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What is the expected period from when a property is offered until it reaches full occupancy called?

  1. Absorption Period

  2. Demand Analysis

  3. Marketability Analysis

  4. Feasibility Analysis

The correct answer is: Absorption Period

The expected period from when a property is offered until it reaches full occupancy is known as the Absorption Period. This term represents the time necessary for the market to absorb the available units or space in the property after its introduction to the market. It is a critical metric in real estate, as it helps appraisers and developers understand how quickly a property is likely to be rented or sold given current market conditions. A shorter absorption period typically indicates a stronger demand for the property compared to one with a longer absorption period, which may suggest oversupply or weak demand. In this context, it is important to differentiate this terminology from others. Demand Analysis focuses on understanding the level of demand for a type of property, which might inform potential absorption rates but is not the same as the absorption period itself. Marketability Analysis evaluates how likely a property is to sell or lease based on its features, location, and the competition, but does not specifically refer to the time frame involved in achieving full occupancy. Feasibility Analysis assesses whether a project or investment is practical and economically viable, but again, this is broader than simply measuring the time it takes to fill a property. Thus, the terminology of Absorption Period is specifically designed to track and quantify the timeline from offering