Property Valuation
In New Mexico, when an appraiser reports 'absorption rate' for a new subdivision, they are measuring:
AHow quickly the soil absorbs water
BThe rate at which available homes in a market are sold or leased✓ Correct
CThe depreciation rate of the improvements
DThe income capitalization rate
Explanation
Absorption rate measures how quickly homes or units in a market are sold or leased—typically expressed as units per month or months of supply. It is used in feasibility studies and market condition analysis.
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