Property Valuation
The term 'absorption rate' in Connecticut real estate refers to:
AThe rate at which a building absorbs moisture
BThe rate at which available properties in a market are sold or leased over a period of time✓ Correct
CThe rate of property tax increase annually
DThe rate of depreciation in the cost approach
Explanation
Absorption rate measures market demand—the number of available properties sold or leased per month (or year). A high absorption rate indicates strong demand; a low rate indicates oversupply or weak demand.
People Also Study
Related Connecticut Questions
- A Connecticut broker sold 8 properties in a year with an average sale price of $485,000. The broker earned an average commission rate of 2.8% per side. What was the broker's total gross commission income?Real Estate Math
- The Connecticut conveyance tax rate for most residential properties sold for $800,000 or less is approximately:Escrow & Title
- A Connecticut broker's firm sold properties totaling $12,500,000 last year and earned a 5% average commission. Total operating expenses were $200,000. What was the firm's net income?Real Estate Math
- A Connecticut property's taxes are $8,730/year. The assessment is $291,000 at a ratio of 70%. What is the market value and mill rate?Real Estate Math
- A Connecticut property taxes are $9,720 per year. The assessment ratio is 70% and the market value is $580,000. What is the mill rate?Real Estate Math
- If a Connecticut income property has an NOI of $90,000 and the market cap rate is 6%, what is the estimated value using the income approach?Property Valuation
- A Connecticut property recently sold for $630,000. If the annual property taxes are $9,450, what is the effective tax rate as a percentage of the sale price?Property Valuation
- A Connecticut property has a market value of $525,000 and the assessed value is 70% of market value. The mill rate is 32. What are the annual property taxes?Property Valuation
Key Terms to Know
Depreciation
A reduction in the value of an improvement (building) over time due to physical deterioration, functional obsolescence, or external factors.
Comparable Sales (Comps)Recently sold properties similar in size, condition, and location used by appraisers and agents to estimate a property's market value.
Option ContractA contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
Adjustable-Rate Mortgage (ARM)A mortgage with an interest rate that changes periodically based on a financial index, usually after an initial fixed-rate period.
Math Concepts
Study This Topic
Practice More Connecticut Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Connecticut Quiz →