Property Valuation
In West Virginia, what is the significance of the 'absorption rate' in real estate market analysis?
AThe rate at which a property absorbs sunlight (energy efficiency)
BThe rate at which available properties are sold or leased in a given market over a period of time✓ Correct
CThe percentage of a loan payment that goes toward principal
DThe rate at which property values increase annually
Explanation
The absorption rate measures how quickly available properties are being sold or leased in a given market area and time period. A high absorption rate indicates a seller's market (properties selling quickly); a low rate indicates a buyer's market (excess inventory).
Related West Virginia Property Valuation Questions
- A West Virginia commercial property's 'net operating income' (NOI) is calculated as:
- A West Virginia appraiser makes 'positive adjustments' to comparable sales when the comparable property:
- In a West Virginia residential appraisal, the appraiser must give primary weight to which approach to value?
- When a West Virginia appraiser adjusts a comparable sale for a difference in square footage, the appraiser applies:
- Gross Rent Multiplier (GRM) is calculated by:
- In a West Virginia neighborhood undergoing revitalization, the principle of change would lead an appraiser to:
- In the sales comparison approach, adjustments are made to the comparable properties because:
- In West Virginia, the gross rent multiplier (GRM) is calculated as:
Practice More West Virginia Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free West Virginia Quiz →