Property Management
The absorption rate in an Indiana market analysis measures:
AHow quickly moisture is absorbed by the soil on a property
BThe rate at which available properties are being sold or leased in a given market✓ Correct
CThe rate of appreciation in the market
DHow quickly new construction permits are issued
Explanation
Absorption rate measures market activity — how quickly listed inventory is being absorbed (sold or leased) in a given market and time period. A low absorption rate indicates a slow market; a high rate indicates strong demand.
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Key Terms to Know
Option Contract
A contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
Earnest MoneyA deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
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