REM 104: Market Analysis, Market-Driven Strategy, & HABU

It's the process of evaluating the current state of the real estate market to determine property values, trends, and opportunities. This is achieved through an understanding of the area's current demand & supply conditions.

• Market Segmentation

• Marketing Mix

• Market Analysis

• Situation Analysis

It's an in-depth study that assesses whether a specific project is financially viable and practical.

• Feasibility Study

• HABU Analysis

• Situational Analysis

• Market Study

It is a critical evaluation process used to determine the most profitable and feasible use of a property, which is legally permissible, physically possible, financially viable, and that results in the highest value.

• Market-Driven Strategy

• HUBAK Analysis

• Comparative Market Analysis

• HABU Analysis

What are main characteristics of a Market-Driven Strategy? (You may select more than one)

• High Performance

• Product-Centric

• Market Orientation

• Competitive Advantage

This involves comparing the property in question with similar properties in the area that have recently been sold. The goal is to estimate the current market value of the property based on its location, size, and features relative to others.

• Market-Driven Strategy

• Comparative Menudo Analysis

• Situation Analysis

• Comparative Market Analysis (CMA)

What does the Absorption Rate in real estate measure?

• The number of properties sold in a specific area over a period of time

• The time it takes for a property to sell after being listed

• The speed at which available homes are sold in a specific real estate market over a given period of time

• The percentage increase in property value year-over-year

St. Patrick Development Corp., built 150 houses. Since they opened to the market 3 months ago, they have sold 27 houses. What is the absorption rate for the past 3 months?

• 22%

• 16%

• 18%

• 11%

What is a buyer's market?

• A market where there are more homes available than buyers.

• A market where there are fewer homes available than buyers.

• A market with high interest rates.

• A market where property prices rise rapidly.

In a seller's market, property prices typically...

• Stay the Same.

• Fall.

• Rise

• Fluctuate rapidly and largely.

What absorption rates signify a balanced market?

• Greater than 20%

• 15-20%

• Lesser than 15%

• 20-25%