyers actually substitute properties, which is the true market area. Why the other choices are wrong: 'A radius tool set to one mile' is wrong; a fixed radius is arbitrary and may not match buyer search patterns. 'The assessor's official neighborhood boundary code taken alone' is wrong; administrative boundaries are for taxation, not necessarily market behavior. 'The census tract boundary file' is wrong; census tracts are for demographic data, not market delineation. Exam tip: For market area, follow the buyers. Behavioral data (MLS searches, agent insight) trumps arbitrary lines on a map.
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