Question

Shady Acres neighborhood has had 103 homes sold last year out of 560 homes in the area. Sunny Hills neighborhood has had 87 homes sold with 400 total homes. Windy Woods neighborhood has had 150 homes sold with 800 total homes. Still Waters neighborhood has had 145 homes sold with 625 total homes. All are in the same general price range in well-kept areas of the city. Which neighborhood would be the best farm area based on likely reward-to-effort ratios?

Answer 1

Answer:

Still Waters

Explanation:

Shady Acres neighborhood has had 103 homes sold last year out of 560 homes in the area. Sunny Hills neighborhood has had 87 homes sold with 400 total homes. Windy Woods neighborhood has had 150 homes sold with 800 total homes. Still Waters neighborhood has had 145 homes sold with 625 total homes. All are in the same general price range in well-kept areas of the city.

Which neighborhood would be the best farm area based on likely reward-to-effort ratios?

For each of the neighborhoods, the sales associate should determine the turnover index. This is  by dividing the number of sales per year by the total number of homes in the neighborhood.

This neighborhoods will have a turnover ratio of 23.2

(145 sales ÷ 625 total homes)

This is the highest of the four neighborhoods (Shady Acres,Sunny Hills,Windy Woods,Still Waters neighborhoods) analyzed.