Question

Suppose a developer is interested in building a new residential subdivision. Through his market research, the developer has determined that the target market segment potential in year 1 consists of 160 households. If the developer projects that he will be able to sell 24 homes in the first year, what is his assumed capture rate?

(A) 24%
(B) 6.67%
(C) 85%
(D) 15%

Answer 1

Answer:

(D) 15%

Explanation:

A capture rate is the segment of sales in a real estate market sold by one project. That is the percentage of the market that a project will have to capture to be successful.

Consequently to determine it, the calculation to be performed is:

24 / 160 = 0.15

So the assumed capture rate is 15%