New York Real Estate Salesperson ExaminationValuation and Market AnalysisEasy
When conducting a market analysis, a real estate agent compiles data on recent sales, current listings, and expired listings in the neighborhood. What is the primary purpose of analyzing expired listings?
- ATo determine the average time on market for sold properties.
- BTo find potential buyers who missed out on those properties.
- CTo identify properties that were overpriced.
- DTo assess the level of buyer demand in the area.
Show answer & explanationAnswer & explanation
Correct answer: C. To identify properties that were overpriced.
Expired listings often indicate properties that were priced too high for the market, had significant condition issues, or were poorly marketed. Analyzing them helps an agent understand what price points the market will not support.
Why the other options are wrong
- A. Time on market is usually analyzed for sold and current listings, not expired ones.
- B. While possible, the primary purpose in market analysis is price guidance.
- D. Assessing buyer demand is broader; expired listings specifically indicate price resistance.
Expired Listings Analysis
Reviewing properties that failed to sell within their listing period to understand market resistance and pricing thresholds.
- Helps identify properties that were likely overpriced.
- Provides insight into what the market will not bear.
- Crucial for advising sellers on realistic pricing.
Memory trick: CMA: Sold, Active, Expired tell the tale.