Why does a data set drawn only from one listing service risk being incomplete?
Correct Answer
B) Some sales never appear in that service
Why this is correct: Some sales never appear in that service. The governing concept is data completeness. Multiple Listing Services (MLS) capture brokered transactions, but off-market sales, private transfers, auctions, and builder-direct sales may not be recorded there, leading to an incomplete and potentially biased data set. Why the other choices are wrong: Listing services record only asking prices is false; they typically record final sale prices. Listing data may not be used in appraisals is false; it is a common and valid data source, though not exclusive. Services report only the current calendar year is false; historical data is usually available. Exam tip: Know your data sources' coverage gaps; for a complete analysis, supplement MLS data with public records and other sources.
Why This Is the Correct Answer
Why this is correct: Some sales never appear in that service. The governing concept is data completeness. Multiple Listing Services (MLS) capture brokered transactions, but off-market sales, private transfers, auctions, and builder-direct sales may not be recorded there, leading to an incomplete and potentially biased data set. Why the other choices are wrong: Listing services record only asking prices is false; they typically record final sale prices. Listing data may not be used in appraisals is false; it is a common and valid data source, though not exclusive. Services report only the current calendar year is false; historical data is usually available. Exam tip: Know your data sources' coverage gaps; for a complete analysis, supplement MLS data with public records and other sources.
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