Property Valuation
The 'absorption rate' in a NC real estate market refers to:
AHow quickly a property's depreciation is absorbed
BThe rate at which available properties in a market are sold (absorbed) over a given time period✓ Correct
CThe tax absorption rate for new development
DThe rate at which rental income absorbs operating expenses
Explanation
Absorption rate measures how quickly properties are being sold in a specific market — typically expressed as units per month or months of inventory. It helps determine whether a market favors buyers or sellers.
Related North Carolina Property Valuation Questions
- A NC appraiser who is hired by a buyer's lender has their primary client relationship with:
- A NC property's capitalization rate is determined primarily by:
- In the sales comparison approach, a positive adjustment to a comparable sale means:
- Plottage value refers to:
- Effective gross income (EGI) in an income analysis is calculated as:
- In the cost approach, 'land value' is estimated separately because:
- A final value opinion in a real estate appraisal is derived by:
- An appraisal of a home in Charlotte, NC comes in $15,000 below the contract price. The most likely outcome is:
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