Property Valuation
Absorption rate in real estate market analysis measures:
AHow quickly a property absorbs rainfall (drainage quality)
BThe rate at which available properties are sold or absorbed in a market over a given time period✓ Correct
CThe percentage of a listing price that becomes the sale price
DHow quickly a property's value appreciates after sale
Explanation
Absorption rate is the rate at which available homes sell in a given market area over a specific period (typically measured in months of supply). A lower absorption rate (fewer months of supply) indicates a seller's market; higher indicates a buyer's market.
Related Tennessee Property Valuation Questions
- In Tennessee, the 'replacement cost new' in the cost approach is the cost to build:
- The market value of a property assumes:
- If a property has both an older home and a vacant lot and the appraiser concludes the highest and best use is to demolish the home and build condominiums, this analysis supports a:
- In the income capitalization approach, a lower capitalization rate results in a:
- The principle of anticipation in real estate valuation means that a property's value reflects:
- When a comparable sale was distressed (sold in foreclosure at below-market price), an appraiser should:
- Reproduction cost in the cost approach means:
- An appraisal performed for a federally regulated mortgage transaction in Tennessee must be completed by:
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