Certified Residential Appraiser Practice Exam

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Study for the Certified Residential Appraiser Exam. Use flashcards and multiple choice questions with hints and explanations. Ensure you're ready for your certification!

Practice this question and more.

What is characterized by buyers having the upper hand due to a surplus of properties?

Seller's Market
Buyer's Market
Balanced Market
Deficient Market

The correct answer is: Buyer's Market

A buyer's market is characterized by a surplus of properties available for sale, leading to a situation where buyers have more choices and negotiating power than sellers. In such a market, the demand for homes is lower than the supply, which typically results in reduced home prices and allows buyers to make more favorable offers. When buyers have the upper hand, they can negotiate better terms and prices because sellers need to attract interest amidst the abundance of options available to purchasers. This can lead to extended days on the market for properties and a decrease in sale prices as sellers may need to lower their asking prices to make their homes more competitive. Given these dynamics, a buyer’s market is identified by the favorable conditions for buyers due to the excess inventory of properties.