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Unit 5:
Market Analysis
Question | Answer |
---|---|
market analysis | to examine the demand for and supply of a property type and the geographic market area for that property type. |
Market area | areas where market participants live and work |
market trend analysis | the analysis of data that exhibits an ongoing upward or downward pattern that is not due to seasonal changes. |
marketability study | the study to determine if the item in question is marketable. |
feasibility study | a study of the cost-benefit relationship of an economic endeavor. |
absorption analysis | to predict the absorption rate of a certain type of property in a given market. An absorption rate signifies the rate at which a type of property is either bought or leased, i.e. absorbed by the market. |
Price point | a point on the scale of possible prices at which a property might be marketed. |
There often is some confusion regarding market analysis, a feasibility study, and a marketability study. The primary reason for this confusion results from: | the client's lack of understanding and miscommunication with the appraiser |
According to Standards Rule 1-3(a) in USPAP, an appraiser when doing a regional analysis, must consider: | economic and market trends to obtain credible valuation results. |
A political issue to consider in a regional market analysis is: | regional government controls and cooperation among local government jurisdictions in solving inter-city problems. |
Which of the following refers to the economic impact of a community that relies heavily on a specific industry? | Regional employment variations |
Which of the following factors helps foster rapid increases in housing prices in a regional market analysis? | Creative financing offered by lenders |
What has increased the effect of regional economic activity on local property values through the extensive use of automobile and advanced public transportation systems? | Increased mobility |
Which of the following is not one of the physical issues to consider in a regional market analysis? | Availability of jobs |
Adam is an appraiser who is analyzing the economic issues affecting a particular region. Which of the following is an economic issue to consider in a regional market analysis? | Quality and diversification of defense-oriented industries |
Physical issues to consider in a regional market analysis include | public transportation facilities, available open spaces, and airports. |
Which of the following statements is true regarding the impact of economic factors on real estate? | The impact of regional employment variations cannot be overemphasized |
In a regional market analysis, which of the following is an economic issue to be considered? | Quality and quantity of institutions of higher learning |
Factors affecting the rapid increases in housing prices include | lower-than-normal unemployment, trade-up buyers, and creating lending programs. |
In certain areas, farmers compete for their share of water allotment with: | city dwellers. |
Which of the following is not a social issue to consider in a regional market analysis? | Job classification |
As cities grow and become more crowded, what becomes more important? | Individual property rights |
In a city market analysis, a basic political consideration is: | the city master plan and area specific plans. |
A basic economic consideration in a city market analysis is: | sufficient tax base to fund government services. |
What is the final part of the economic analysis of a residential property | A study of the properties that surround the subject property and influence its value |